Home Fact: 1981 vs 2011

Interesting factoid:

In October 1981, average sales price of new homes sold in US was at $82,500.
The 30 year FRM (fixed-year mortgage) was at 18.45%.

Fast forward 30 years later, October 2011, new homes prices was at $242,300.
The 30 year FRM was at 4.07%.

Assuming no refinance happened in both scenario (house not being sold either, in both case the borrower paid the house fully 30 years), here's what will happen:

1981.
Monthly payments: $1,273.
Total payments: $458,524.
Total interest: $376,024.

2011.
Monthly payments: $1,166 ==> $107 lower than 1981.
Total payments: $419,967 ==> $38,557 cheaper than 1981.
Total interest: $177,667 ==> $198,357 less expensive than 1981.

So technically, you'll pay less in 2011, versus 1981.

Interesting.