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).

To see if your loan is eligible for removing escrow, contact us via:

• Message Center: Select the envelope icon in the upper-left corner, once you are signed in.
• Email: [email protected]
• Mail:
  USAA Federal Savings Bank
  PO Box 610788
  Dallas, TX 75261
• Fax: 855-260-5034
• Phone: 855-430-8489

Next Steps:

• We’ll send you a letter that advises if you are eligible for escrow removal.
• If approved, we’ll remove the escrow account and send you a final letter with your new monthly payment amount.
• We’ll also let you know if you have an escrow refund headed your way.

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.