An impound/escrow account is an account maintained by your lender that is used to pay property taxes and hazard insurance as those items come due. Each month, when you make your mortgage payment, your lender will set aside a portion of the payment and deposit it in your escrow account. The account is maintained in your name and is your money, however, unless you are to refinance or payoff your mortgage, those funds are not accessible other than for the payment of property taxes or hazard insurance. An impound/escrow account is a tool to help borrower’s budget for these expenses and may be required by your lender in certain instances.
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