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An initial escrow deposit is the amount that you will pay at closing to start your escrow account, if required by your lender. This initial amount may be different from what you pay monthly to maintain the escrow account.
The lender typically requires an escrow account when the borrower is a first-time buyer, has made a down payment of less than 20 percent or has an otherwise risky mortgage loan. The lender may also require an escrow impound account if the borrower has failed to manage the tax and insurance payments on his own.