Rates & Loans

Escrow

An account your lender uses to collect and pay your property taxes and homeowners insurance on your behalf.

What does escrow mean?

With an escrow account, a portion of each mortgage payment is set aside to cover property taxes and insurance when they come due. It spreads these large bills across the year and ensures they’re paid on time. "Escrow" also refers to the neutral holding of funds during a home purchase.

Put it to use

Mortgage Calculator with Taxes and Insurance Use this calculator to determine your monthly mortgage principal, interest, taxes and insurance payment (PITI) and amortization schedule. Home closing cost calculator Use this calculator to help estimate the total cost to purchase a home.

All glossary terms