Escrow
Financial glossary definition
Definition
An account held by a third party (usually your mortgage lender) that collects and pays property taxes and homeowner's insurance on your behalf as part of your monthly mortgage payment.
Try It Yourself
Mortgage Calculator
Estimate monthly payments, total interest, and view your amortization schedule.
Related Terms
Amortization
The process of spreading loan payments over time so that each payment covers both interest and princ…
Down Payment
The upfront cash payment made when purchasing a home, expressed as a percentage of the purchase pric…
Emergency Fund
A savings buffer of 3-6 months of living expenses kept in a liquid, easily accessible account. This …
EMI (Equated Monthly Installment)
A fixed monthly payment made by a borrower to a lender. Each EMI covers both interest and principal …
Equity
The portion of an asset that you truly own — the difference between its market value and any outstan…
Expense Ratio
The annual fee charged by mutual funds and ETFs, expressed as a percentage of assets. A 0.03% expens…