Am I Eligible to Remove Escrow From My Mortgage?

Short Answer

You may be eligible to remove escrow if your loan type, loan balance, and payment history meet specific requirements. Some loans are not eligible for escrow removal at all.

What’s Happening

You may want to take over paying your property taxes and homeowners insurance yourself instead of having them included in your monthly mortgage payment.

Before escrow can be removed, your loan must be reviewed to confirm it meets certain guidelines. Approval is not automatic, even if you believe you qualify.

What It Means for You

Eligibility to remove escrow is typically based on:

• Loan type – Some loans, including many FHA and USDA loans, require escrow for the life of the loan.
• Loan balance compared to your home’s value – In most cases, your remaining loan balance must be less than 80% of the home’s original appraised value.
• Payment history – You generally must have a strong payment history with no recent late payments.
• Loan terms and investor guidelines – Some loan agreements do not allow escrow removal.

You are generally not eligible if:

• Your loan requires escrow under its original terms
• Your loan is government-backed and does not permit escrow removal
• Your loan is currently delinquent or was recently seriously past due
• You previously had escrow removed and failed to make required payments

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 eligibility.

Meeting general guidelines does not guarantee approval. Every request must be reviewed.

What You Should Do Next

1. Review your recent payment history to confirm you have no late payments.
2. Check your current loan balance.
3. Contact us to request an escrow removal eligibility review.
4. Submit a written request once instructed. We will provide next steps after you contact us.

You will receive written notice once the review is complete and a decision has been made.

Important Information

• Not all loans qualify for escrow removal.
• Approval is not guaranteed, even if you meet common eligibility standards.
• If approved, you must pay property taxes and insurance directly and on time.
• If taxes or insurance are not paid, escrow may be re-established.
• State laws, investor rules, and loan terms may affect eligibility.

Contact Us If

• You’re unsure what type of loan you have
• You want to confirm whether your loan allows escrow removal
• Your loan status recently changed
• You have questions about your payment history or loan balance
• You want to request an eligibility review