What Is An Escrow Or Impound Account And How To Cancel It?

Around 80% of mortgage borrowers in the United States have an escrow or impound account. In fact, these accounts are required by some lenders.

These accounts hold money on behalf of the buyer to ensure certain payments are made on time - typically homeowners insurance and property taxes. This can help reduce liability and risk lenders take on, giving buyers access to better financing options.

What is an escrow or impound account? Is it required? More importantly, how do you cancel an escrow or impound account if you don’t actually need it? This article will dive into all of those questions to help you figure out whether or not an escrow account is a good move for you.