Glossary of Mortgage Terms

Escrow fees are charges paid at closing to a neutral third party, such as an escrow company, title company, or real estate attorney, for managing the transfer of funds and documents between buyer, seller, and lender during a real estate transaction.

An escrow holdback is an agreement to set aside money in a third-party account at closing to pay for necessary repairs to the property that can't be done before the sale is final.

An escrow shortage happens when your escrow account doesn't have enough money to cover upcoming property tax and insurance payments, which usually leads to a higher monthly mortgage bill.

If you get an escrow waiver, you don't have to use an escrow account to pay your property taxes and homeowners insurance. Instead, you can pay them directly.