- advertisement - Escrow makes payments -- even on fixed-rate
mortgages -- variable  Think of it as insurance for the
insurance.  Mortgage escrow accounts exist to help borrowers
accumulate money for property taxes and homeowners' policy
premiums a little at a time. Escrow can help avoid financial
surprises such as missed payments to the government, but foul-
ups can happen and borrowers need to keep a close eye on what
money is going where.  Not everybody needs to set them up, but
home buyers may benefit from using them. "The lender is going to
pay your taxes for you, and many first-time homeowners, that's
the way they prefer it," says Rick Harper, director of housing
for the Consumer Credit Counseling Service of San Francisco.
"They don't want to get stuck with a huge tax bill."  When
people take out long-term, fixed-rate loans, they may not
realize the amount they pay will sometimes fluctuate from year
to year. The culprit that unfixes the fixed loan is the escrow
account. Some people are required to have t