A borrower's annual property taxes are $3,600 and homeowner's insurance is $1,200. What is the monthly escrow payment for these items?
Correct Answer
B) $400
Monthly escrow payment is calculated by adding annual property taxes ($3,600) and insurance ($1,200) to get $4,800 total, then dividing by 12 months: $4,800 ÷ 12 = $400 per month.
Why This Is the Correct Answer
Monthly escrow payment is calculated by adding annual property taxes ($3,600) and insurance ($1,200) to get $4,800 total, then dividing by 12 months: $4,800 ÷ 12 = $400 per month.
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