A: The funds from your escrow account are used to pay property taxes and homeowners insurance. The payment is called an escrow payment, and a mortgage servicing company withdraws the money from the payment you make monthly, places a portion into an escrow account, and subsequently distributes the funds to the city/state/county and homeowners insurance company when the bill is due. This ensures you do not miss payments or become significantly delinquent on either of these bills while you have loan.
posted on January 27, 2019 by
