Finance
What is the primary purpose of a mortgage 'escrow account' (impound account) held by a Mississippi lender?
ATo hold the earnest money until closing
BTo collect and pay property taxes and insurance premiums on the borrower's behalf✓ Correct
CTo fund the borrower's home repairs
DTo hold excess equity for the borrower
Explanation
A mortgage escrow (impound) account collects a portion of the estimated annual property taxes and insurance premiums with each monthly mortgage payment, then pays these expenses when they are due.
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