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Over the past 4 0 years, interest rates have varied widely. The rate for a 3 0 - year mortgage reached a high of 1
Over the past years, interest rates have varied widely. The rate for a year mortgage reached a high of in July and it reached in November A significant impact of lower interest rates on society is that they enable more people to afford the purchase of a home. In the following exercise, we consider the purchase of a home that sells for $ Assume that we can make a down payment of $ so we need to borrow $ We assume that our annual income is $ and that we have no other debt.
If we can afford to pay a monthly amount of $ determine how much we can borrow if the term is years and the interest rate is at the historic high of Round your answer to the nearest dollar.
$
Incorrect: Your answer is incorrect.
Can we afford the home?
Yes
No
Correct: Your answer is correct.
If we can afford to pay a monthly amount of $ determine how much we can borrow if the term is years and the interest rate is Round your answer to the nearest dollar.
$
Can we afford the home now?
Yes
No
Correct: Your answer is correct.
How much more can you afford to borrow when the year mortgage rate is at compared to
$
Incorrect: Your answer is incorrect.
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