mortgage

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Shawn Sethi
Shawn Sethi's picture
mortgage

What is a mortgage escrow?

Jason Pride
Jason Pride's picture

Hi Shawn,

An escrow account is an account in which your money is held for you and controlled by another party. In the case of a mortgage the escrow account is built up slowly with a portion of your monthly payment and used to pay a variety of expenses including insurance, property taxes, HOA fees, and PMI. The exact expenses to be covered vary based on the requirements of the lender.