Taxes and Insurance

Funds collected as part of the borrower’s monthly payment and held in escrowAn item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon... for the payment of the borrower’s or funds paid by the borrower for, state and local property taxes and insurance premiums.