Insurance Term of the Day: Escrow

Buying a home is a big deal. The value of a home is likely the most expensive thing you will buy–worth hundreds of thousands of dollars. It would be nice if we could pay the cost of the home outright, but since this is impossible for most of us, we must have a few different means of financial help.            You will need a mortgage lender, and you will also need what’s called an escrow agent to mediate the money involved in the purchase.

Escrow refers to a neutral third party which ensures a safer transaction by holding onto and managing the money. This guarantees the correct usage of the money by both the buyer and the seller. An escrow account is part of the buying process of a home to ensure the integrity of both parties of the transaction. The purpose of an escrow account holder can be compared to the job of a referee: making sure both parties meet the agreements they made.

The escrow account holder collects the deposit money. Typically, the deposit is a small percentage of the full value of the home. Once the deposit has been made, the seller takes the property off the market in exchange. Until the very last payment has been made, the deposit and the property are “in escrow”.

It is the responsibility of an escrow account holder to accurately process transactions by request the of both parties at the right time. They handle the funds, or pay the authorized bills, following the instructions of the buyer/seller. At the finalization of the last transaction, it will be the escrow agent’s job to close the account as well.

By: KayLynn P.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Search All Blogs

Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Your Life Insurance Policy: A Secret Savings Account?

Don’t Cash Out! Unlock the Hidden Benefits of Your Life Insurance Policy (Free Quote Included!)

Taming the Paper Tiger: How to Keep Important Documents Safe

Don’t Let Your Important Documents Become Disaster Snacks! Safe Storage Tips Inside

Fort Knox for Your Family: Why Life Insurance is Your Secret Weapon

Life Insurance: The Unsung Hero of Family Protection (Free Quote!)

Decoding the Grocery Aisle: Your Guide to Nutrition Labels

Mystery Solved! Unveiling the Secrets of Nutrition Labels for Smarter Grocery Shopping

Kick the Bucket List, Not the Bucket: Unleashing Your Inner Adventurer

Bucket List Blues? Unleash Your Inner Adventurer with This Fun and Feasible Guide

Life Insurance: Unraveling the Mystery (No Shady Business Here)!

Life Insurance FAQs: Unveiling the Mysteries and Myths (Without the Gimmicks!)

Life Insurance Claims: Demystifying the Process (So You Can Get What You’re Owed)

Life Insurance Claims: A Simple Guide to Getting What You Deserve

Life Changes? Don’t Forget Your Life Insurance! A Guide to Keeping Your Beneficiaries Up-to-Date

Life’s Milestones and Your Life Insurance Beneficiary: Why Regular Reviews Are Crucial

Million Dollar Dreams, Affordable Reality: Is a Big Life Insurance Policy Right for You?

Million Dollar Life Insurance: Myth or Must-Have? Exploring Your Options

No Needles, No Problem: Unveiling the Secrets of Life Insurance Without a Physical Exam

Life Insurance Made Easy: Skip the Physical, Get Covered Today!