Pam has monthly mortgage payment of $750. Her annual property taxes are $1200,her PMI is $55/month, and her homeowners insurance is $800 per year. How much is deposited into Pam’s escrow account each month?
Accepted Solution
A:
Answer:$100 + $66.67 + $55 = $221.67/month, which is the amount that must be deposited into Pam's escrow account each month....Step-by-step explanation:Pam's annual taxes are $1200 per year. It means her escrow each month needs to have 1/12 of that amount. 1200/12 = $100 per monthHer homeowner's insurance is $800 per year, that's 1/12 of that needs to be in her escrow account each month: $800 / 12, or $66.67/month.And PMI is $55/monthAdd these three together: $100 + $66.67 + $55 = $221.67/month, which is the amount that must be deposited into Pam's escrow account each month....