What Is An Escrow Account?

January 14, 2022

An Escrow account is a service to help home owners manage taxes and insurance cost. Instead of waiting until tax season and discovering a surprise bill that could total thousands of dollars you deposit a small amount of your monthly payment into an Escrow account that pays for your taxes and home owners insurance. Whether or not you're required to open an Escrow account can depend on the type of loan and provider. However, it's never a bad idea to consider opening an Escrow account even if you're not required to.