Need help on real estate question X's 2?

Question

1st question: The city tax rate is 9.25 mills, the county tax rate is 8.5 mills and the school board tax rate is 5.5 mills. A home is valued at $350,000 and is located within the city limits. The home is assessed at 85$ of value. The homeowner qualifies for a $25,000 homestead exemption. What is the cost if the the property taxes?

2nd Question: Buyers have obtained a mortgage loan of $122,000 at 81/2% interest. The loan will be amortized by equal monthly payment of $938.07 over 30 years that include principle and interest. How much of the buyers second month's payment will be applied to the principle?

Please inform me as to how you acquired your answer. Thank you.

Answer 1

1.  $1395.  The first $25k of assessment is not taxed due to the homestead exemption, leaving $60k of taxable assessed value. The total mil rate is 23.25.   60,000 divided by 1000 times 23.25 = $1,395.

2.  $74.42.  If you have a financial calculator with Amortization function, it will find it for you.  Here's the "old school" way":

Each month the first part of the payment goes to pay the interest accrued for the month on the outstanding balance.  The rest of the payment goes to pay down principal.

For the first month, $864.16 goes to interest (122,000 x .085 / 12), and 73.91 goes to principal, leaving a new balance of 121,926.09

The second month, $863.64 goes to interest (121,926.09 x .085 / 12), and the rest of the payment ($74.42) goes to principal.

Anyone with basic spreadsheet skills should be able to build an amortization table, or there are several on-line tools -- see the link below.

Answer 2

first, I make sure i am on the same page as the county. I ask

them what mils equals; I do  not presume.

Why do you presume the buyer has a 2nd mortgage?

Answer 3

Someone forgot to pay attention in class, and now wants people to help with his homework it seems..

Good luck buddy, but next time try posting the question as if you were the person in need of advice.. Its clear as day that this is a homework question..