GENERAL KNOWLEDGE

Detailed explanation-1: -An escrow account, sometimes called an impound account depending on where you live, is set up by your mortgage lender to pay certain property-related expenses. The money that goes into the account comes from a portion of your monthly mortgage payment.

Detailed explanation-2: -Escrow is an easy way to manage property taxes and insurance premiums for your home because you don’t have to save for them separately. You’re setting aside money for them every month, which is often easier than trying to find the money for lump-sum payments throughout the year.

Detailed explanation-3: -Escrow is a legal concept describing a financial agreement whereby an asset or money is held by a third party on behalf of two other parties that are in the process of completing a transaction. Escrow accounts are managed by the escrow agent.

Detailed explanation-4: -Definition: An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties.