Video transcript: What’s an escrow account?

On screen:

What's an escrow account?

On screen:

Jonathan, Mortgage Banker

Jonathan:

An escrow account is a separate account that the bank sets up to pay your property taxes and your homeowner's insurance.

On screen:

Tina, Mortgage Banker

Tina:

We do collect it on a monthly basis for you for tax and insurance so that when it comes due on an annual basis, we pay for the full amount through your escrow account, so you don't have to worry about saving it on the side.

On screen:

What are the benefits?

On screen:

Tamara, Mortgage Banker

Tamara:

Escrow account for the lender, it's a good thing for the lender because we are able to ensure that your taxes  are being paid in a timely fashion. For the home buyer, you don't need to worry about collecting money and putting it in a separate savings account so that you have to come up with the money at a later time.

On screen:

Escrow account