Benefits of Removing Escrow:

• It keeps money in your account to possibly accrue interest.
• You are in control and know what is being paid and when.
• You have more flexibility with insurance carrier changes. (They must still meet our requirements, including a B+ rating from A.M. Best.)

Drawbacks of Removing Escrow:

• It may be a hassle to budget for large, lump-sum property tax and insurance bills.
• If payments are late or missed, you will be responsible for any penalties or fees.

The eligibility for removing escrow is loan-specific, and can vary by state, so the best way to determine eligibility is to contact us. However, here are some general rules that may apply:

• The loan cannot have had escrow force-placed in the past.
• The loan cannot be an FHA loan.
• If the loan has been modified where escrow is a requirement, it cannot be removed.
• The loan-to-value (LTV) ratio must be 80% or less.
• Flood insurance cannot be removed in certain cases when coverage is required.
• The escrow account must have a positive balance (no escrow advances that haven’t been repaid).

If eligible, you can submit an escrow removal request from your online account.

• You’ll be able to select which eligible escrow items—like home insurance or property taxes—you want reviewed for removal.
• If you change your mind, you can cancel the request within 7 business days.
• Your request will be reviewed and processed within 7–15 business days.

Next Steps:

• Status updates will be communicated via mail or email and in the Message Center.

• If Approved:

  • You’ll see the updates reflected in your online account within 24 hours.
  • We’ll send you a confirmation letter with your new monthly payment amount and the date it takes effect.
  • We’ll also let you know if you have an escrow surplus refund headed your way.

• If Denied: We’ll send you a letter that explains the reason(s) for the denial.

For more considerations on escrow removal, see our blog “How To Remove an Escrow Account From Your Mortgage: Pros & Cons.”

If you change your mind, it’s important to know that it takes about 30 calendar days to open an escrow account again, depending on how soon you sign and return the agreement. Therefore, you’ll want to pay any property taxes or insurance premiums due within the next 60 days to ensure nothing is missed.

Here’s how to add an escrow account.