Mortgage Glossary
Escrow Account
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
An escrow account is an account your loan servicer maintains to collect and pay your property taxes and homeowners insurance.
What Escrow Account means
A slice of each monthly payment goes into the account, and the servicer pays the bills when due. This prevents large lump-sum surprises and protects the lender's collateral.
Florida example
A Florida borrower with $4,800 in annual taxes and $3,600 in insurance pays an extra $700 a month into escrow. When the county tax bill arrives, the servicer pays it directly from the account.
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