FinancePregunta 82 de 100

The account in which a lender holds a portion of a borrower's monthly payment to pay property taxes and insurance is the:

a.Escrow (impound) account
b.Acceleration account
c.Amortization account
d.Discount account

Explicación

An escrow or impound account is where the lender collects a portion of taxes and insurance with each monthly payment and pays those bills when due. This ensures property taxes and hazard insurance stay current. The account is analyzed periodically and adjusted.

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