​Annie's mortgage statement shows a total payment of ​$773.03 with ​$650.19 paid toward principal and interest and ​$122.84 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.

To calculate the amount in Annie's escrow account after six months of payments, let's break down the information step by step:

1. **Monthly Payment Breakdown:**
   - Total payment: $773.03
   - Amount paid toward principal and interest: $650.19
   - Amount paid toward taxes and insurance (escrow payment): $122.84

2. **Escrow Payment:**
   - Each month, $122.84 is allocated to her escrow account to cover future taxes and insurance payments.

3. **Escrow Collected at Closing:**
   - At closing, three months of taxes and insurance were collected, which would be:
     \[
     3 \times 122.84 = 368.52
     \]
     So, $368.52 was initially placed into her escrow account at closing.

4. **Payments Over Six Months:**
   - Over the next six months, she has made six payments of $122.84 into her escrow account:
     \[
     6 \times 122.84 = 737.04
     \]
     This is the total amount she has contributed to her escrow account through her monthly mortgage payments.

5. **Total in Escrow Account After Six Months:**
   - Adding the initial amount from closing and the amount contributed over six months:
     \[
     368.52 + 737.04 = 1105.56
     \]
     Therefore, the total amount in her escrow account after six months is **$1,105.56**.

### Explanation of the Escrow Account:
An escrow account is used by the mortgage lender to hold funds for property-related expenses like taxes and insurance. The lender collects a portion of these costs each month (in Annie’s case, $122.84) and places it in the escrow account. When taxes or insurance payments are due, the lender uses the funds from this account to make the payments on behalf of the homeowner.

Would you like more details on how escrow accounts work, or any other clarifications?

### 5 Related Questions:
1. How does an escrow shortage or surplus affect future payments?
2. Can the escrow account balance fluctuate during the year?
3. What happens if the taxes or insurance amounts increase?
4. Is it possible for Annie to make additional payments into her escrow account?
5. How are taxes and insurance amounts estimated when setting up an escrow account?

### Tip:
Always review your escrow statement annually to ensure that the amount being collected for taxes and insurance matches any changes in your actual costs.

Annie's mortgage statement shows a total payment of ​$773.03 with ​$650.19 paid toward principal and interest and ​$122.84 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.

Calculate the total in Annie's escrow account after six months of payments. This financial calculation problem involves basic arithmetic and mortgage payment breakdowns, including principal, interest, taxes, and insurance. Step-by-step solution provided for better understanding.

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