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Answers (2)
- Wayne Brown, "SDMortgagefinder"
- Contributions:1433
Your lender will collect a monthly allotment to cover both your taxes and insurance. Usually at the time of set up, they will want a one or two month cushion plus a prorated number of months taxes.
Lenders closing now with impounds are collecting 10 months or more in taxes and insurance. A full year insurance plus one or two months if it is a purchase transaction.
Good Luck
Lenders closing now with impounds are collecting 10 months or more in taxes and insurance. A full year insurance plus one or two months if it is a purchase transaction.
Good Luck
- sunnyview
- Contributions:25139
The bank collects the money throughout the year and then uses the funds in the impound account to directly pay your taxes and insurance. They send it directly. You do not get the money back at any point. If the taxes go up or the insurance goes up, the bank increases the amount of your monthly impound to cover the increase.
How does an impound account work?
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