Real Estate Escrow Payment
Escrow Payment is the common term that refers to the portion of the mortgage payment that is designed to pay property taxes and insurance, also referred to as T & I. It is the amount that is over and above the payment for principal and interes, which are referred to as P & I. These payments combined are usually called PITI: Principal, Interest, Taxes and Insurance. Some mortgage companies require that you maintain a minimum balance in your escrow account to pay the property taxes when due and the hazard insurance premium when due.
Check with your lender to find out about their policy for an escrow account balance.