Comparing 30-Year & 15-Year Mortgages

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Sources & Resources

• Inflation & Returns
• BLS: the value of a 2013 Dollar in 1913
• According to Robert Shiller, over the 100 years ending in 1990, inflation adjusted home prices rose only 0.2% on average.
• Jeremy Siegel calculated stock market returns to be closer to 6.8% over a 200 year period.
• Transaction Related Expenses
• The cost of maintaining & selling a home: HSH suggested maintanence costs about 1% a year, BankRate suggested median closing costs are nearly 2% at $2,402 & real estate commissions are often in the 5% to 6% range.
• FRB of St. Louis: A Note on the Effect of Transactions Costs on Real Estate Investment Return
• Equity, Prices & Moving
• Compare how quickly you build equity with a shorter loan term by using this free mortgage term comparison calculator
• US median housing prices via Census.gov & Ycharts
• In 2008 US homeowner equity dropped below 50%.
• HomeInsight stated that in the US the average homeowner moves about every 5 to 7 years, though home owners stayed in place longer after the 2008/2009 housing crash.
• Homeownership & Happiness
• NYT: Homeownership, the Key to Happiness?
• Michael Hudson on the new road to serfdom