Michael Petruccelli says;
Once you close your purchase transaction, you may have an escrow
account or impound account with your lender. This means the amount
you pay each month includes an amount above what would be required if
you were only paying your principal and interest. The extra money is
held in your impound account (escrow account) for the payment of items
like property taxes and homeowner's insurance when they come due. The
lender pays them with your money instead of you paying them
yourself.
