Fixed Rate Mortgage Impound Account

What is a Fixed Rate Mortgage with an Impound Account?

Even though you have a Fixed Rate Mortgage, your monthly payment may vary if you have an “Impound Account”:

• An impound account is an account that is set up to pay property taxes and homeowners insurance, on your behalf. These costs are broken down into monthly installments and added to your mortgage payment each month. These funds are deposited into an "Impound Account" and are then used to pay these expenses when they are due.
• Certain types of loan transactions require an impound account to be established, If the Lender does not require an impound account you can request a voluntary impound account to be set up on your behalf.
• Keep in mind that property taxes and homeowner's insurance premiums change, and when that happens the monthly payment will be adjusted accordingly.