aggregate adjustment

Definition

A formula used by lenders to ensure that the proper amount of money is collected in a borrower's escrow account at closing to cover upcoming costs for taxes and insurance. State law governs the maximum amount that may be retained in escrow (typically 2 prorated months of property taxes and insurance premiums based on a 12 month calculation period). The aggregate adjustment may result in a credit to the borrower so that funds in excess of the allowable amount aren't tied up in escrow.

Use this term in a sentence

You should try to make an aggregate adjustment if you think that it will be able to help your company out.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

There was an aggregate adjustment made and it made us all quite happy and it also made everyone wonder what would happen.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

After finalizing the figures for the aggregate adjustment, we had a deal that all parties could agree on, which was the highlight of our day.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

Show more usage examples...

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
aggregate aggregate annual deductible