Question

When a lender requires tax and/or insurance amounts to be deposited with the lender by placing the monies in an escrow account, a "Budget Mortgage or Deed of Trust" occurs. These escrow accounts may also be referred to as what?

Answer 1

The correct answer to the following question is impound or reserve accounts.

Step-by-step explanation:

Here the escrow account would also be know as impound or reserve account , and in this account a person would be required to put funds in this account ( given the person has made a minimum down payment) . Here the funds belong to the person but the lender would use this funds to make payments on property taxes, homeowner's or mortgage insurance.