The Fitzburgh Realty Team - Glassell Park Real Estate - Northeast Los Angeles Realtor
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What is an Escrow Impound Account?
An Impound Account, also known as an Escrow Impound Account, is an account set up and managed by mortgage lenders to pay property taxes and insurance on behalf of the home buyer.  Accounts are set up with the lender during escrow to ensure that the home buyer's property taxes and insurance are paid on time and in full.  After escrow collects the initial deposit for the Impound Account and after the transaction is closed, the escrow company is no longer involved.


How It Works: Each month, an amount equal to about 1/12 of the total sum of the annual property taxes and insurance due is collected from the buyer, along with their mortgage payment, and placed in the account.  When the time comes to pay the annual property taxes and insurance, the lender makes the payment from the funds in the account on the behalf of the buyer.
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Setting up an Account: Accounts are set up by the mortgage lender during escrow. Escrow collects an Escrow Impound Deposit, typically a deposit of 2-6 months worth of taxes and insurance.  This deposit ensures there are sufficient funds to make the payments when they are due.

Common Questions Regarding an Escrow Impound Account:

Is it mandatory to have an Escrow Impound Account? 
No. The buyer may elect to pay property taxes on their own, and there is usually a small fee when waiving the account.  Based on the type of loan, the lender may require the buyer to have one.

Is it a good idea to have an Escrow Impound Account? 
Since property taxes and home insurance bills only come about twice a year, many homeowners have a hard time saving for them. This is one less thing to worry about, as the lender makes the payments for the buyer.
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Brian Fitzburgh, Broker/Owner
Cell: (818) 571-9712
Office: (424) 625-0747

Hello@BrokersTrust.com
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2022 Zillow Premier 5 Star Agent in Los Angeles. Parrish Ave., Los Angeles, CA. CalDRE# 01875767. Copyright © 2022 Brokers Trust Real Estate Group. All Rights Reserved.
  • Home
  • About Us
    • Fitzburgh Realty Team >
      • Juan Loza Handyman
    • Brians Resume | Sellers
    • Brians Resume | Buyers
    • Home Tours
    • Testimonials
    • Upcoming Events
  • Search Homes
    • 4140EagleRock
  • Explore NELA
    • Glassell Park
  • Homes Fur All
    • News
    • Super A Test
    • Bark & Meow Fan Club
    • Concerts in the Park
    • Eagle Rock Bark >
      • ERB Walk At The Bark
      • Eagle Rock Bark 2017
      • Eagle Rock Bark 2018
      • Eagle Rock Bark 2019
    • Glassell Bark >
      • GB Walk At The Bark
      • Glassell Bark 2017
      • Glassell Bark 2018
      • Glassell Bark 2019
    • Glassell Park Easter Egg Hunt
    • GLASSELL PARK TREE LIGHTING >
      • XMAS TREE LIGHTING 2017
      • XMAS TREE LIGHTING 2018
    • Growing Caring Sharing News
    • 4 Weeks 4 Life
    • Fostering Resources
    • Pet Food Drive
    • Pet Resource Guide
    • Pet Adoption Hall of Fame
    • Spread The Word
    • Super Party >
      • Super Party Photos
  • Resources
    • Brian' s Crystal Ball >
      • Brian' s Crystal Ball Appetizer
      • Brian' s Crystal Ball 1st Main
      • Brian' s Crystal Ball 2nd Main
      • Brian' s Crystal Ball Dessert
      • Furball Challenge
    • First Time Homebuyers >
      • Credit Score
      • Down Payment
    • Get Your Loan Pre-Approval
    • Request a Free Market Analysis
    • Mortgage Calculator & Rates
    • How Much House Can I Afford
    • Real Estate Market Trends
    • Neighborhood Search Tools
    • MLS Activity Alert
    • Client Documents & Calendar
    • FAQ
  • Brian's Blog
  • Contact us
    • Coverage Area