6
QuizMultiple Choice

Home Ownership — Quiz

Question 6 • Financial Algebra/Mathematics

Maximo is considering a mortgage with an escrow account. What does this account typically cover?

Answer
A
property taxes and homeowners insurance
B
monthly entertainment expenses
C
electric and water bills
D
vacation expenses

Explanation

A mortgage escrow account typically collects part of the homeowner’s property taxes and homeowners insurance premium along with each mortgage payment. The lender holds that money and pays those bills when they come due. It usually does not cover utilities, entertainment, or vacation expenses.

AI-written and checked against the verified answer.

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