12
QuizMultiple Choice

Other Costs of Buying a Home

Question 12 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Money held by the lender to pay homeowners insurance and property taxes is put in a fund called _____.

Answer
A
closing costs
B
commission
C
escrow
D
origination

Explanation

The lender may collect part of the homeowner’s insurance and property tax payments along with each mortgage payment, then hold that money until those bills are due. This fund is called escrow, so “escrow” is the correct choice.

AI-written and checked against the verified answer.

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