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For escrows of computer source code, see source code escrow. An escrow is: a contractual arrangement in which a third party receives and disburses money or documents for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties, or.
Escrow accounts allow you to pay insurance and taxes when the mortgage is due. Many first-time buyers need additional help managing the costs of home ownership, such as taxes and insurance.