If you are required to have a mortgage escrow account, your lender will determine the amount you must deposit into escrow when you close on your home. Often, this is enough to cover several months of property taxes and insurance. Your lender will also calculate how much money you should pay each month as part of your mortgage payment to fully cover the bills for property taxes and insurance on your home. The money you initially deposit and the monthly payments you make will be deposited into your escrow account. Your property taxes and insurance bills will be sent to your lender, who will use the funds in your account to pay them. Escrow accounts are designed to ensure these bills are covered.