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Buyer's Guidechevron_rightGlossary

Escrow

In plain English

Money or documents held by a neutral party until a deal's conditions are met, like your earnest money before closing. After closing, escrow also means the account your lender uses to pay your property tax and insurance from your monthly payment.

By David Knorr · Last reviewed October 28, 2026

Why it matters to you

Your monthly mortgage payment usually includes an escrow amount. When taxes or insurance go up, your payment goes up with them, even on a fixed-rate loan.

Earnest moneyProperty taxHomeowners insurance

infoGeneral information based on the standard Georgia REALTORS® purchase contract and public guidance. Your own contract decides: read it, and ask your agent or closing attorney about anything that matters. Not legal or financial advice.