If you have a Wells Fargo mortgage, you may be wondering how you can remove your private mortgage insurance (PMI). In this blog post, we’ll provide an overview of what PMI is and how you can get rid of it.
What is PMI?
Private mortgage insurance is insurance that protects the lender in the event that the borrower defaults on their loan. If you put less than 20% down on your home, chances are that you’re required to pay PMI. This insurance can add hundreds of dollars to your monthly mortgage payment, so it’s understandable why you might want to get rid of it as soon as possible.
How to Remove PMI from Your Wells Fargo Mortgage
If you have a Wells Fargo mortgage, there are a few different ways to remove your PMI:
- Request automatic termination. If your loan was issued on or after July 29, 1999, your PMI will be automatically terminated when you reach 22% equity in your home. To check if you’ve reached 22% equity, you can request a home value estimate from Zillow.com or another online real estate website. Once you have an estimate, simply subtract your remaining mortgage balance from the value of your home. If the resulting number is greater than 22%, then your PMI should be automatically terminated by Wells Fargo within 30 days.
- Submit a written request. If your loan pre-dates July 29, 1999 or you haven’t reached 22% equity in your home yet, you’ll need to submit a written request to have your PMI removed. You can find the form on Wells Fargo’s website. Be sure to include evidence of your home’s current value, such as a recent appraisal or Zillow estimate. It typically takes around 45 days for Wells Fargo to review and process your request.
- Refinance into a new loan. Another way to remove PMI from your Wells Fargo mortgage is by refinancing into a new loan with a different lender. If you qualify for a conventional loan with another lender, you won’t be required to pay PMI as long as you put down at least 20%. Keep in mind that refinancing comes with its own set of fees and costs, so be sure to do some research and compare offers before deciding if this is the right option for you.
Conclusion:
If you’re paying private mortgage insurance on your Wells Fargo mortgage, there are a few different ways that you can get rid of it. Automatic termination applies to loans issued on or after July 29, 1999 and will occur when you reach 22% equity in your home—you can check yours with a free Zillow estimate.
For loans pre-dating this date or if you haven’t reached 22% equity yet, simply submit a written requests form available on Wells Fargo’s website along with evidence of current home value. Finally, another option is to refinance into a new loan with another lender—just make sure they offer conventional loans so that you won’t be required to pay PMI if you put down at least 20%.
