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principal, interest, taxes, and insurance payment

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principal, interest, taxes, and insurance payment

Usually a consumer mortgage loan arrangement that allows the borrower to pay small amounts each month toward anticipated annual expenses for taxes and insurance.The lender keeps the tax and insurance portions of the payment in an escrow account, ready to pay the bills when they come due. If the borrower sells his or her home before the taxes or insurance are due, the borrower may be entitled to a refund of monies in the escrow account.



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