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.

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

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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.

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