REAL ESTATE

More or Less: Recession Economics 201: Allen Morris, vice president of sales for Warmington Homes in Costa Mesa, did some doodling recently and came up with this: Five years ago, the price of a new four-bedroom, 2,500-square-foot home in Orange County averaged $300,000. With a 20% down payment, the mortgage loan was $240,000. The prevailing fixed interest rate of 11% resulted in a $2,249 monthly payment;

Today, a new four-bedroom, 2,500-square-foot home in Orange County averages $250,000--or 16.7% less. With a 20% down payment, the mortgage loan is $190,000, or 21% less. The prevailing fixed interest rate of 7.5% results in a $1,280 monthly payment--a 43.1% savings.

Of course, those figures don’t include property taxes or the Mello Roos tax levied in many South Orange County developments to help finance streets, sewers and other community amenities.

A home buyer who pays cash for a $250,000 house in some parts of Orange County can still expect to have a monthly payment of $400 to $480 just for the taxes--$250 a month for basic property tax and the rest for Mello Roos.