Which of the following is NOT a benefit of an impound account to the lender?

The correct answer is based on the understanding of how impound accounts function in real estate financing. An impound account, also known as an escrow account, is typically used by lenders to collect and hold funds from borrowers for specific expenses such as property taxes and insurance premiums. This arrangement provides benefits to the lender, ensuring that these important expenses are paid on time, thus reducing the risk of tax liens or lapses in insurance coverage.

While the first two options directly relate to the core purpose of an impound account—ensuring timely payment of property taxes and covering insurance premiums—an impound account does not affect the overall loan interest rate. The lender's rate is determined based on various factors, including the borrower's creditworthiness, market conditions, and the loan type, but not by whether an impound account is used.

Additionally, impound accounts do not provide funding for repairs. Home maintenance and repairs are typically the responsibility of the homeowner, not something that would be funded through an impound account. Therefore, the benefit of reducing the overall loan interest rate is not applicable in this context.