Impound
What is 'Impound'
An account maintained by mortgage companies to collect amounts such as hazard insurance, property taxes, private mortgage insurance and other required payments from the mortgage holders; these payments are necessary to keep the home but are not technically part of the mortgage. Impound accounts are often required of borrowers who put down less than 20%, but are usually optional in other cases. The purpose of the impound account is to protect the lender. Because low down-payment borrowers are considered high risk, the impound account assures the lender that the borrower will not lose the home because of liens or loss, as the lender pays insurance, taxes, etc. from the impound account when they are due.
Explaining 'Impound'
Though the impound account is designed to protect the lender, it can also help the mortgage holder. By paying for these big-ticket housing expenses gradually throughout the year, the borrower avoids the sticker shock of paying large bills once or twice a year, and is assured that the money to pay those bills will be there when they need it. However, if the mortgage company does not pay these bills when they are due, the borrower will be held responsible, so borrowers should keep an eye out to make sure their mortgage companies are fulfilling their end of the bargain.
Further Reading
Financial analysts, insider information and efficiency of capital market: Evidence from relative amount of the firm-specific information impounded into stock prices in …
en.cnki.com.cn [PDF]
This paper shows empirically that financial analysts can increase the firm-specific information embedded in stock prices, and thus promote A-share market efficiency. However, as the quality of information disclosure for listed company deteriorates, additional …
en.cnki.com.cn [PDF]
This paper shows empirically that financial analysts can increase the firm-specific information embedded in stock prices, and thus promote A-share market efficiency. However, as the quality of information disclosure for listed company deteriorates, additional …
www.sciencedirect.com [PDF]
This paper shows empirically that financial analysts can increase the firm-specific information embedded in stock prices, and thus promote A-share market efficiency. However, as the quality of information disclosure for listed company deteriorates, additional …
www.sciencedirect.com [PDF]
This paper shows empirically that financial analysts can increase the firm-specific information embedded in stock prices, and thus promote A-share market efficiency. However, as the quality of information disclosure for listed company deteriorates, additional …
papers.ssrn.com [PDF]
This paper shows empirically that financial analysts can increase the firm-specific information embedded in stock prices, and thus promote A-share market efficiency. However, as the quality of information disclosure for listed company deteriorates, additional …
www.sciencedirect.com [PDF]
This paper shows empirically that financial analysts can increase the firm-specific information embedded in stock prices, and thus promote A-share market efficiency. However, as the quality of information disclosure for listed company deteriorates, additional …
www.sciencedirect.com [PDF]
This paper shows empirically that financial analysts can increase the firm-specific information embedded in stock prices, and thus promote A-share market efficiency. However, as the quality of information disclosure for listed company deteriorates, additional …
papers.ssrn.com [PDF]
This paper shows empirically that financial analysts can increase the firm-specific information embedded in stock prices, and thus promote A-share market efficiency. However, as the quality of information disclosure for listed company deteriorates, additional …
books.google.com [PDF]
This paper shows empirically that financial analysts can increase the firm-specific information embedded in stock prices, and thus promote A-share market efficiency. However, as the quality of information disclosure for listed company deteriorates, additional …
journals.sagepub.com [PDF]
This paper shows empirically that financial analysts can increase the firm-specific information embedded in stock prices, and thus promote A-share market efficiency. However, as the quality of information disclosure for listed company deteriorates, additional …
www.sciencedirect.com [PDF]
This paper shows empirically that financial analysts can increase the firm-specific information embedded in stock prices, and thus promote A-share market efficiency. However, as the quality of information disclosure for listed company deteriorates, additional …
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Q&A About Impound
What is an impound account?
An impound account is a mortgage company account that collects hazard insurance, property taxes, private mortgage insurance and other required payments from the mortgage holder.
How does having an impound account protect the lender?
The lender pays for insurance, taxes and other bills from the impound account when they are due. This protects them in case of loss or liens on the home.
Why do some borrowers need to have an impound account?
Borrowers who put down less than 20% of the home's value are considered high risk by lenders and therefore must pay for these big-ticket housing expenses gradually throughout the year.
How can having an impound account help a borrower?
By paying for these big-ticket housing expenses gradually throughout the year, borrowers avoid sticker shock of paying large bills once or twice a year. They also know that money will be there when they need it.
Who should keep an eye out to make sure their mortgage companies are fulfilling their end of the bargain?
Borrowers should keep an eye out to make sure their mortgage companies are fulfilling their end of the bargain.