An impound account or escrow account is set up by your lender upon the closing of your loan to handle property taxes, fire and hazard insurance premiums, mortgage insurance premiums, and any other escrow items.  An escrow account is designed to make sure that there is always enough money in a special account to pay bills as they become due.  These accounts are established to protect homeowners from having to come up with several large lump sum payments at different times throughout the year. 

Last updated on November 16, 2010 by Admin