Tools & Resources

Escrow

Your money that is set aside and held in trust by a third party. In a mortgage transaction the funds are commonly used for homeowner's insurance and property tax payments.

Escrow Account

A trust account created by a third party to hold money. In a mortgage transaction, generally these funds are used to pay taxes and insurance bills when they become due. To fund the account, monthly mortgage payments may include 1/12 of annual property taxes and insurance.

Escrow Analysis

Periodic examination of escrow accounts to determine if current monthly deposits are enough to pay taxes, insurance, and other bills when due. Lenders are required to review escrow accounts annually, and to provide you with the analysis.

Escrow Closing

A term used to describe closings in states where Deeds of Trust are used instead of mortgages. Generally, the title company will act as the escrow agent, and supervise the transfer of funds and property.

Escrow Payment

The portion of your monthly mortgage payment held in an escrow account to pay taxes, homeowner's insurance, mortgage insurance, lease payments and other items as they become due. In some states, this is known as impounds, or reserves.