An escrow account is used by the lender or mortgage company to set aside money to pay off certain expenses that come with owning a home such as homeowners' insurance and property taxes. An escrow account is sometimes required by certain lenders when buying a home. It is an amount of money above and beyond the principal and interest the homeowner is paying for the home. The amount of the monthly payment is calculated after looking at the property value and coming up with a number for the amount the homeowner will most likely pay in taxes and insurance for the property. An escrow account could possibly change the amount of the monthly mortgage payment if the homeowners property taxes or other fees fluctuate from year to year. Most lenders require a minimum amount of money to be held in escrow at all times.