Maine farmer Posted April 8, 2016 Report Share Posted April 8, 2016 Are not the benefits of a low interest rate cancelled out by inflation? When I bought my first house in the early 1990s, I paid only $45,000 dollars, but had a mortgage with an interest rate of 8%. Similar homes on the market in my area today are going for around $100,000 with an interest rate of around 4.5% depending on your credit rating. I have noticed similar situations with farm equipment. A tractor my father purchased when I was in kindergarten cost $14,000 would cost at least $90,000 if it was new today. Even worse, a forage harvester that we purchased 6 years ago cost $38,000 would cost us $85,000 today! Inflation stings! Quote Link to comment Share on other sites More sharing options...
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