Escrow
An escrow account is a holding account your mortgage servicer uses to collect and pay your property taxes and homeowners insurance on your behalf. A portion of each monthly payment goes into escrow, so large annual tax and insurance bills are spread evenly across the year instead of hitting all at once.
Servicers review escrow accounts annually and adjust the monthly amount as taxes and insurance premiums change, which is why a mortgage payment can rise even on a fixed-rate loan. The word 'escrow' also refers to the neutral third party that holds funds during a home purchase.