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An initial escrow deposit is the amount that you will pay at closing to start your escrow account, if required by your lender. This initial amount may be different from what you pay monthly to maintain the escrow account.
The mortgage aggregate adjustment determines the initial deposit that must be placed in the escrow account at closing. The formula is used to calculate the amount that allows a two-month cushion, which is a maximum sum of money in addition to the amount needed to cover escrow items in the borrowerâs account at all times.