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What is an escrow or impound account?
What is an escrow or impound account?

Escrow account defined

Gregory avatar
Written by Gregory
Updated over a week ago

An escrow account, sometimes called an impound account depending on where you live, is set up by your mortgage lender to pay certain property-related expenses (generally, property taxes and homeowners insurance).

Having your mortgage servicer hold your property tax and homeowners insurance payments in escrow ensures that those bills are paid on time, automatically. In turn, you avoid penalties such as late fees or potential liens against your home.

Learn more in this article.

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