Escrow
What it means
An escrow account is a special account created by your mortgage lender. It holds money from your monthly payments. This money is used to pay for property taxes and homeowner's insurance.
Why it matters
An escrow account helps make sure that important bills for your property are paid on time. This can stop problems like tax liens or gaps in insurance coverage.
Official sources
CFPB
Updated 08-20-2026
Escrow
An escrow account is set up by your mortgage lender to pay certain property-related expenses, like property taxes and homeowner’s insurance. A portion of your monthly payment goes into
CFPB Mortgage Terms
CFPB · pp. 6–10
How it shows up
When you see it
You might encounter the term 'escrow' when discussing your mortgage, reviewing your monthly payment statements, or when buying a home.
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Short definitions for orientation—not statutes or legal advice. Back to glossary