Escrow
Escrow is an account held by a neutral third party that collects and holds money on behalf of two parties in a transaction. In a mortgage, the lender uses an escrow account to collect property taxes and homeowners insurance along with your monthly payment, then pays those bills when due.
Example
If your annual property tax is $3,600 and insurance is $1,200, your lender may add $400 per month to your mortgage payment for escrow.