LL F $62.28 $804.81 $52.22 $814.87 $42.03 $825.05 $31.72 $835.37 $21.28 $845.81 $10.70 $856.38 $4,982.29 $4,177.48 $3,362.61 $2,537.56 $1,702.19 $856.38 $-0.00 III. Home Ownership The biggest single purchase that most people make in their lives is the purchase of a home. Purchasing a home often involves financing the cost with an installment loan: a home mortgage. Mortgages typically have a 15 year or a 30 year term. The interest rate on the mortgage has an impact on the total amount paid over the life of the loan. Read the Blitzer Bonus "Four Decades of Mortgages" on p. 559. Note the average mortgage rate in 1981 for a fixed-rate 30-year mortgage and write that rate below. Interest rate in 1981 (according to the Blitzer Bonus on p. 559): 18.63% Interest rates fluctuate from day to day, but these days you might expect to find a mortgage interest rate of 6.75% for a 30-year term. Use the 6.75% rate as the current rate in your calculations below. 1981 Loan: 1. Pretend you are taking out a mortgage loan of $450