Question

A home worth $123,000 and a mortgage of $72,400 would have equity of $____?____. A home with an assessed value of $178,000 with a tax rate of $52 per $1,000 would have a property tax bill of $____?

Answer 1

The equity of the home worth $123,000 with a mortgage of $72,400 is $50,600. The property tax bill for the home with an assessed value of $178,000 and a tax rate of $52 per $1,000 is $9,256.

Step-by-step explanation:

To calculate the equity of a home, you subtract the amount still owed on the mortgage from the market value of the house. In the scenario provided, the home is worth $123,000 and the mortgage is $72,400.

So the equity would be calculated as follows:

Equity = Market Value of Home - Mortgage Owed

Equity = $123,000 - $72,400

Equity = $50,600

The home would have an equity of $50,600.

Next, to calculate the property tax bill, multiply the assessed value of the home by the tax rate per $1,000 of assessed value.

Given an assessed value of $178,000 and a tax rate of $52 per $1,000, the property tax would be:

Property Tax = Assessed Value / 1,000 x Tax Rate

Property Tax = $178,000 / 1,000 x $52

Property Tax = $178 x $52

Property Tax = $9,256

Thus, the property tax bill would be $9,256.