What is an escrow account?

An escrow account is a special account that is paid with your monthly home loan payment that covers the costs of the following:

• Property taxes

• Homeowner's insurance

• Flood insurance, if required

• Mortgage insurance, if required

Typically, an escrow account includes both property taxes and homeowner's insurance, but in some cases, it may include only one or the other.  If you have an escrow account a set portion of your monthly payment is put aside into this account.  As payments for insurance or taxes come due during the year, we take money from the escrow account to pay those bills.  Each year, we review the amount you pay towards your escrow account ("Annual Escrow Analysis") to ensure it covers any increases (or decreases) to your property taxes and/or homeowner's insurance.

For more information on Escrow Accounts please watch this short video.