# Escrow

> 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, founder of BuyWise Home. Last reviewed October 28, 2026. Web page: https://www.buywisehome.com/guide/glossary/escrow

## 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.

## Related

- [Earnest money](https://www.buywisehome.com/guide/glossary/earnest-money): A good-faith deposit held in escrow and credited to you at closing.
- [Property tax](https://www.buywisehome.com/guide/glossary/property-tax): A yearly tax on the home's value, usually paid monthly through your mortgage.
- [Homeowners insurance](https://www.buywisehome.com/guide/glossary/homeowners-insurance): Pays to repair your home after damage like fire or storms. Your lender requires it.

_General 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._