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Impound Account

Impound Account also known as an Escrow account is a special account that mortgage lenders use to hold borrower's monthly payments toward property taxes and insurance. Instead of paying for the property tax and insurance payments in one lump sum, borrowers can pay for them as part of their monthly mortgage payment. Mortgage lenders collects these payments in borrower's escrow account, and when the tax and insurance bills become due, the lender makes the payment on borrower's behalf.

Synonyms:
Escrow Account
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