GEO 3611 Lecture Notes - Lecture 20: Prepayment Of Loan, Negative Equity
27 Nov 2017
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Document Summary
Rise and fall of the homeownership and housing economy. Highs and lows of the 2000s are unprecedented. This is a graph showing the homeownership rate ceiling. He included this table because of the nice big view of change over time. This is a graph showing a decline in homeownership recently from 1995 to 2016. Everyone experienced decline except for seniors (65 and over). Younger (aside from under 25, (cid:272)uz as (cid:373)a(cid:374)(cid:455) of the(cid:373) do(cid:374)"t o(cid:449)(cid:374) homes) and folks with children got hit the most. One way for rented priced homes to determine their rent is using the 15 to 1 ratio. For instance, 150,000 divided by 15 (15 years) = 10,000 (per year), divided by 12 equals 833 (per month). However, the ratio has been kind of out-of-wack after 2007. A graph showing this kind of out-of-wack-ness price line. The red, straight line shows the predicted median. Home mortgages and interest was changed around this time.
