What is an Impound Schedule?

An impound (or escrow) schedule determines how many months of property taxes and insurance premiums your lender will collect at closing. These reserves ensure your escrow account has enough funds to pay property taxes (due twice a year in Washington: April 30 and October 31) and annual homeowner’s insurance when they come due.

📊 Washington State Standard Impound Schedule

Reserves Collected at Closing

Closing Month 1st Payment Tax Reserves Collected Escrow Instructions
January March 1st 6 months Previous year paid-in-full
February April 1st 7 months Previous year paid-in-full
March May 1st 2 months Pay first half year’s taxes
April June 1st 3 months Pay first half year’s taxes
May July 1st 4 months Pay first half year’s taxes
June August 1st 5 months First half year’s taxes should be paid
July September 1st 6 months First half year’s taxes should be paid
August October 1st 1 month Pay second half year’s taxes
September November 1st 2 months Pay second half year’s taxes
October December 1st 3 months Pay second half year’s taxes
November January 1st 4 months Full year taxes should be paid
December February 1st 5 months Full year taxes should be paid

(This is based on the standard WA impound cycle — some lenders may adjust slightly depending on due dates or when your insurance renews.)

Why the numbers might vary slightly

While this schedule covers the standard tax cycle, most lenders also require a two-month cushion to stay in your account at all times. This acts as a safety net in case property taxes increase or your insurance premium goes up, ensuring your monthly payment stays as stable as possible throughout the life of your loan.


💡 Kevin’s Pro Tip

If you’re closing near a tax deadline (like April or October), double-check your settlement statement to see if the seller is crediting you for their portion of the year’s taxes. It’s a small detail that can make a big difference in your final cash-to-close!

Ready to start your Northwest homebuying journey?

Closing costs shouldn’t be a guessing game. The mortgage market moves fast, and having a clear Custom Loan Blueprint is the best way to ensure your budget is ready for the Northwest market.

📝Fill out the form to the right (or below on mobile), and I’ll personally reach out to provide a detailed breakdown of your estimated impounds tailored specifically to your target home.

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Escrow Readiness Checklist

Make sure you have your Homeowner’s Insurance quote ready at least 14 days before closing. This allows us to lock in your exact impound requirements and avoid last-minute "sticker shock" on your final disclosure.

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NMLS 1534892 | Pennington Lending Services Inc.

Impound & Escrow FAQ’s

What is the difference between an impound account and an escrow account?

In the mortgage world, these terms are used interchangeably. Both refer to a neutral account where your lender holds a portion of your monthly payment to pay for your property taxes and homeowner’s insurance premiums on your behalf when they come due.

Is an impound account required for my loan?

For most government-backed loans like FHA and VA, an impound account is required. For Conventional loans, it is generally optional if you have a down payment of 20% or more, though many Northwest buyers still choose to have one to simplify their monthly budgeting.

Why is the "cushion" required in my account?

Federal law allows lenders to maintain a “cushion” (usually two months of payments) to protect against tax or insurance increases. This safety net ensures that if your tax bill goes up next April, your account won’t fall into a negative balance, which helps keep your monthly mortgage payment more stable.

Can I ever cancel my impound account later?

Yes, on many Conventional loans, you can request to waive your impounds. At that point, you would become responsible for paying your own tax and insurance bills directly as they come due.