The DiMora Team are real estate experts in the Novi and Northville neighborhoods and sometimes buyers ask us what an impound account is. This is a special bank account held by the lender to collect monthly payments from the borrower to pay property taxes, mortgage insurance and hazard insurance. These accounts also are called escrow or reserve accounts. Lenders like to set up impound accounts to ensure the property taxes and insurance will be paid on time. They typically also collect a two-month cushion for taxes and insurance at the closing. Impound accounts are not required for all mortgage loans though. They can be waived on a conventional loan if the loan amount is 80% or less of the purchase price, although the lender might charge you additional points for this option. Check out below to see what sold in Beckenham in November 2017:
47589 Brittany Court, Novi: 4 bedrooms, 4.1 bathrooms, 3,623 sq. feet, 3 car garage, Sold Price: $695,500
Beckenham Home Sold
November 2017
47483 Beckenham Blvd., Novi: 4 bedrooms, 4.2 bathrooms, 4,777 sq. feet, 3 car garage, Sold Price: $700,000
Beckenham Home Sold
November 2017
One way to avoid an impound account on an owner-occupied mortgage is to raise your down payment amount slightly. The exact amount necessary to avoid the escrow will vary with the lender. For more information on Beckenham, or similar Northville or Novi neighborhoods such as Woodlands of Northville, Ravines of Northville and Steeplechase, contact The DiMora Team today at 248-505-7728 or jim@dimora.com.