Can I Remove My Escrow Account?

Short Answer

You may be able to remove your escrow account if your loan meets certain requirements. Some loans are required to keep escrow for the life of the loan and cannot be removed.

What’s Happening

You may be thinking about paying your property taxes and homeowners insurance yourself instead of having them included in your monthly mortgage payment.

An escrow account collects money as part of your monthly payment and pays your property taxes and insurance on your behalf. Removing escrow means you would take over making those payments directly to the tax authority and your insurance company.

Because this changes how your loan is managed, your request must be reviewed and approved.

What It Means for You

In most cases, you may qualify to remove escrow if:

• You have a strong payment history (no recent late payments)
• Your loan balance is below 80% of your home’s original appraised value
• Your property taxes and insurance are current
• Your loan type allows escrow removal

Some loans are not eligible for escrow removal, including:

• FHA loans
• USDA loans
• Certain conventional loan programs
• Some manufactured homes or multi-unit properties
• Loans where escrow is required by the original loan terms

Important distinctions:

• Removing escrow does not change ownership of your property.
• You remain financially responsible for your mortgage loan.
• If escrow is removed, you are fully responsible for paying property taxes and insurance on time.
• Only borrowers listed on the loan — or someone you have authorized — can request or discuss escrow removal.

If you do not pay taxes or insurance on time after escrow is removed, penalties, insurance lapses, or lender-placed coverage could occur.

What You Should Do Next

1. Review your recent payment history to confirm you have no late payments.
2. Confirm your property taxes and homeowners insurance are current.
3. Contact us to request escrow removal and confirm whether your loan allows it.
4. Submit a written request. We will provide instructions after you contact us.

All escrow removal requests must be reviewed before a decision is made. We will notify you in writing once a determination is completed.

Important Information

• A written request is required.
• Approval is not guaranteed, even if you meet general guidelines.
• Some loans require escrow for the life of the loan.
• If approved, any remaining escrow balance will be refunded to you.
• Once removed, you are responsible for paying taxes and insurance directly and on time.
• If taxes or insurance become delinquent, escrow may be re-established.

Contact Us If

• You’re unsure whether your loan requires escrow
• You want to check if your loan qualifies
• You have questions about how your payment would change
• You need instructions on how to submit a written request