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What is a Mortgage Escrow Account?

Mortgage Escrow Account

A Mortgage Escrow Account is established to pay on-going expenses while there is a loan on the house. These expenses include property taxes, home insurance, and mortgage insurance. Generally, the Escrow Account is partially funded at closing (Labeled “Pre-Paid Items”) and the home buyer makes on-going contributions with their monthly mortgage payment.

Very different from “Escrow” this is an account maintained by the lender and funded by you to pay on-going expenses, such as property taxes and home owner’s insurance.  See the Real Estate Definition below.