← Back to glossary
Mortgage glossary
Escrow
An arrangement in which a neutral party holds money or documents until stated conditions are met. During a purchase, escrow may hold the earnest money or closing funds. The exact meaning depends on the stage of the transaction and local practice.
In plain language
This term may appear in conversations, forms, or documents during the mortgage process. If something important changes in your situation, ask how it may affect your case before making a decision.
This explanation is general and educational. It is not personalized advice, a loan offer, or a promise of approval.