Mortgage Insurance - Article - Removing Mortgage Insurance

The requirements for removing your mortgage insurance premium (MIP) or private mortgage insurance (PMI) depend on your loan. Keep in mind the best way to figure out when you can remove your mortgage insurance is to call us. Here are some general guidelines.

Canceling MIP on FHA loans

Depending on when you applied, FHA guidelines may allow for MIP to be canceled if you:

• Applied between January 2001 and June 2013: Please contact us when you meet all three of the following conditions, and we will review your loan for MIP removal eligibility:

1. You’ve maintained a good payment history without any 30-day late payments for the past 12 months
2. When you reach 78% loan-to-value (LTV) based on the original value of your home
3. You have paid MIP for at least 5 years since originating your current first mortgage. Your options may be affected if you’re working with us on payment assistance or your loan has had a partial claim. Please contact us if you want to know whether you can remove your MIP while on payment assistance.
   

• Applied after June 2013: If your original loan amount was less than or equal to 90% LTV, MIP will be removed after 11 years.

Canceling PMI

For loans covered by the Homeowners Protection Act of 1998 (HPA), you can request to have PMI removed when your balance reaches 80% loan-to-value (LTV) based on the original value of your home. If you're requesting to have PMI removed, you:

• Have to get a home value assessment through Wells Fargo (at your own expense) to confirm your home's value hasn't declined since closing
• Must not have had any 30-day late payments within the past 12 months
• Must not have had any 60-day late payments within the last 24 months

Otherwise, we'll automatically cancel it when your balance is scheduled to reach 78% LTV if you're current on your payments.

If your home's value went up since closing, you may be able to cancel your PMI earlier, based on its current value. You'll need to get a home value assessment to confirm its value. Note that in addition to PMI removal options under HPA, the loan's investor may also have cancellation requirements. Be sure to call us at 1-800-357-6675 to get information mailed to you about your specific situation for when you can remove your PMI. See our FAQs to learn more.

Customers in MN, and NY may also have additional options for canceling PMI.

Calculating your LTV

To find your LTV, divide your mortgage balance by the original value of your home.