Scott & Rebecca can afford to pay $$3,000\mathrm{.}00$ each month for a mortgage. Their credit union is offering home loans at $4\mathrm{.}875\%.$ If they take out a $25-$year mortgage how much can they afford to borrow?

Heidi & Peter can only afford $$1,500\mathrm{.}00$ per month for a mortgage. Their credit union is also offering home loans at $4\mathrm{.}875\%.$ If they take out a $25-$year mortgage how much can they afford to borrow?

Looking back, what effect did cutting the payment in half have?

Increased the principal by more than half

Doubled the principal

Reduced the principal by exactly half

Reduced the principal by more than half