Whats an escrow account?
You know how your employer takes out withholding from every check and gives it to the government to make sure that your taxes are covered? An Escrow company “withholds” money every month which is part of your house payment. Your taxes and homeowners insurance are due once a year. Instead of “saving” a couple hundred bucks a month to pay your insurance and taxes, an escrow account is used instead. An escrow account is an approximate prediction of what your taxes and insurance will be, and you may end up owing a few bucks or getting a few bucks back every year in the form of a lower house payment.
