Aggregate Adjustment

Business, Legal & Accounting Glossary

Definition: Aggregate Adjustment


Aggregate Adjustment


Full Definition of Aggregate Adjustment


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.


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Definition Sources


Definitions for Aggregate Adjustment are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.