What is an impound account?

Answer by  jossf3d (258)

Certain mortgages require the property taxes to be paid as part of the monthly payment. This can be a convenience to the borrower. The tax part of the payments are kept in an account known as an impound account so funds will be available when the taxes are due.

Answer by  BrianSJ (524)

An impound account is set up to collect up-front money paid to cover future property taxes, insurance, and other expenses. It is usually done for mortgages and similar loans.

Answer by  leize (222)

Mortgage lender established account to pay borrower's property tax and insurance costs. Mortgage payments are increased to include these costs, and funds collected are disbursed when payments are due.