Impounds
Including your Taxes and Insurance With Your Mortgage Payment
When you have your mortgage set up, the mortgage consultant should ask if you would like to impound your account. That simply means if you would like to add your annual tax and insurance payment to your monthly mortgage payment. This is how it would work:
Example:
Mortgage Payment = $2,450.00 per month
Annual Taxes = $3,155.00/12 = $262.91 per month
Annual Insurance = $750.00/12 = $62.50 per month
Total Monthly Payment = $2,775.41
So if you set up your mortgage with an impound account you’ll pay $2,775.41 and if you don’t (and you pay these bills separately) you’ll pay $2,450.00. It depends on the homeowner and which is a better fit.
Kevin O’Connor
www.koloans.com
Mortgage Consultant
800.550.5538
California Mortgage Purchase Refinance
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