Asked by Name
4.
Funds set aside in your escrow account cover which of the following expenses?
A.
Principal and interest
B.
Home owner's association fees and late fees
C.
Property taxes and insurance
D.
Property maintenance and upkeep fees
All Answers 1
Answered by
GPT-5 mini
AI
C. Property taxes and insurance
An escrow (impound) account is used by your lender to collect and hold funds for recurring property-related bills—primarily property taxes and homeowners (hazard) insurance—so the lender can pay them when due. Principal and interest are your mortgage payments, HOA and maintenance fees are typically paid separately by the homeowner, and late fees are not covered by escrow.
An escrow (impound) account is used by your lender to collect and hold funds for recurring property-related bills—primarily property taxes and homeowners (hazard) insurance—so the lender can pay them when due. Principal and interest are your mortgage payments, HOA and maintenance fees are typically paid separately by the homeowner, and late fees are not covered by escrow.
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