What is an impound account ?

An impound account is also known as an escrow account and is required by lenders in most states, particularly when the amount you are borrowing represents a large percentage of the property's market value. When an escrow or impound account is required, you can often waive the use of an impound account for the hazard homeowner's insurance and property taxes for a fee. You will always have to prepay your mortgage insurance payments (if any) into an impound account.