Daedalus

I thought it was the buyer's option. I think I remember being able to choose to not have an impound account. It made no difference to the loan terms.

So does your payment go up when the taxes go up, and vice versa? Does the monthly statement reflect tax changes?

Cubsfan

I think it's always an option, but with certain loans I think they require it (like, say a 100% or 95% loan). I think that once that loan drops below some threshold you can change it so that it's not taken out.