In this session of Mortgages with Melinda, we're diving into essential mortgage terms every homeowner should know. Whether you're new to owning a home or looking to refresh your knowledge, this episode has you covered.

Today, we're starting with the term "escrow." Escrow serves two main purposes in the homebuying process. Initially, it involves placing funds in escrow when you enter into a contract, much like a security deposit for an apartment. This money ensures the commitment to purchase the home is genuine and is typically held by a title company, real estate office, or attorney until closing.

It's important not to confuse this with escrowing for taxes and insurance. In this scenario, a portion of your monthly mortgage payment is set aside to cover annual expenses, ensuring you're prepared when these bills come due.

Find out more about appraisals, surveys and inspections as we cover all of the terms you need to know as you purchase your next home.

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