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# How does each option in Escrow Account Type impact my transaction?

- Escrow account established and required: An escrow (impound) account is required in connection with the transaction. Property costs can be entered as Escrowed, Non-Escrowed, or Waived in the Property Costs table. When selected, the options in the Mortgage Insurance section directly above the Property Costs section are available because the inclusion of mortgage insurance requires an escrow account.
- Consumer waived the optional escrow account: An escrow (impound) account is not required in connection with the transaction. The borrower will manage the payment of taxes and insurance outside of an escrow (impound) account. Choosing this option will select ‘you declined it’ in the Escrow Account section on page 4 of the Closing Disclosure describing why an escrow account was not established. Property costs can be entered only as Waived in the Property Costs table. When selected, the options in the Mortgage Insurance section directly above the Property Costs section will be disabled since the inclusion of mortgage insurance requires an escrow account. If you have selected Existing Escrow Account Transferred- No New Escrow or Combined Existing and New Escrow this option will not be available for selection.
- Escrow account established and optional: An escrow (impound) account is not required in connection with the transaction and an escrow (impound) account will be established for the payment of such items as taxes and insurance. Property costs can be entered as Escrowed, Non-Escrowed, or Waived in the Property Costs table. When selected, the options in the Mortgage Insurance section directly above the Property Costs section will be disabled because the inclusion of mortgage insurance requires an escrow account.
- Escrow not applicable: An escrow (impound) account is not applicable for the transaction. Choosing this option will select ‘your lender does not require of offer one’ in the Escrow Account section on page 4 of the Closing Disclosure describing why an escrow account was not established. Property costs can be entered only as Non-Escrowed in the Property Costs table. When selected, the Mortgage Insurance section directly above the Property Costs section is not available since the inclusion of mortgage insurance requires an escrow account. If you have selected Existing Escrow Account Transferred- No New Escrow or Combined Existing and New Escrow this option will not be available for selection.