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What is Section G on a Loan Estimate?
Updated November 2026 · Every dollar figure is an illustrative example, not a quoteSection G, Initial Escrow Payment at Closing, is the deposit that opens your escrow account: a few months each of homeowner's insurance, mortgage insurance where it applies, and property taxes, and on the Closing Disclosure an aggregate adjustment trims the total to what the law allows. It is your money held by the servicer to pay those bills, not a fee, and it is an estimate with no tolerance limit.
Where it is on the form
Page 2, right-hand column, under Other Costs, below Section F. Lines for Homeowner's Insurance, Mortgage Insurance and Property Taxes, each as a monthly figure times a number of months. (The Aggregate Adjustment line is added on the Closing Disclosure.) Empty if escrow is waived.
The deposit must get the account to each bill's due date with a cushion of no more than two months of escrow payments. High-tax states and closings a few months before a tax installment push it up. A $380,000 loan in a 1.2% tax county with a $1,800 policy might need around $3,000; the same home in a 2.2% county, more like $5,000.
The lines in G. Initial Escrow Payment at Closing
| Line on the form | Paid to | Illustrative range |
|---|---|---|
| Initial Escrow Payment at Closing | Your own escrow account, held by the loan servicer | Often 2–3 months of insurance plus 2–8 months of taxes; commonly $1,500–$5,000 |
| Aggregate Adjustment (Closing Disclosure only) | Nobody: it is a reduction to your own deposit | Usually zero to a negative few hundred dollars |
Think of G as the first deposit into a savings account that pays your bills. Every month after closing, one-twelfth of the year's taxes and insurance rides along with your mortgage payment into the same account, and when the county or the insurer sends a bill the servicer pays it from there. Section G is only the starting balance that makes the timing work.
Because it is your money, a high Section G is not a bad quote, and a low one is not a good quote. Two lenders will differ here only because they assumed different closing dates, tax figures or premiums. Compare the rate and Section A between lenders; use G and Section F to plan your cash.
Can you shop for it?
No. It follows from your taxes, your insurance and the calendar. The insurance premium behind it is shoppable, and on some conventional loans with 20% or more down you may waive escrow and empty the section.
Can it change between the Loan Estimate and closing?
No tolerance limit. Amounts placed in escrow are expressly outside the tolerance rules; the Closing Disclosure uses the actual figures and the actual closing date. It must still be estimated in good faith.
Questions to ask the lender
- What tax rate, premium and closing date did you assume in Section G?
- Can I waive escrow on this loan, and what does waiving cost?
- When will I get the initial escrow account statement?
Red flags
- A cushion above two months of escrow payments.
- Taxes based on the seller's capped assessment on a home whose taxes will reset at the sale price.
- A Section G that is markedly lower on one estimate, used to make that lender's cash to close look better.
Questions people ask
Is Section G money I get back?
In a sense. It is deposited into your escrow account and spent on your own tax and insurance bills. If you sell or refinance, whatever is left in the account is refunded to you.
Why is Section G different on my two Loan Estimates?
Different assumed closing dates, tax figures or insurance premiums. It is not a lender charge and says nothing about which lender is cheaper. Compare the rate and Section A instead.
Can I waive the escrow account?
On many conventional loans with 20% or more down, yes, usually for a small rate adjustment or a fee. FHA, VA and USDA loans require escrow. Without it, Section G is empty and you pay the tax and insurance bills yourself.
Only have one quote? That's the problem.
Tell us the rate and the fees you were quoted. It is free, there is no credit pull, and nobody calls you. We check whether another lender beats it, fees included. Or start with the free Loan Estimate checker, which reads your rate, points and Section A and flags anything out of the ordinary.
Check my quoteEvery dollar figure on this page is illustrative. Fee ranges are general observations, not a survey or a quote, and are not a loan offer, approval, commitment to lend, or Loan Estimate. Your actual rates and fees depend on qualification with lenders, your state and county, and your closing date. The tolerance rules described are the federal TRID rules in general terms; the rule itself and your own Loan Estimate and Closing Disclosure decide how it applies to your loan. comparemyloan does not negotiate with lenders, lock rates, or take loan applications.