Escrow Account
Also known as Impound Account
An ongoing account your lender uses to collect and pay your property taxes and insurance for you.
In plain English
After closing, many lenders set up an escrow (or impound) account, collecting a portion of your annual property taxes and insurance premiums with each monthly mortgage payment, then paying those bills on your behalf when due.
This is why your monthly payment can change slightly year to year even with a fixed rate — it adjusts based on updated tax and insurance costs.
Where you'll run into it
Guides and tools on TheBuyingPath that cover escrow account in context.
Related terms
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