Question

Tanesha has a monthly mortgage payment of $650. Her annual property taxes are $1200, her PMI is $66/month, and her homeowners insurance is $840 per year. How much is deposited into Pam's escrow account each month?

Answer 1

The correct answer is:

$236

Explanation:

Her annual property taxes are $1200.  This means her escrow each month needs to have 1/12 of that amount; 1200/12 = $100 needs to be in the account each month.

Her mortgage insurance is $66 per month; this means a total of $100+66 = $166 needs to be in escrow every month.

Her homeowner's insurance is $840 per year; this means 1/12 of that needs to be in her escrow account each month:

840/12= 70

This gives us a total of $166+$70 = $236

Answer 2

Answer: 236

Step-by-step explanation: