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If the taxes are not paid, the tax authority could place a lien on the property that would have a higher priority than the lender's lien.



If you want to check the calculation, I explain how to do it on my Web site, see “How Do I Figure Escrows?” Reasons for Avoiding Escrows: The least important reason borrowers may want to avoid escrow is to capture the interest earnings on the account for themselves. I explain how to measure the interest earnings on my Web site in “Should I Escrow?


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