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An initial escrow deposit is the amount that you will pay at closing to start your escrow account, if required by your lender. This initial amount may be different from what you pay monthly to maintain the escrow account.
(That kind of escrow is where a neutral third party holds funds, such as earnest money, or documents prior to closing the sale.) With a mortgage escrow account, you must pay the lender a certain amount each month to cover property taxes, homeowners insurance, and private mortgage insurance.ow a Mortgage Escrow Account Works. The lender collects escrow funds as part of your monthly mortgage payment, along with the principal and interest. Approximately one-twelfth of the estimated annual cost of taxes and insurance is paid into the account each month out of your monthly mortgage payment.