Taxes & Insurance

Can I pay my own property taxes and insurance instead of using escrow?

Updated Jul 1, 2026

The short answer

Sometimes. Depending on your loan type, down payment, and lender, you may be able to waive escrow and pay property taxes and homeowners insurance yourself, occasionally for a small fee or slightly higher rate. Waiving escrow gives you control of the cash flow but makes you responsible for paying large bills on time — missing them can have serious consequences, including a forced escrow account.

Key points

  • Escrow waivers depend on loan type and equity.
  • Waiving may carry a fee or rate adjustment.
  • You take on responsibility for timely large payments.
  • Missed taxes or insurance can force escrow back on.

Weighing the trade-off

Escrow smooths big annual bills into monthly amounts and ensures they are paid. Self-paying suits disciplined budgeters who prefer control, but it concentrates risk if a payment is missed.

Sources

Every claim above traces to a public government source.

  • T1Can I get my own homeowners insurance and pay taxes myself?

    Consumer Financial Protection Bureau · Government / primary · 2024

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  • T1What is an escrow or impound account?

    Consumer Financial Protection Bureau · Government / primary · 2024

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