What is an escrow account?
A. An escrow account is an account held by Rhode Island Housing into which the homeowner deposits monthly pre-determined payments of real estate tax, insurance and mortgage insurance. Each year in accordance with Federal Law, Rhode Island Housing performs an analysis of your escrow account to determine the amount to be collected for future deposits. If you have any questions regarding escrow requirements, please contact Rhode Island Housing’s Customer Service Department at 800 854-1180 or 401 457-1180 (TTY/Hearing Impaired 401 450-1371) between the hours of 8:30 a.m. and 5:00 p.m. Monday through Friday.
An escrow account is held by the lender for future payment of property taxes and insurance premiums and is typically established at the time you close your loan. Lenders usually require you to pay an initial amount for both taxes and insurance to properly fund the escrow account at the time of closing. Not all loans have escrow accounts established.
