What is escrow disbursement?

My bank that I have my mortgage through sent me an email letting me know about my upcoming escrow disbursement. I don’t know what that means, though. What is escrow disbursement?

Melanie Mergen · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Great question! Your escrow disbursement is when your escrow makes a payment.
Your escrow account holds part of your mortgage payments. The money in your escrow is for your
homeowners insurance
, property taxes, and other expenses.
While escrow account and disbursement laws vary from state to state, an escrow agent is typically responsible for paying these funds on an exact date. As long as you inform your lender about any bills or ensure their address is listed, you shouldn’t have any issues with payment.
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