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Mortgage Insurance - FAQs

What's mortgage insurance premium (MIP) and private mortgage insurance (PMI)?

MIP and PMI are 2 types of mortgage insurance. They add a premium to your monthly mortgage payment but allow you to borrow a larger percentage of your home's value. The type of mortgage insurance you have depends on the type of loan you have. Learn more about how mortgage insurance works.

How do I pay for MIP or PMI?

In most cases, the insurance premium will be added to your monthly mortgage payment. We'll keep the funds in an escrow account for you and pay the bills on your behalf when they're due.

How do I know if I have MIP or PMI?

  • You may have MIP if you have an FHA loan, which is a type of government loan.
  • You may have PMI if you have a conventional loan (non-government loan) and your down payment was less than 20%.

You can also sign on to Wells Fargo Online® and visit the Escrow Details page of your mortgage account to learn which type of mortgage insurance you have.

When can my MIP be removed?

Depending on when you either applied for or closed on your loan, you may be able to request early MIP removal or qualify for a premium end. Learn more about removing MIP.

When can my PMI be removed?

You may have options to remove your PMI based on the original value of your home or by ordering a new appraisal. Your loan's investor may have other options. Learn more about removing PMI.

How do I find my home's original value or LTV?

Your home's original value is either the price you paid for it or the appraised value at closing, whichever is less.

To calculate your LTV, divide the amount you owe on your loan by your home's original value.

Mortgage Balance divided by Home Value equals Loan-to-Value Ratio

Do I need an appraisal to remove my PMI?

If you're requesting to have PMI removed when you reach 80% LTV through the Homeowners Protection Act of 1998 (HPA), you'll need a home value assessment (ordered through Wells Fargo) to confirm your home's value hasn't declined since the date you obtained your mortgage. It also takes into account any significant improvements you may have made to your property. Learn more about removing PMI. If you meet the requirements and want to request to have your PMI removed, please call us at 1-800-357-6675.

What may be considered a significant improvement?

Something that was not previously on the property. It may add extra living space, or be something that raises the home's value.

Examples may include:

  • Adding a deck, garage, in-ground pool, fence, or in-ground sprinklers
  • Finishing a basement
  • Remodeling living space
  • Flooring, siding, roof, or upgraded windows

What if I don't agree with the new home value assessment?

You can dispute the home value assessment if you don't agree with it. Please call us at 1-800-357-6675 for details and a copy of the form you'll need to fill out.

Original value

Either the price you paid for your home or the appraised value at closing, whichever is less.

Homeowners Protection Act of 1998 (HPA)

Your loan is covered by HPA if: