What is escrow on a mortgage?

Escrow is an account the lender maintains to pay property taxes and homeowners insurance when they’re due. The lender estimates the annual amounts and divides by 12, so you pay a portion each month along with principal and interest.

Your total monthly payment often includes principal, interest, and escrow (and mortgage insurance if applicable). Escrow amounts can change when taxes or insurance premiums change.

When comparing quotes, the total monthly payment (including escrow) helps you budget. Lenders may estimate escrow differently, so the total payment can vary slightly. Compare both the principal-and-interest portion and the total payment.

Enter each lender’s quote into a comparison view so you can see the total monthly payment and how it differs across offers.