Mortgage Definition
Escrow
An account held by your lender to pay property taxes and insurance on your behalf. Part of your monthly payment goes into escrow, and the lender makes payments when due.
Why it matters
This term directly affects your cash-to-close plan. Buyers often focus on rate first, but upfront funds and reserve cushions usually determine whether a purchase is actually feasible.
Related terms
Related tools
- Mortgage Calculator
Estimate principal, interest, taxes, insurance, and PMI in one payment view.
- Affordability Calculator
Validate your target budget and debt-to-income range before making offers.
- Closing Costs Calculator
Estimate cash-to-close so you can compare monthly and upfront costs together.
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