When and Where did I Find this Word: I met with my mortgage consultant last week and we talked about approving my mortgage. He used a whole bunch of words in our conversation that I have heard other people use, but I was not quiet sure of the meaning. One of the words he discussed with me was escrow.
What does the word mean: According to Dictionary.com (2010), an escrow is an agreement or contract by a third party that guarantees a fulfillment of a condition or payment. In my case, my escrow was an agreement to pay for my mortgage loan and the interest from the loan. http://dictionary.reference.com/browse/escrowMy familiarity with the word: I have heard my parents and aunts and uncles use the word escrow before in regards to purchasing homes. However, I associated the word escrow with home purchasing, but I had no idea what the actual meaning of the word was. It was a good thing I had family members with me who could explain these new real estate vocabulary words to me as I signed important paperwork.
Do I Believe this is a Word that I should Know Well: Yes, as a first time home buyer, I should be familiar with important words that are associated with the home buying process. The term escrow showed up on many of the paperwork forms that I needed to sign to be approved for a loan. Before signing paperwork of such importance, I think I should know the full meaning of words that I will be legally bound to.
Do You Believe this is a Word You Want Others to Know Well: Yes, I do believe that others should know that an escrow is basically a contract that you agree to. Although not everyone may purchase a house, an escrow can be a term that commits a person to a payment or contract of some sort. The picture I have inserted represents signing a contract and agreeing to fulfill that agreement.
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