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As a potential buyer, seller, or investor if you are trying to know about the escrow account the other most common time an escrow account is used is when you pay more than your principal and interest on your mortgage payment.\u00a0<\/p>
This is very different from the buy or sale process.\u00a0<\/p>
This is for the buyers who have already purchased a home and have started making payments for a mortgage.\u00a0<\/p>
Most mortgage payments include principal and interest which is the amount that you owe on the loan and the interest you are paying on the loan.\u00a0<\/p>
And it is entirely common that you would also pay property taxes and\/or homeowners insurance every month in your payment.\u00a0<\/p>
In this, the taxes and insurance piece of your monthly payment are only paid once per year when they are due but you pay them every month and they build up in an account called an escrow account.\u00a0<\/p>
This escrow account is managed by the lender or bank that is servicing your mortgage. You pay principal and interest every month that goes towards your loan.\u00a0<\/p>
You pay taxes and insurance that is accumulated in an escrow account for up to 12 months and your lender or bank will pay the full insurance and property taxes for the year.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t