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You are here: Home / Buyers / Key Term Tuesday: Escrow Account

Key Term Tuesday: Escrow Account

January 1, 2018 By Rebecca Jacks

We understand how frustrating it can be to search for a home in Austin. Half the battle is learning the key terms and what they mean in regards to Texas real estate. So each week we bring you Key Term Tuesday – our way of helping you decode the industry jargon that keeps you from owning your home search.

Escrow Account

What is an Escrow Account?

An escrow account (aka impound account or reserve account) is a trust fund account set up by the mortgage lender to pay certain fees associated with home ownership.

These fees typically include things like property taxes and homeowner’s insurance premiums and, if applicable, private mortgage insurance premiums (PMI). The buyer (borrower) pays monthly into the impound account a pro-rata amount to cover these recurring costs. Escrow accounts provide a degree of certainty for both the lender and the borrower that the property taxes and insurance premiums will be paid on time when they come due.

Lender’s will usually require an impound account when a buyer’s down payment is less than 20%. Impound accounts are optional with more than 20%.

Looking for a Real Estate Expert?

Our team has a combined 55+ years of experience helping home buyers understand the r. Check out our approach to Buying a Home in Austin to learn more about our team and how we work. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation consultation.

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Filed Under: Buyers Tagged With: Buyer Tips, First Time Home Buyers, Frequent Buyer Questions, Real Estate Key Terms, Seller Tips

About Rebecca Jacks

Rebecca has founded her success in real estate on a commitment to personalized service. Clients appreciate her dedication to not only the success of their transaction, but their very peace of mind. She is particularly adept at creating bridges to make home buying and relocation as seamless as possible.

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Raymond Stoklosa – Broker/Owner, CRS

Raymond Stoklosa is the Chairman and Managing Broker of Eleven Oaks Realty. Raymond has been a respected authority in residential real estate since 1978. Having sold more than $150 million worth of real estate... Read More…

Rebecca Jacks – CRS, ABR, SFR

Rebecca Jacks is the Chief Operating Officer of Eleven Oaks Realty. She specializes in relocating buyers and home sales in Austin and surrounding suburbs. Rebecca brings a passion for customer-service to the leadership team. Read More…

Cassandra Stoklosa – MBA

Cassandra joined Eleven Oaks Realty following a successful career managing digital campaigns at several household brands including Walmart, L’Oreal, and Golfsmith. She has also worked in real estate marketing in three of the hottest markets in the U.S. – New York City, San Francisco and Austin. Read More…

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