What is an escrow/impound account?
An escrow account is set up at the time of closing for the purpose of paying future hazard insurance, property tax and mortgage insurance premiums each year. As part of your monthly mortgage payment, 1/12 of your combined premiums are collected for deposit into this account until we pay the premium on your behalf. Back to Top Q: How often is the escrow account analyzed? A: Your escrow account will be reviewed at least once a year. We will compare the monthly deposits into your escrow account to the projected payments to be made from your escrow account.
Also known as an “escrow account,” this is an account established with a select investor to pay your property taxes, homeowner’s insurance, flood insurance (if required) and mortgage insurance (if required) when they become due. If you have an escrow/impound account, then your regular monthly mortgage payment will include principal, interest and an escrow payment. Your escrow payment is based on 1/12th of the annual estimated payments for your property taxes, homeowner’s insurance, flood insurance (if required) and mortgage insurance (if required).
