Mortgage Glossary
Impound Account
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
An impound account is another name for an escrow account, where the servicer collects and pays your taxes and insurance.
What Impound Account means
The terms are interchangeable; impound is more common out west, escrow in Florida. A portion of each payment funds the account so annual bills are covered.
Florida example
A Florida borrower's monthly payment includes an impound amount for the county tax bill and the wind insurance premium. The servicer reconciles the account yearly and adjusts the payment if costs rise.
Related Mortgage Terms
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