A homeowner's monthly mortgage payment often includes or combines sums of money for payment of property taxes and casualty insurance with the sum for principal and interest on the mortgage.

Question

A homeowner's monthly mortgage payment often includes or combines sums of money for payment of property taxes and casualty insurance with the sum for principal and interest on the mortgage. ​

Quizplus · Accepted Answer

This is known as an escrow account, where the lender collects additional funds with the mortgage payment to pay for property taxes and insurance premiums on behalf of the homeowner.

A Homeowner's Monthly Mortgage Payment Often Includes or Combines Sums