Escrow Account

An escrow account is an account where the lender keeps the escrow funds paid by the borrower. This account is governed and managed by the lender to pay property taxes and insurance premiums on behalf of the borrower. The lender ensures that the escrow account is funded with the accurate amount that is needed for the taxes and premiums and, therefore, conducts annual escrow analysis to make the right escrow projections for the upcoming year.