What is Escrow?
Escrow is a financial account set up by the lender to hold funds for property taxes and homeowners insurance. It ensures these costs are paid on time without burdening the borrower with separate due dates.
How Escrow Works
Each month, a portion of the borrower’s mortgage payment goes into the escrow account. The lender then uses the funds to pay taxes and insurance directly when they are due.
Benefits of Escrow
Escrow makes managing homeownership expenses simple and stress-free. It guarantees that property-related bills are covered, protecting both the borrower and lender.
Capstone for Mortgage Education and Mortgage Training Classes
Capstone Institute trains loan officers to explain escrow accounts clearly to clients. Our mortgage education programs prepare professionals to guide borrowers through every step of the process.