What is an impound/escrow account?
An Impound Account or an Escrow Account (the terms are interchangeable – each used in different states) is the name of the account in which a lender collects payments you make toward your property taxes and hazard/fire insurance. If you have an Impound/Escrow account, each of your monthly payments will contain a fraction of your annual property tax and insurance costs. Your lender keeps these funds in the Impound/Escrow Account and then pays your taxes and insurance directly when they become due. An Impound/Escrow Account can be a convenient and trouble-free manner of ensuring that your insurance and tax payments are made on time. Additionally, choosing the convenience of an Impound/Escrow Account allows us to offer you a better rate or lower fee. Please note that Impound/Escrow Accounts are mandatory for Purchase or Refinance Loans where the loan amount is 80.01% or more of the property value (Loan-to-Value ratios of 80.01% or more), unless otherwise restricted by laws in your propert
Instead of paying large, lump sums to cover the costs of homeowner’s insurance and property taxes, these payments are divided into installments which are paid to the lender monthly along with your loan principal and interest. The lender will hold the money in an impound/escrow account and make the payments from the account when they are due. Impound/escrow accounts may be optional, or they may be required by the lender, depending on the location of the property, the size of the loan in relation to the value of the property, and the loan type. Escrows are mandatory without at least 20% down payment.
Instead of paying large, lump sums to cover the costs of homeowner s insurance and property taxes, these payments are divided into installments which are paid to the lender monthly along with your loan principal and interest. The lender will hold the money in an impound/escrow account and make the payments from the account when they are due. Impound/escrow accounts may be optional, or they may be required by the lender, depending on the location of the property, the size of the loan in relation to the value of the property, and the loan type.
Instead of paying large lump sums to cover the costs of homeowner’s insurance and property taxes, these payments are divided into installments which are paid to the lender monthly along with your loan principal and interest. The lender will hold the money in an impound/escrow account and make the payments from the account when they are due. Impound/escrow accounts may be optional, or they may be required by the lender depending on the location of the property, the size of the loan in relation to the value of the property, and the loan type.
Instead of paying large, lump sums to cover the costs of homeowner’s insurance and property taxes, these payments are divided into installments which are paid to the lender monthly along with your loan principal and interest. The lender will hold the money in an impound/escrow account and make the payments from the account when they are due. Impound/escrow accounts may be optional, or they may be required by the lender, depending on the location of the property, the size of the loan in relation to the value of the property, and the loan type.
