What is Escrow Impounds?

What is Escrow Impounds? This is NOT to be confused with the Escrow process. Your servicer, the company that collects your monthly mortgage payment, calls it, "Escrow Account or Impounds”. Part of your agreement when you signed the loan documents, that your servicer was going to collect with your monthly mortgage payment which included your Hazard Insurance, Property Taxes and Mortgage Insurance. Your servicer collects this in advance and when they get the annual invoice, they pay your Insurance, Taxes and Mortgage Insurance.

Now, the questions that many people ask me:

1.) If I have a fixed rate, why did my Mortgage Payment change?

The answer is, your Hazard Insurance and Property Taxes changed. More or likely, they went up, therefore by law, the servicer has to change your monthly payment

2.) Can I get rid of my Impound account?

In most cases yes. But typically, you will have to check with your servicer.