The FairTax Book When you pay your mortgage, do you know everything that’s included in your mortgage payment? Oftentimes, it can be more than just the standard monthly principal and interest. When you own a home, you are also required to pay for your annual property taxes and home insurance. But this can become tedious. So lenders require you to deposit money into an escrow account to make sure your taxes and insurance are paid. It is possible to avoid escrow and pay your own taxes and insurance. Usually, this is done if your loan-to-value ratio (LTV) is less than 80 percent. If it is more than 80 percent, you may be required to escrow until the mortgage is paid down to less than 80 percent LTV.

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