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Donna is thinking about buying a house that costs $250,000. If she puts down $50,000 and is able to get a 5 percent
mortgage, she wants an estimate of her total monthly housing expenses. The average annual cost
for owning a house is 4.09 percent of the value of the house. If we do not include the opportunity cost of the down
payment, amortization on the loan or any tax benefits from homeownership, what will be her monthly cost the first
month?​

Respuesta :

jepessoa

Answer:

$1,685.41

Explanation:

we need to calculate:

  • monthly interest payment on the mortgage for the first month
  • monthly cost of owning a house

monthly interest payment on the mortgage for the first month = $200,000 x 5% x 1/12 = $833.33

monthly cost of owning a house = $250,000 x 4.09% x 1/12 = $852.08

total monthly cost = $833.33 + $852.08 = $1,685.41

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