What is an Escrow Account? A Financial Primer

What is an Escrow Account? A Financial Primer

You'll hear the word 'Escrow' a dozen times during your home purchase in Brookline. But what does it actually mean for your wallet?

Two Types of Escrow

1. The Deposit: This is the 'Earnest Money' held by an attorney or brokerage to show you're serious. It's applied to your down payment at closing.
2. The Mortgage Escrow: This is an account your lender manages to pay your property taxes and insurance. You pay a little into it every month as part of your PITI.

Why It's Good

It ensures you aren't hit with a giant $5,000 tax bill all at once. It makes homeownership predictable and automated.

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