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Mortgages and Interest Rates - A Reality Check
A residential home is typically purchased with a mortgage. The dream of many Americans is simple, to own their home free and clear of any debt. The older we get, the more we have a chance to save and pay down the mortgages so that now, about 37%1 of homes are owned free and clear of any debt. This article is directed at the other 63% of homeowners who will need to consider the coming payment bomb.
Analysis
Homeowners Insurance in 2022 averages about $553 per $100,000 of value, more in some places and less in others. That is up over 31% from 2017.2
Property taxes ranges from 2.2% in New Jersey to 0.37 % in Hawaii. The national average is 1.1%
The average 30-year mortgage rates in January of each year except for 2022, which will be January and August 1st… Rates have not been this high since Feb 10th, 2011.3
So let’s calculate payments.