annie's mortgage statement shows a total payment of $583.96 with $476.03 paid toward principal and interest and $107.93 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

Annie's mortgage statement shows that $107.93 is paid each month toward taxes and insurance. Since taxes and insurance for three months were collected at closing, those payments have already been made and accounted for separately. Now, after six months of regular payments, she wants to know how much is in her escrow account.

Let's break this down:

1. **Monthly payment for taxes and insurance**: $107.93.
2. **Number of months Annie has been making payments**: 6 months.
3. **Total payments made toward escrow (taxes and insurance)**:
   \[
   107.93 \times 6 = 647.58
   \]

Since three months of taxes and insurance were collected at closing, those were prepaid. Therefore, the escrow balance reflects the taxes and insurance payments for the three months of payments that followed.

Thus, after six months, the total amount in Annie's escrow account for taxes and insurance is **$647.58**.

### Explanation of Escrow Account:
- An escrow account is used by mortgage lenders to collect and hold funds from the borrower for future payments of property-related expenses such as property taxes and homeowner's insurance.
- The lender collects monthly payments (in Annie's case, $107.93) as part of her mortgage payment to fund this account. The lender then uses the escrow funds to pay the tax and insurance bills when they come due.

Would you like more details or have any questions?

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Here are 5 related questions to expand your understanding:
1. How is the monthly escrow payment amount typically determined?
2. How do mortgage payments split between principal, interest, taxes, and insurance?
3. What happens if there is a shortfall in the escrow account?
4. How can you estimate annual property tax increases and how they affect escrow?
5. Can a borrower request changes to their escrow payments?

**Tip**: Regularly reviewing your mortgage statement ensures you're aware of any changes in your escrow balance, which can fluctuate based on changes in taxes or insurance.

Annie's mortgage statement shows a total payment of $583.96 with $476.03 paid toward principal and interest and $107.93 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.

Learn how to calculate the total amount in Annie's escrow account after six months of mortgage payments. This problem involves basic arithmetic and understanding mortgage statements, including the calculation of taxes and insurance escrow. Suitable for high school students (Grades 9-12).

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