What is 'escrow impound account' and what does it cover in a Delaware mortgage?
Why A lender-held account into which the borrower makes monthly deposits for property taxes, homeowner's insurance, and sometimes PMI Is Correct
Answer B: A lender-held account into which the borrower makes monthly deposits for property taxes, homeowner's insurance, and sometimes PMI
Exam Tip: Finance
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Key Finance Terms in This Question
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
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Key Terms to Know
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Math Concepts
State-Specific Concepts
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