What Is an Escrow Account? And What Does It Pay For?
An escrow account is integral to your mortgage agreement that withholds funds for property taxes and insurance.
These costs are typically paid annually or bi-annually, and your mortgage servicer may collect them in monthly installments and hold them in a separate account.
This ensures that these expenses are covered on time and prevents homeowners from experiencing any lapses in coverage.
However, maintaining an escrow account can be confusing and stressful for homeowners who are uncertain about how these funds are used.
It is important to communicate with your mortgage servicer and understand the details of your escrow account to ensure that you are prepared for all expenses associated with owning a home.
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