Personally I don't have an escrow account and I prefer it this way. Some banks will penalize you for not using one by raising your interest rate or charging you a fee but fortunately I don't have that problem. I have a high yield savings that I put money in each month to cover the taxes, which is like an escrow account, but I'm in control of it and I get to keep the interest. I hate the required buffer - I do have a buffer but it's not as big as the back requires. Also my last house I had an escrow and the bank paid my taxes twice (because I refinanced, I was required to pay the next year's taxes up front at closing. Then the bank paid them a second time). It was a huge pain to get it sorted out. So I like having complete control over how and when my taxes get paid. I know some people don't have the discipline to save the right amount of money over the course of the year and not touch it, but I do and I'm a better steward of my money than my mortgage company.