What is Escrow?
It’s an easy way to manage the payment of your property taxes and insurance premiums for your home. You don’t have to save for them separately because your property taxes and insurance premiums are included in your monthly payment.
- Part of your monthly payment goes toward your mortgage to pay your principal and interest.
- The other part goes into your escrow account for property taxes and insurance premiums (like homeowners insurance, mortgage insurance, or flood insurance).
When these bills are due, we use the funds in your escrow account to pay them.
Don’t worry about sending us your tax or insurance bills – we usually get a copy from your local property tax office and insurance company. If we need a copy, we’ll let you know.