Annie's mortgage statement shows a total payment of ​$526.16 with ​$456.51 paid toward principal and interest and ​$69.65 paid for taxes and insurance. Taxes and insurance for three months were collected at closing.​ Now, after six months of​ payments, she is curious about the total in her escrow account. Calculate the amount for​ her, and explain the account.

An escrow account is typically set up by the lender to collect funds for property taxes and insurance. These funds are held in reserve until the payments for taxes and insurance are due, ensuring that the homeowner has enough saved to cover these costs. 

In Annie's case, since taxes and insurance are part of her monthly mortgage payment, $69.65 of her $526.16 total payment is set aside in this escrow account each month. Additionally, Annie had taxes and insurance for three months collected at closing, which means she already prepaid for those months. After six months of regular payments, we can calculate the total amount in her escrow account.

### Step-by-step calculation:

1. **Monthly contribution to escrow:**  
   $69.65 is the portion of each monthly payment that goes into the escrow account.

2. **Number of months paid:**  
   Annie has made 6 monthly payments, so the total escrow contributions from these payments would be:
   \[
   69.65 \times 6 = 417.90
   \]

3. **Escrow pre-collected at closing:**  
   Taxes and insurance for 3 months were already collected at closing. This means an additional:
   \[
   69.65 \times 3 = 208.95
   \]
   was added to the escrow account at the time of closing.

4. **Total in escrow after 6 months:**  
   The total amount in the escrow account after six months is the sum of the pre-collected amount and the six months of contributions:
   \[
   208.95 + 417.90 = 626.85
   \]

### Final Answer:  
After six months of payments, Annie should have **$626.85** in her escrow account.

---

Would you like to explore more details about escrow accounts or any other questions?

Here are 5 related questions:
1. What happens if there's a shortage in the escrow account?
2. How does the lender adjust the escrow payments for future years?
3. Can Annie request a refund if her escrow balance is too high?
4. What is the purpose of collecting taxes and insurance separately from the mortgage payment?
5. How does interest affect the principal and escrow over time?

**Tip:** It's always a good idea to review your escrow account annually to ensure you're not overpaying or underpaying taxes and insurance.

Find out how to calculate the total in Annie's escrow account after six months of mortgage payments. Learn the step-by-step breakdown of how monthly contributions and prepaid amounts contribute to the escrow balance. Suitable for high school students and homeowners.

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