Final answer:
To estimate Donna's total monthly housing expenses, we consider the mortgage on the $80,000 loan at 5 percent interest, plus 3 percent of the house's purchase price annually for additional expenses, which equals $250 per month. The precise mortgage payment would require further calculation or the use of online tools.
Step-by-step explanation:
Donna is considering the purchase of a house that costs $100,000. To calculate her estimated total monthly housing expenses, we need to consider both her mortgage payments and other housing costs. She plans to make a down payment of $20,000, which means she will need a mortgage of $80,000. The mortgage has an interest rate of 5 percent. Additionally, the average annual cost of owning a house beyond the mortgage is estimated to be 3 percent of the purchase price.
The mortgage payment can be calculated using a mortgage calculator or the appropriate formula for monthly mortgage payments, but here we will provide an estimate. The annual expenses beyond the mortgage would be 3 percent of $100,000, which amounts to $3,000. This is $250 per month. Therefore, Donna’s total estimated monthly housing expenses would be her monthly mortgage payment (which we will estimate as well) plus this additional $250.
For a precise monthly mortgage payment calculation, Donna could use online financial tools or consult with a financial advisor or a lender. The specifics of her mortgage repayment, such as the term of the loan and whether it is fixed or adjustable, will also impact her monthly payment.