The word has two uses. During a purchase, an escrow or title company holds deposits and documents until everything is signed. After closing, many loans include an escrow account: part of each monthly payment is set aside, and the servicer pays your property taxes and homeowners insurance when they come due.
Why it matters
An escrow account turns large yearly bills into steady monthly amounts. If taxes or insurance go up, the monthly payment changes too.
Where you meet it
On your Loan Estimate, your Closing Disclosure and every mortgage statement.
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