Escrows accounts are mandatory on Conventional loans (Fannie Mae & Freddie Mac) that are over 80% of the homes value. Unless you have a 1st and 2nd lien, therefore avoiding the over 80% rule on the 1st lien. Government insured loans (FHA, VA & USDA) require escrow accounts regardless of the Loan-To-Value. Therefore, for the life of the loan you will be required to keep an excrow account. If you have a conventional loan that has been paid down or increased in value (appraised value) reducing your 1st lein to below 80% you can request escrows be dropped. However, you will be required to pay your property taxes in full each year and purchase a homeowners policy each year.