Impound & Prepaid Estimator
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.
Quick Check — Tax Impound Months
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.
Your Scenario
Estimated Prepaids & Impounds
Can Impounds Be Waived?
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.
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A licensed broker can confirm them against real programs — no consultation fees, ever.
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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 Financial Institutions Division, 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.
Impound and Prepaid Estimator Questions
What are impounds and prepaids?
Prepaids are costs paid at closing for expenses that come due after closing: interest from your funding date to month end, the first year of homeowners insurance, and sometimes property taxes. Impounds, also called escrow reserves, are the starting balance your servicer collects so it can pay taxes and insurance when they come due.
Why do impounds change depending on my closing date?
Property taxes are billed on a fixed calendar, so how many months your servicer needs to collect up front depends on when your first payment lands relative to the next tax due date. Closing a few weeks earlier or later can move the reserve by several months of taxes.
Can I waive the impound account?
On many conventional loans with enough equity you can, sometimes for a small pricing adjustment. FHA, VA, and USDA loans generally require an escrow account. Waiving means you pay taxes and insurance yourself when they are due, so budget accordingly.
Are impounds a cost of the loan?
No. Impounds are your own money set aside for bills you would owe anyway, and any surplus is returned when the loan pays off. They affect cash to close, not the price of the loan, which is why this estimator shows them separately from fees.