Setting up Impounds

The chart below shows how many months of Tax Impounds are required, should you choose to have an impound account with your loan.

Hazard Insurance Policies
A purchase transaction requires the 1st year’s premium to be paid in advance at the time of the closing. You will also be required to have a 2-months reserve to be deposited into the Escrow Impound account.
For a refinance, there must be 6-months remaining on the existing hazard insurance policy. If there is less, you will be required to pay a full year’s premium at the close of Escrow, plus 2-months reserve to be deposited into the Escrow Impound Account.

Funding Month	First Payment	Impounds Collected @ Closing
November	January	4 Months Plus 1st Half Paid
December	February	5 Months Plus 1st Half Paid
January	March	2nd Half Taxes Due Plus 2 Months
February	April	2 Months
March	May	2 Months
April	June	3 Months
May	July	4 Months
June	August	5 Months
July	September	6 Months
August	October	7 Months
September	November	8 Months
October	December	1st Half Taxes Due Plus 3 Months