Impound Account
Direct definition
Another name for an escrow account, used mostly on the West Coast.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
An impound account collects taxes and insurance monthly and pays those bills when due, just like an escrow account.
Why it matters
It's the same concept; only the terminology varies by region.
Where you may see it
- Mortgage statement
- Escrow analysis statement
A real-world example
In California, your servicer refers to your escrow as an impound account.
Educational and illustrative only
A common misunderstanding
An impound account is not a different type of account from escrow — it's the same concept, just a regional term.
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This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026