Escrow Account
Disclaimer: This website provides general mortgage and financial information for educational purposes only. It does not constitute financial, legal, or mortgage advice. Housentia is not a licensed mortgage broker, lender, or loan originator.
This content is provided for general educational purposes only and does not constitute financial or mortgage advice.
Definition
An account held by the lender into which you pay property taxes and insurance; the lender pays these on your behalf.
Explanation
Escrow spreads tax and insurance costs over 12 months. Lenders may require it when LTV is high or by law in some states.