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An escrow account is established to hold money collected by your lender to pay your hazard insurance and property taxes when they become due. Lenders usually require escrow payments every month to ensure they have enough to pay the insurance and taxes for you. This is a way for lenders to make sure these items are paid annually. You can find out the current taxes from the seller and seek quotes for hazard insurance coverage.

Category: Mortgages
Tag: Escrow