Explanation:
there is no interest and such involved. it is a straight forward calculation to allow the lender to accumulate enough funds (= the ESCROW account as part of the mortgage account structure) to be able to pay the taxes once a year on behalf of the owners.
so, the tax is $1.50 for every $100 of the assessed value of the house.
how many $100 units are in that value ?
180,000 / 100 = 1,800 units.
that means the tax for that house is
1800 × 1.5 = $2,700
in order for the lender to accumulate $2,700 in the ESCROW account in a year (= 12 months), the monthly contribution has to be
2700 / 12 = $225.00