7
QuizMultiple Choice

Other Costs of Buying a Home

Question 7 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

When buying a home, the lender may hold money in an escrow account to pay _____.

Answer
A
attorney’s fees
B
origination fees
C
property taxes
D
title insurance

Explanation

A lender may collect money in escrow and use it to pay recurring homeownership costs, such as property taxes. Attorney’s fees, origination fees, and title insurance are generally closing costs rather than ongoing escrow payments, so the correct choice is property taxes.

AI-written and checked against the verified answer.

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