An impound (escrow) account collects property taxes and insurance alongside your monthly payment, and lenders collect several months of both upfront at closing. Estimate your prepaid items and monthly impounds below so closing day doesn’t surprise you.
Estimate the prepaid interest, property tax impounds, and insurance reserves collected at closing — based on your state's property tax calendar and your estimated close of escrow date.
Just need the short answer? Pick a state and closing month to see how many months of property taxes are typically collected at closing. For the full picture with dollars, use the estimator below.
Sometimes — it depends on the loan program and your equity. On many conventional loans with at least 20% down (80% loan-to-value or lower), lenders may allow you to waive the escrow (impound) account and pay taxes and insurance on your own. Some states set their own thresholds — California, for example, generally limits when lenders can require impounds on loans at or below 90% loan-to-value.
Government-backed loans work differently: FHA, VA, and USDA loans generally require an escrow account for the life of the loan. And when a waiver is allowed, lenders may apply a small pricing adjustment for waiving escrows.
Not sure which way to go? Ask your loan officer to price it both ways — it's a quick conversation, and there's never a fee to talk.
A licensed broker can confirm them against real programs — no consultation fees, ever.
To save a clean, complete copy of your calculator results, head back to the page and tap “Download my results” — we’ll unlock a print-ready version with all of your numbers, free.
eurekamortgage.net · 503-420-5434 · info@eurekamortgage.net · No consultation fees, ever
Eureka Mortgage Planning LLC – NMLS #2456819. Equal Housing Lender. Licensed by the Oregon Division of Financial Regulation, Idaho Department of Finance, California Department of Financial Protection and Innovation (CFL), Washington State Department of Financial Institutions, Arizona Department of Insurance and Financial Institutions, Texas Department of Savings and Mortgage Lending, New Mexico Mortgage Finance Authority, Nevada Division of Mortgage Lending, Florida Office of Financial Regulation, and Tennessee Department of Financial Institutions. This is not a commitment to lend. All loans are subject to underwriting and approval. Terms, rates, and programs are subject to change without notice. Not all loan products are available in all states. For licensing information, go to http://www.nmlsconsumeraccess.org.
