What is an escrow or impound account for taxes and insurance?
An escrow or impound account is an account held by your mortgage lender to collect and pay property taxes and homeowners insurance on your behalf. Each month, a portion of your mortgage payment goes into this account, and the lender pays the bills when they come due. This spreads the cost throughout the year rather than requiring large lump sum payments. Some loan programs require an escrow account, while others make it optional. If you pay taxes and insurance yourself, you are responsible for making those payments on time directly to the Maricopa County Treasurer and your insurance company. The specifics depend on your situation and a licensed lender should confirm whether an escrow account is required or best for your loan, and Jon can connect you with one.
Specifics depend on your situation and should be confirmed with a licensed lender. Jon can connect you with one: text (623) 826-0888.
More on title, insurance and taxes
- How much is homeowners insurance in Phoenix and what does it cover?
- How do property taxes work in Arizona and how are they calculated?
- Do I need flood insurance in Phoenix?
- What is title insurance and do I need it?
- What is the difference between a home warranty and homeowners insurance?
- Do easements, solar leases or liens on title affect me?
Meet Jon Hegreness
Jon Hegreness
REALTOR / Associate Broker · Howe Realty
AZ License BR540940000
Full-time Phoenix North Valley REALTOR and Associate Broker with 24 years in Arizona residential real estate. A negotiator and problem solver who works the way you would want a friend in the business to work: direct, on your side, and steady through the parts that get complicated.