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Escrow Accounts Learn How They Work

Do I Have To Have an Escrow Account?

If you are purchasing an investment property or the LTV on the home you are purchasing is more than 80%, then an escrow account is required.

How it works:
A portion of your monthly mortgage payment goes directly to your mortgage (principal and interest) and the remainder is allocated to your escrow account to cover property taxes and insurance. When the individual bills are due, your lender will pay them with funds from your escrow account.

How Is an Escrow Account Established?

An escrow account is established as a convenient way to manage property taxes and insurance for your home. Sometimes referred to as an "impound account", escrow accounts allow you to make one monthly payment, instead of paying individual bills when they are due.

How it works:
An escrow account is required with Truliant if you are purchasing an investment property or the LTV on the home you are purchasing is more than 80%.

Explore our Learn Center for more helpful home buying resources like calculators.