Question

An account held by the mortgage lender and used to cover property taxes and homeowner's insurance...

An account held by the mortgage lender and used to cover property taxes and homeowner's insurance is known as a(n)?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

An account held by the mortgage lender and used to cover property taxes and homeowner's insurance is known as an escrow account. An escrow account is also called as an impound account. in an escrow account, money is deposited from our monthly mortgage payments. The expenses of property taxes and homeowner's insurance are paid into this account through mortgage servicer or lender on our behalf (money is deposited by us and the account is managed by servicer or lender).

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
11. A lender requires that the monthly mortgage payment include 1/2 of the annual taxes. Property...
11. A lender requires that the monthly mortgage payment include 1/2 of the annual taxes. Property value is $100,000. The assessment ratio is 30%. School tax rate is 12 mills; county tax rate is 25 mills. What is the tax payment per month? 12. A property is assessed at $80,000. The tax rate is $26 per $1,000 with a 2% discount for promptness and an 18% per annum charge for delinquency. A. Determine the amount owed if taxes are paid...
James has a mortgage of $98,500 at 8% for 15 years. The property taxes are $3,900...
James has a mortgage of $98,500 at 8% for 15 years. The property taxes are $3,900 per year, and the hazard insurance premium is $764.50 per year. Find the monthly PITI payment (in $). (Round to the nearest cent.)
Mrs. Stuart paid the following taxes: Local property tax on: 20 acres of land held for...
Mrs. Stuart paid the following taxes: Local property tax on: 20 acres of land held for investment $ 1,500 Condominium used as principal residence 2,825 Sailboat used as vacation residence 1,975 Florida sales tax on consumer goods 3,400 Federal employee payroll tax on salary 15,200 Federal income tax 30,800 To what extent (if any) can Mrs. Stuart deduct each of these payments? local property tax on: 20 acres of land held for investment = condominium used as principal residence =...
Insurance $ 3,300 Mortgage interest 6,750 Property taxes 4,250 Repairs and maintenance 640 Utilities 4,200 Depreciation...
Insurance $ 3,300 Mortgage interest 6,750 Property taxes 4,250 Repairs and maintenance 640 Utilities 4,200 Depreciation 20,400 During the year, Alexa rented out the condo for 180 days. Alexa’s AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume there are 365 days in the year. Assume that in addition to renting the condo for 180 days, Alexa uses the condo for 8 days of personal use. Also...
Jason Bradley’s uncle, Maurice, is buying a $248,500 home in Mississippi. His mortgage lender requires a...
Jason Bradley’s uncle, Maurice, is buying a $248,500 home in Mississippi. His mortgage lender requires a 20% down payment and will finance the remainder for 30 years at 5%. Closing costs will be 1% origination fee, 1 ¼ point, mortgage insurance premium of $2,400. Other loan costs will include a pest inspection fee of $175, appraisal fee of $295, credit report fee of $80, title insurance premium of $320, and recording fees of $65. There will also be money collected...
4.Which of the following statements is true about Creditor insurance? Coverage remains the same as the...
4.Which of the following statements is true about Creditor insurance? Coverage remains the same as the mortgage balance declines Transferable to a new lender The lender is the beneficiary Individual underwriting All of the above 5.Flexible/discretionary expenses include: Loan & mortgage payments Travel & Leisure Taxes Housing expenses 6.To determine a client’s income a Financial Advisor will need to assess the following documents: Insurance policy Pay Stub / Statement Investment account statements All of the above b & c
You are buying a property costing of $750,000 by taking a mortgage to cover the entire...
You are buying a property costing of $750,000 by taking a mortgage to cover the entire purchase price. The nominal interest rate is 6% per annum compounded monthly. The bank offers 3 options for the structure of the repayments. Option 3: Month-end-instalments of $Y will be made for the first 5 years. Then the bank offers you a payment free period (i.e., no repayments required) of 5 years. After that, the remaining balance will be repaid over 15 years by...
Felice bought a duplex apartment at a cost of $150,000. Her mortgage payments on the property...
Felice bought a duplex apartment at a cost of $150,000. Her mortgage payments on the property are $940 per month. Her real estate taxes total $1,440 per year, and insurance costs $900 per year. She estimates that she will spend $1,000 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities. Ignore income taxes, changes in equity value, and changes in property value. What monthly rent must she charge for each apartment...
As you are applying for your mortgage loan, you and the bank agree that your total...
As you are applying for your mortgage loan, you and the bank agree that your total mortgage payment will not exceed $1,640 for the loan payments and your Escrow payments, which include your property taxes, and your insurance payments. Your annual property taxes are $3,600 and your annual insurance bill is $480. The bank will agree to approve your loan for 30 years at 3.45% if you agreed to make a down payment of 5% and have your payment equal...
Costs associated with factory insurance, maintenance, rent, property taxes, and other similar items are typically included...
Costs associated with factory insurance, maintenance, rent, property taxes, and other similar items are typically included in manufacturing overhead and assigned to products: a.primarily based on whatever technique is easiest. b.based on a related cost driver that can be identified and measured. c.if not treated as a period cost. d,based on the relative sales revenue generated by the product.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT