--- title: Mortgage Escrow Explained description: Even if you have a fixed interest rate, it is entirely possible that your mortgage payment will adjust due to the mortgage escrow. image: https://blog.homesandland.com/hubfs/Imported_Blog_Media/ArticleThumb_escrow.jpg --- [![Homes & Land](https://blog.homesandland.com/hubfs/Images/hnl-logo.svg)](https://www.homesandland.com/) - [Homes](https://www.homesandland.com/homes) - [Rentals](https://www.homesandland.com/rentals) - [Agents](https://www.homesandland.com/agents) - [Commercial](https://www.homesandland.com/commercial) - [Open houses](https://www.homesandland.com/open-houses) - [Land](https://www.homesandland.com/land) - [Mortage](https://www.homesandland.com/mortgage) - More [Rentals](https://www.homesandland.com/rentals) [Agents](https://www.homesandland.com/agents) [Commercial](https://www.homesandland.com/commercial) [Open houses](https://www.homesandland.com/open-houses) [Land](https://www.homesandland.com/land) [Mortage](https://www.homesandland.com/mortgage) - [Log in](https://www.homesandland.com/account) - [Blog](https://blog.homesandland.com) - [Advertisers](https://advertise.homesandland.com/advertise) [How a Realtor Makes Home Buying Easier](https://blog.homesandland.com/how-a-realtor-makes-home-buying-easier) Buying a home is one of the most significant financial decisions you’ll ever make, but the process... [Read More](https://blog.homesandland.com/how-a-realtor-makes-home-buying-easier) [13 Cities That Will Pay You To Move There](https://blog.homesandland.com/13-cities-that-will-pay-you-to-move-there) The physical act of moving is often a hassle. But starting over somewhere fresh and new can be... [Read More](https://blog.homesandland.com/13-cities-that-will-pay-you-to-move-there) [5 Benefits Of Living In The Countryside](https://blog.homesandland.com/5-benefits-of-living-in-the-countryside) Are you over the hustle, bustle, and cost of city living? What draws us somewhere at one point in... [Read More](https://blog.homesandland.com/5-benefits-of-living-in-the-countryside) [5 Questions to Ask Your Realtor When Selling Your Home](https://blog.homesandland.com/5-questions-ask-realtor-when-selling-home) If you’re like most home sellers, you probably already know that [working with a realtor](https://blog.homesandland.com/need-realtor-help-sell-home-top-dollar) can mean so... [Read More](https://blog.homesandland.com/5-questions-ask-realtor-when-selling-home) [10 Step Guide to Selling Your Home](https://blog.homesandland.com/10-step-guide-selling-your-home) Ready to put your home on the market? Many people hope for a stress-free sales process, but the... [Read More](https://blog.homesandland.com/10-step-guide-selling-your-home) [Home](https://www.homesandland.com/) [Homes & Land Blog](https://blog.homesandland.com) > Mortgage Escrow Explained --- # Mortgage Escrow Explained ![ArticleThumb_escrow](https://blog.homesandland.com/hubfs/Imported_Blog_Media/ArticleThumb_escrow.jpg) ## How does mortgage escrow work? A typical monthly mortgage is comprised of PITI — principal, interest, taxes and insurance. Even if you have a fixed interest rate, it is entirely possible that your monthly mortgage payment will adjust at least once per year due to the mortgage escrow. A mortgage escrow is the monthly amount that you pay toward the mortgage taxes and mortgage insurance. It is set aside in a special fund until the property taxes and homeowners insurance bills are sent. At that time, the insurance or taxes are paid from the funds that have accumulated in the escrow account. However, each year the insurance or property taxes can increase, so the monthly escrow amount is only an estimate that will be recalculated based upon the anticipated fees required for the following year. An escrow account is a convenient way to assure the funds are there when you need them, but some people prefer to handle the payment of homeowners insurance or property taxes personally. It is possible to eliminate the escrow amount but it depends upon the mortgage company. In some cases, you may be required to pay a small fee to eliminate escrow. Whether you have property taxes and homeowners insurance escrowed or pay it yourself, be sure to verify the bills are paid on time each and every year. Even if the funds are escrowed, it is still your responsibility as the homeowner to make sure the payments are sent and credited on time. If your mortgage has been transferred or you change insurance providers, it is imperative that you send written documentation of changes to ensure proper notification and payment. Looking to buy or sell? Find a [local Realty Expert ](https://www.homesandland.com/sitemap/agents)who can help or search our [real estate listings](https://www.homesandland.com/).   Learn something new? Want to pass an idea to a friend? Share the knowledge with your network! ![Share to your network!](https://blog.homesandland.com/hubfs/Homes_And_Land_October2018%20Theme/Images/share-arrow.png) [Buying a Home](https://blog.homesandland.com/tag/buying-a-home) ### Select a Category - [Buying a Home (83)](https://blog.homesandland.com/tag/buying-a-home) - [Real Estate Marketing (49)](https://blog.homesandland.com/tag/real-estate-marketing) - [Selling a Home (38)](https://blog.homesandland.com/tag/selling-a-home) - [Home Ownership (30)](https://blog.homesandland.com/tag/home-ownership) - [Articles (21)](https://blog.homesandland.com/tag/articles) - [Featured (20)](https://blog.homesandland.com/tag/featured) - [Renting a Home (12)](https://blog.homesandland.com/tag/renting-a-home) - [The buying journey (11)](https://blog.homesandland.com/tag/buying-journey) - [Building a home (10)](https://blog.homesandland.com/tag/building-a-home) - [For Agents (10)](https://blog.homesandland.com/tag/for-agents) - [Home Improvement (8)](https://blog.homesandland.com/tag/home-improvement) - [Home Values, Credit & Mortgage (8)](https://blog.homesandland.com/tag/credit-and-mortgage) - [Interior Design (8)](https://blog.homesandland.com/tag/interior-design) - [Landscaping and Gardening (5)](https://blog.homesandland.com/tag/landscaping-and-gardening) - [The selling journey (5)](https://blog.homesandland.com/tag/the-selling-journey) - [real estate agent (5)](https://blog.homesandland.com/tag/real-estate-agent) - [Loans (4)](https://blog.homesandland.com/tag/loans) - [real estate (4)](https://blog.homesandland.com/tag/real-estate) - [Blog Posts (3)](https://blog.homesandland.com/tag/blog-posts) - [Credit (3)](https://blog.homesandland.com/tag/credit) - [Financing (3)](https://blog.homesandland.com/tag/financing) - [Mortgages (3)](https://blog.homesandland.com/tag/mortgages) - [architecture (3)](https://blog.homesandland.com/tag/architecture) - [Housing Market (2)](https://blog.homesandland.com/tag/housing-market) - [Taxes (2)](https://blog.homesandland.com/tag/taxes) - [home buying journey (2)](https://blog.homesandland.com/tag/home-buying-journey) - [Company News (1)](https://blog.homesandland.com/tag/company-news) - [Foreclosures (1)](https://blog.homesandland.com/tag/foreclosures) - [Infographics (1)](https://blog.homesandland.com/tag/infographics) - [Negotiations (1)](https://blog.homesandland.com/tag/negotiations) - [Videos (1)](https://blog.homesandland.com/tag/videos) See all - Helpful Links and Resources: - [GET HELP From a real estate professional](https://www.homesandland.com/agents) - [VIEW Digital Magazines](https://www.homesandland.com/magazine) - [ORDER Homes & Land](https://www.homesandland.com/magazine) - [RESEARCH Local Mortgage Rates](https://www.homesandland.com/mortgage) - [ADVERTISE In Homes & Land](https://advertise.homesandland.com/advertise) #### [![real estate infographics](https://blog.homesandland.com/hubfs/Homes_And_Land_October2018%20Theme/Images/finger.png) Interactive Infographics - Home Improvement - Real Estate](https://blog.homesandland.com/tag/infographics) ## SIGN UP FOR EMAIL UPDATES ## Recently Added ## [How a Realtor Makes Home Buying Easier](https://blog.homesandland.com/how-a-realtor-makes-home-buying-easier) Buying a home is one of the most significant financial decisions you’ll ever make, but the process can be overwhelming. From finding the right property to… [Read More »](https://blog.homesandland.com/how-a-realtor-makes-home-buying-easier) ## [13 Cities That Will Pay You To Move There](https://blog.homesandland.com/13-cities-that-will-pay-you-to-move-there) The physical act of moving is often a hassle. But starting over somewhere fresh and new can be super exciting. The downside? The cost. Unless you have an… [Read More »](https://blog.homesandland.com/13-cities-that-will-pay-you-to-move-there) ## [5 Benefits Of Living In The Countryside](https://blog.homesandland.com/5-benefits-of-living-in-the-countryside) Are you over the hustle, bustle, and cost of city living? What draws us somewhere at one point in our lives can easily change over time. As many people… [Read More »](https://blog.homesandland.com/5-benefits-of-living-in-the-countryside) - [Sitemap](https://www.homesandland.com/sitemap) - [Terms of Use](https://www.homesandland.com/terms-of-use) - [Privacy Policy](https://www.homesandland.com/privacy-policy) - [About Us](https://www.homesandland.com/about-us) - [Contact Us](https://www.homesandland.com/contact-us) - [Partners](https://www.homesandland.com/partners) © 2026 NewPoint Media Group, LLC. All Rights Reserved. Fair Housing and Equal Opportunity