document.write( "Question 1118848: Over the past 40 years, interest rates have varied widely. The rate for a 30-year mortgage reached a high of 14.75% in July 1984, and it reached 4.64% in October 2010. 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 $125,000. Assume that we can make a down payment of $25,000, so we need to borrow $100,000. We assume that our annual income is $43,000 and that we have no other debt. Assume that property taxes plus insurance total $250 per month.\r
\n" ); document.write( "\n" ); document.write( " If we can afford to pay a monthly amount of $753.33, what is the difference in the amount we can borrow between the high and low rates mentioned above? (Round your answer to the nearest dollar.) \n" ); document.write( "

Algebra.Com's Answer #734503 by MathTherapy(10552) $\"\"$ $\"About$

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Over the past 40 years, interest rates have varied widely. The rate for a 30-year mortgage reached a high of 14.75% in July 1984, and it reached 4.64% in October 2010. 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 $125,000. Assume that we can make a down payment of $25,000, so we need to borrow $100,000. We assume that our annual income is $43,000 and that we have no other debt. Assume that property taxes plus insurance total $250 per month.\r
\n" ); document.write( "\n" ); document.write( " If we can afford to pay a monthly amount of $753.33, what is the difference in the amount we can borrow between the high and low rates mentioned above? (Round your answer to the nearest dollar.)
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With a monthly affordable amount of $753.33, and with $250 deducted for property taxes and insurance, the amount remaining to pay the mortgage is $503.33 ($753.33 - 250)\r\n" );
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document.write( "With a  monthly mortgage payment of $503.33, over a 30-year period, and an annual interest rate of 14.75%, the amount that one can borrow is $40,445.\r\n" );
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document.write( "With a  monthly mortgage payment of $503.33, over a 30-year period, and an annual interest rate of 4.64%, the amount that one can borrow is $97,727.\r\n" );
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document.write( "The difference between these 2 mortgage loans is: $97,727 - 40,445 =

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