Earn $25 CASH per qualified ChartSnap Founder referralUnlimited referralsNo purchase required—Join the Affiliate Program →

Mortgage Glossary

Escrow Cushion

Mike Starr·Reviewed August 2026

An escrow cushion is a small reserve — typically two months of escrow payments — that lenders are permitted to maintain in a borrower's escrow account as a buffer against unexpected increases in property taxes or insurance. Federal law (RESPA) limits the cushion to two months of estimated escrow payments to prevent over-collection.

Cookie Notice

We use cookies for analytics and advertising (Google Analytics and AdSense) to improve your experience. By clicking "Accept," you consent to the use of these cookies. See our Privacy Policy for details.

Ad Settings