[{"data":1,"prerenderedAt":261},["ShallowReactive",2],{"site-navigation":3,"jd-power-global":82,"U3155RynEB":92,"e39XklTYXt":108,"disclosure-default":131,"spanish-language-disclosure":138,"J1MihCHS9H":145,"SEeE09FmpH":161,"tag-escrow":189,"tag-articles-escrow":192},{"_path":4,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"bottomSiteNavigationLinks":8,"mainSiteNavigationLinks":28,"footerSiteNavigationLinks":34,"socialLinks":53,"headerNavigation":64,"_id":77,"_type":78,"title":79,"_source":80,"_file":81,"_extension":78},"/settings/site-navigation","settings",false,"",[9,12,15,18,21,24],{"text":10,"to":11},"Calculators","/calculators",{"text":13,"to":14},"Rates","/rates",{"text":16,"to":17},"Buy","/home-buying",{"text":19,"to":20},"Refinance","/refinancing",{"hideFromSiteMap":6,"text":22,"to":23},"Equity","/equity",{"text":25,"to":26,"hideFromSiteMap":27},"Education & Tools","/education-and-tools",true,[29,30,31,32,33],{"text":10,"to":11},{"text":13,"to":14},{"text":16,"to":17},{"text":19,"to":20},{"text":22,"to":23},[35,38,41,44,47,50],{"text":36,"to":37},"Citi.com","https://www.citi.com",{"text":39,"to":40},"Sitemap","/sitemap",{"text":42,"to":43},"Accessibility","https://online.citi.com/US/JRS/portal/template.do?ID=Accessibility",{"text":45,"to":46},"Privacy Policy","https://online.citi.com/US/JRS/portal/template.do?ID=Privacy",{"text":48,"to":49},"Terms & Conditions","https://online.citi.com/US/nga/termsdisclaimer/termsdisclaimerhome",{"text":51,"to":52},"Do Not Sell or Share My Personal Information","https://online.citi.com/US/ag/dataprivacyhub/cpra/home",[54,57,61],{"to":55,"text":56,"icon":56},"https://www.facebook.com/citibank","Facebook",{"to":58,"text":59,"icon":60},"https://x.com/Citibank","X, formally known as Twitter","X",{"to":62,"text":63,"icon":63},"https://www.youtube.com/citi","YouTube",{"utilityNavigation":65},[66,72],{"link":67,"variant":70,"icon":71},{"text":68,"to":69},"Apply now","#dragonflyapp","primary",null,{"link":73,"variant":76},{"text":74,"to":75},"{{tracking_code}}","tel:{{tracking_code}}","primary-outline","content:settings:site-navigation.json","json","Site Navigation","content","settings/site-navigation.json",{"title":83,"subtext":7,"portraitImage":84,"imageAlt":85,"imageWidth":86,"background":87,"borderRadius":88,"maxWidth":89,"paddingTopBottom":90,"paddingLeftRight":90,"gap":90,"variant":91},"Citi is #1 in Customer Satisfaction with Mortgage Origination - ***[J.D. Power 2025 Award](https://www.jdpower.com/business/awards)***","/media/jdpower-trophy.png","J.D. Power 2025 Trophy",48,"var(--brand-default)",0,650,16,"default",{"data":93,"body":95,"toc":105},{"title":7,"description":94},"Citi is #1 in Customer Satisfaction with Mortgage Origination - J.D. Power",{"type":96,"children":97},"root",[98],{"type":99,"tag":100,"props":101,"children":102},"element","p",{},[103],{"type":104,"value":94},"text",{"title":7,"searchDepth":106,"depth":106,"links":107},2,[],{"data":109,"body":111,"toc":129},{"title":7,"description":110},"For J.D. Power 2025 award information, visit jdpower.com/awards.",{"type":96,"children":112},[113],{"type":99,"tag":100,"props":114,"children":115},{},[116,118,127],{"type":104,"value":117},"For J.D. Power 2025 award information, visit ",{"type":99,"tag":119,"props":120,"children":124},"a",{"href":121,"rel":122},"https://www.jdpower.com/business/awards",[123],"nofollow",[125],{"type":104,"value":126},"jdpower.com/awards",{"type":104,"value":128},".",{"title":7,"searchDepth":106,"depth":106,"links":130},[],{"_path":132,"_dir":133,"_draft":6,"_partial":6,"_locale":7,"slug":91,"content":134,"_id":135,"_type":78,"title":136,"_source":80,"_file":137,"_extension":78},"/disclosures/default","disclosures","This page provides general information regarding mortgages or home equity lines of credit. Citi's offerings and lending guidelines may be different. This content is for educational purposes. It is not intended to provide legal, investment, tax, or financial advice and is not a substitute for professional advice. For advice about your specific circumstances, you should consult a mortgage professional and refer to the information and disclosures provided to you by the lender you choose regarding its products and services.\n\nTerms, conditions and fees for accounts, programs, products and services are subject to change without notice. This is not a commitment to lend. All loans and offers are subject to standard underwriting guidelines and required conditions. This offer contains information about U.S. domestic financial services provided by Citibank, N.A. and is intended for use domestically in the U.S. Certain restrictions may apply on all programs.","content:disclosures:default.json","Default","disclosures/default.json",{"_path":139,"_dir":133,"_draft":6,"_partial":6,"_locale":7,"content":140,"slug":141,"_id":142,"_type":78,"title":143,"_source":80,"_file":144,"_extension":78},"/disclosures/spanish-language-disclosure","\u003Csup>†\u003C/sup>Please be advised that verbal and written communication from Citi may be in English as we may not be able to provide servicing related communications in all languages. These communications may include, but are not limited to, account agreements, statements and disclosures, change in terms or fees; or any servicing of your account. If you need assistance in a language other than English, please contact us as we have language services that may be of assistance to you.\n\n\u003Cspan lang=\"es\">Por favor, tenga en cuenta que las comunicaciones verbales y escritas de Citi podrían estar únicamente en inglés, ya que, tal vez, no podamos proporcionar comunicaciones relacionadas con los servicios en todos los idiomas. Estas comunicaciones podrían incluir, entre otras, contratos, divulgaciones y estados de cuenta, cambios en los términos o en los cargos, así como cualquier documento de mantenimiento de su cuenta. Si necesita ayuda en un idioma distinto al inglés, por favor, comuníquese con nosotros, ya que tenemos servicios de idiomas que podrían serle útiles.\u003C/span>","spanish-language-disclosure","content:disclosures:spanish-language-disclosure.json","Spanish Language Disclosure","disclosures/spanish-language-disclosure.json",{"data":146,"body":148,"toc":159},{"title":7,"description":147},"This page provides general information regarding mortgages or home equity lines of credit. Citi's offerings and lending guidelines may be different. This content is for educational purposes. It is not intended to provide legal, investment, tax, or financial advice and is not a substitute for professional advice. For advice about your specific circumstances, you should consult a mortgage professional and refer to the information and disclosures provided to you by the lender you choose regarding its products and services.",{"type":96,"children":149},[150,154],{"type":99,"tag":100,"props":151,"children":152},{},[153],{"type":104,"value":147},{"type":99,"tag":100,"props":155,"children":156},{},[157],{"type":104,"value":158},"Terms, conditions and fees for accounts, programs, products and services are subject to change without notice. This is not a commitment to lend. All loans and offers are subject to standard underwriting guidelines and required conditions. This offer contains information about U.S. domestic financial services provided by Citibank, N.A. and is intended for use domestically in the U.S. Certain restrictions may apply on all programs.",{"title":7,"searchDepth":106,"depth":106,"links":160},[],{"data":162,"body":164,"toc":187},{"title":7,"description":163},"†Please be advised that verbal and written communication from Citi may be in English as we may not be able to provide servicing related communications in all languages. These communications may include, but are not limited to, account agreements, statements and disclosures, change in terms or fees; or any servicing of your account. If you need assistance in a language other than English, please contact us as we have language services that may be of assistance to you.",{"type":96,"children":165},[166,177],{"type":99,"tag":100,"props":167,"children":168},{},[169,175],{"type":99,"tag":170,"props":171,"children":172},"sup",{},[173],{"type":104,"value":174},"†",{"type":104,"value":176},"Please be advised that verbal and written communication from Citi may be in English as we may not be able to provide servicing related communications in all languages. These communications may include, but are not limited to, account agreements, statements and disclosures, change in terms or fees; or any servicing of your account. If you need assistance in a language other than English, please contact us as we have language services that may be of assistance to you.",{"type":99,"tag":100,"props":178,"children":179},{},[180],{"type":99,"tag":181,"props":182,"children":184},"span",{"lang":183},"es",[185],{"type":104,"value":186},"Por favor, tenga en cuenta que las comunicaciones verbales y escritas de Citi podrían estar únicamente en inglés, ya que, tal vez, no podamos proporcionar comunicaciones relacionadas con los servicios en todos los idiomas. Estas comunicaciones podrían incluir, entre otras, contratos, divulgaciones y estados de cuenta, cambios en los términos o en los cargos, así como cualquier documento de mantenimiento de su cuenta. Si necesita ayuda en un idioma distinto al inglés, por favor, comuníquese con nosotros, ya que tenemos servicios de idiomas que podrían serle útiles.",{"title":7,"searchDepth":106,"depth":106,"links":188},[],{"label":190,"slug":191},"Escrow","escrow",[193],{"_path":194,"_dir":195,"_draft":6,"_partial":6,"_locale":7,"readTime":196,"l1":195,"linkNav":197,"heroMedia":201,"teaserImage":204,"outro":7,"slug":206,"sections":207,"date":235,"subheadline":236,"headline":237,"dateModified":238,"isFeatured":6,"tags":239,"link":242,"seo":245,"hasSectionNavigation":27,"_id":248,"_type":78,"title":249,"_source":80,"_file":250,"_extension":78,"tagsDetails":251},"/articles/home-buying/what-is-escrow","home-buying",6,{"introText":198,"text":199,"to":200},"Ready for the next step?","Connect with a Citi Specialist","/contact",{"landscape":202,"portrait":203},"/media/article-what-is-escrow__-mobile-768x512.jpg","/media/article-what-is-escrow__-desktop-520x638.jpg",{"src":205},"/media/article-what-is-escrow__-teaser-500x500.jpg","what-is-escrow",[208,211,214,217,220,223,226,229,232],{"title":209,"content":210},"What is escrow?","Escrow is essentially a safety net made for financial arrangements. A neutral third party, called an escrow provider, holds onto the money until everyone involved in the transaction meets their end of the deal. This setup helps keep everything fair and secure, ensuring that the money only gets moved when all agreed-upon conditions are met. That’s your basic escrow meaning, but let’s see how it actually works.",{"title":212,"content":213},"How does escrow work?","When you get a [mortgage](/home-loans/articles/what-is-a-mortgage), your lender might set up an escrow account for you. Each month, a portion of your [mortgage payment](/calculators/monthly) goes into this account. Then, when house-related bills come due––think property taxes and insurance premiums––the lender uses this account to pay them on your behalf.",{"title":215,"content":216},"What is an escrow account?","We know it’s a special type of account where funds are held securely by a third party, but let’s break it down even further by scenario.\n\n### Escrow accounts for home buying\n\nWhen you finally find a house that checks all the boxes, you’ll want to show the seller you mean business. That’s when you’ll put down an [earnest money](/home-buying/articles/what-is-earnest-money) deposit. It’s a way of demonstrating that you’re a serious contender in a competitive housing market. This cash goes into an escrow account and stays there until everything in the deal is squared away and the keys are in your possession. It keeps both you and the seller feeling secure, knowing that money will only be exchanged when sale conditions are met.\n\n### Escrow accounts for taxes and insurance\n\nOnce you’re a homeowner, escrow accounts can be lifesavers for managing property taxes and insurance premiums. Every month, your mortgage servicer will collect a portion of your payment and put it into your escrow account. When it’s time to pay those bills, the money is already there. (Cue the happy dance.)",{"title":218,"content":219},"Who manages an escrow account?","Managing money (especially yours) is a big responsibility. So, who’s in charge of this crucial task?\n\nWhen buying or selling a home, an escrow account is usually managed by an escrow officer or agent. This person is typically associated with the title company or a bank that conducts the [closing](/home-buying/articles/closing-on-a-house) of your home purchase or sale. They act as a neutral third party to ensure that all the financial transactions between the buyer, seller and lender are handled smoothly and that the terms of the purchase agreement are met before any funds or property titles are exchanged.\n\nThe escrow officer also oversees the funds meant for property taxes and insurance, ensuring these are paid out correctly and on time. This helps make the financial side of buying a home more secure and less stressful for everyone involved.\n\n### Escrow companies and escrow agents\n\nThese are the neutral third parties that manage the whole process. You can rest assured that they’re regulated by state laws and operate under strict guidelines to protect your money. Escrow companies or agents come into play specifically during the transaction of buying or selling property. Their main tasks include:\n\n* **Holding funds**: Escrow agents hold onto the funds in a neutral account during the transaction process until all conditions of the sale are met.\n* **Overseeing documentation**: They manage the paperwork associated with the transaction, ensuring that all documents are signed and legally binding.\n* **Acting as a neutral third party**: They ensure that no funds or property change hands until all terms of the agreement (like [home inspections](/home-buying/articles/what-is-a-home-inspection), mortgage approvals and other contingencies) are fulfilled.\n* **Closing the transaction**: Once all conditions are met, the escrow agent disburses the funds and documents accordingly to close the sale.\n\n### Mortgage servicers\n\nNo need to fret over deadlines; mortgage servicers are companies that manage your mortgage after you’ve [closed](/home-buying/articles/closing-costs) on your home. Their responsibilities include:\n\n* **Collecting monthly payments**: They handle the collection of your monthly mortgage payments.\n* **Managing escrow accounts**: If your mortgage includes an escrow account for taxes and insurance, the servicer will manage this account, ensuring that these bills are paid on time from the funds you contribute each month.\n* **Handling customer service**: They are your go-to for any questions or issues related to your mortgage.\n* **Processing loan modifications and refinancing**: If you need to change the terms of your mortgage or [refinance](/refinancing/articles/rate-and-term), the servicer is who you’ll deal with.\n* **Managing defaults**: If you’re having trouble making payments, the servicer will manage the process, including a [short sale](/home-buying/articles/what-is-a-short-sale) or potential foreclosure.",{"title":221,"content":222},"The benefits of an escrow account","As we’ve seen, there are plenty of perks to an escrow account, but here’s a breakdown to make it crystal clear:\n\n### For home buyers\n\nAn Earnest Money Deposit (EMD) tucked safely away in escrow is the edge you may need to tip the scales in your favor, especially if there's a tie between offers. Whether it's a set amount or 1% to 3% of the home's price, this tells the buyer you mean business.\n\n### For homeowners\n\nFor homeowners, the convenience of having taxes and insurance premiums managed by a mortgage servicer in what is known as an impound account is a huge plus. This setup helps ensure that bills get paid on time and helps you avoid large lump-sum payments at the end of the year.\n\n### For lenders\n\nLenders are big fans of escrow accounts, too. This setup helps lenders feel secure because they know your property taxes and insurance premiums are being paid on time. This lowers their risk and can even get you a lower interest rate on your mortgage.\n\nSince the lender technically owns your property until it’s paid off, they want to be sure it’s always insured.",{"title":224,"content":225},"The disadvantages of an escrow account","Of course, everything in life is about trade-offs, so here are some downsides to consider.\n\n### Higher monthly mortgage payments\n\nWhile escrow accounts that are part of your mortgage loan for property taxes and homeowner’s insurance ensure bills get paid, they do amount to higher mortgage payments. The trade-off here is the convenience of paying one big bill instead of several smaller bills, all due at different times. This is just something to keep in mind when setting up your budget.\n\n### Lower escrow estimates than required\n\nSometimes, the initial estimates for your payments might be too low, which can cause a shortage. When this happens, your monthly payment will need to increase to cover the gap. It's an unwelcome surprise, so it's good to stay informed and prepared for possible adjustments.\n\n::tip{icon=\"Bulb\" title=\"PRO TIP\" text=\"To help keep everything on track and avoid surprises, make it a habit to check your statements and chat with your lender about any changes.\"}\n::",{"title":227,"content":228},"What escrow accounts don’t cover","Escrow accounts are great, but they don't cover everything. They don't handle non-escrow-related expenses like home maintenance or HOA fees.",{"title":230,"content":231},"Do you need an escrow account?","Well, it depends on your circumstances. Some lenders require it; for others, it’s optional. It can be a helpful tool for managing property taxes and insurance, but it also comes with added responsibilities. If you prefer to manage your own “escrow” account, you can stash that cash in an interest-earning account. If you’re really good with money, this may make sense. Just weigh the pros and cons to see what’s right for you.",{"title":233,"hideTitle":27,"content":234},"Escrow FAQs","::faq{headline=\"Escrow FAQs\" :faqs='[{\"question\":\"What is escrow balance?\",\"answer\":\"The escrow balance is the total amount in your escrow account at any given time. It can fluctuate throughout the year as payments are made into and out of the account. Keeping an eye on your escrow balance is a good idea as it can help you understand where your money is going and ensure that there are always enough funds available to cover these important expenses.\"},{\"question\":\"What is an escrow agreement?\",\"answer\":\"An escrow agreement is a contract outlining the terms and conditions under which the agent will hold and disburse funds. It's the rulebook for how the money is managed.\"},{\"question\":\"What does it mean to be in escrow?\",\"answer\":\"Being “in escrow” means that the funds and documents required for a transaction are being held by a neutral third party until all conditions of the agreement are met. It provides assurance that everything goes according to plan.\"}]'}\n::","2024-09-30T13:43:00.000Z","Ever wonder how your money stays safe during the home buying process? Well, this is where escrow comes in. Escrow is like the trusty middleman you never knew you needed, helping ensure everyone plays fair. Let’s learn more about it.","Escrow: what is it and how does it work?","2026-04-22T09:14:00.000Z",[240,191,241],"first-time-buyer","down-payments",{"introText":243,"text":199,"to":200,"body":244},"Still weighing your options?","Citi can help guide you through the entire home buying process.",{"title":246,"description":247},"What Is Escrow?","Discover how escrow works and their purpose in home buying. Get insights into escrow balances and their role in managing transactions.","content:articles:home-buying:what-is-escrow.json","What Is Escrow","articles/home-buying/what-is-escrow.json",[252,256,257],{"label":253,"slug":240,"seo":254},"First Time Buyer",{"description":255},"Learn more about first time buyer with helpful articles, tools, and guides to support your homeownership journey.",{"label":190,"slug":191},{"label":258,"slug":241,"seo":259},"Down Payments",{"description":260},"Learn more about down payments with helpful articles, tools, and guides to support your homeownership journey.",1776875737054]