What is the monthly tax contribution required by a lender for a property bought for $195,000 with an assessed value of $180,000 at a tax rate of $1.50 per $100?

To determine the monthly tax contribution required by the lender, we first need to calculate the annual property taxes based on the assessed value and the tax rate.

1. The assessed value of the property is $180,000.
2. The tax rate is $1.50 for every $100 of assessed value.

To find the annual property tax, we convert the assessed value to the appropriate format for the tax rate:

• Divide the assessed value by 100 to adjust for the tax rate.
• Calculate: $180,000 / 100 = 1,800.

Next, multiply this result by the tax rate:

• Annual tax = 1,800 * $1.50 = $2,700.

Now, to find the monthly tax contribution, divide the annual tax by 12:

• Monthly tax = $2,700 / 12 = $225.00.

The correct answer represents the monthly amount the lender would expect for property taxes based on the assessed value and the specified tax rate. This is important for homebuyers and investors to understand their ongoing costs associated with a property when calculating affordability and cash flow.