Question

16. Terry has a monthly mortgage payment of $979. Her annual property taxes are

$1200, her PMI is $62/month, and her homeowner's insurance is $800 per year. How

much is deposited into Terry's escrow account each month?

Answer 1

$228.67

Explanation:

Given that:

Terry has a monthly mortgage payment of $979.

Terry's annual taxes are $1200 per year. That implies that his escrow each month require to posses 1/12 of that amount.

i.e 1/12 × 1200 = $100 per month.

For his homeowner's insurance which is $800 per year,

His escrow account each month is = 1/12 × 800 = $66.67

PMI = $62 per month.

Thus: The amount that is deposited into Terry's escrow account each month is the sum total of $100 + $ 66.67 + $62 = $228.67