What is an escrow/impound account?
An escrow account, known as an impound account in California, is an account set up at the time you close your loan for the payment of your property taxes and homeowner’s insurance. You pay 1/12 of your annual taxes and insurance along with your mortgage payment each month and the funds are placed in the escrow/impound account. Your loan servicer pays your taxes and insurance out of the escrow/impound account when they come due. You receive an Escrow/Impound Analysis Statement each year, showing the activity and balance remaining in the account.
You are not required to have an escrow/impound account unless the Loan-to-Value ratio on your loan is over 80% (89.99% in California).
There is no advantage in having one or not, it’s just a matter of preference.
- Can Empire of America finance the purchase of a property through a short sale?
- Do you have any programs that don’t require income documentation?
- Can I apply before I find a property and get pre-approved?
- Should I consider a loan with private mortgage insurance (PMI)?
- What is the minimum down payment required on a purchase mortgage?
- What is the maximum percentage of my home’s value that I can borrow on a refinance loan?
- What is the maximum debt-to-income ratio allowed?
- Is paying off an existing second mortgage or home equity line considered cash out?
- Can I keep my existing second mortgage or home equity line and refinance my first mortgage?
- If my loan application isn’t pre-approved, does that mean you can’t provide me with financing?
- What is your minimum credit score requirement?
- Am I able to refinance a property that was recently listed for sale?
- What is the difference between a conforming loan, a super conforming loan and a jumbo loan?
- What is an ARM?
- What is a subordination agreement?
- What is a three day right to cancel?
- What is title insurance and why do I need it?
- What is prepaid interest?
- What is the difference between an Interest Rate and an APR?
- Can I prepay the loan without a penalty?
- What happens after I apply?
- What supporting documentation is required?
- How quickly can you close my loan?
- What is your rate lock policy?
- Are any fees collected when I lock?
- What if rates drop after I’ve locked?
- What happens if the loan process takes longer than my lock period?
- Can I choose a different program or rate after I’ve locked?
- Can I relock my rate if I cancel and reapply?
- If rates fall after I’ve locked, will you lower my rate?
- Should I lock or float my rate?
- What are included in your closing costs? What are pre-paids & are they different from closing costs?
- Why do you charge a Lender Fee?
- Should I pay discount points?
- What is a rebate/credit?
- When will I hear from someone after my inquiry/application?
- How can you offer such low rates?
- Is there a fee or any obligation if I apply?