Profile picture for JohnAndMonicaMiller

Wells Fargo refusing to remove PMI when I paid down my principal

I have a loan with Wells Fargo and I paid an additional 6500.00 in principal to lower my LTV to 78% based on the original value of my home.  I used the Appraisal as the original value because nothing else in my closing documents indicates "VALUE"  .Wells Fargo is telling me that value is based on my original loan amount  or the appraised value which ever is lower. No where in my documents does it indicate  that  either or statement. It only states original value but does not indicate how "original value" is determined. My PMI is not scheduled to be at 78% till 2017. My home was purchased in 2008 and as is standard across the country I would not be able to get an acceptable value by having a new appraisal.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 23 2012 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (11)

Profile picture for JohnAndMonicaMiller
It was not the question of 78 % but the question of that percent of which figure.  I paid it to   78% of the original estimated value, and Wells Fargo was sending me information about re-finances based on this number but once I paid that I was told that no they were using the purchase price not the amount they had been sending me.  It seems that they have a problem in their systems, One department does not communicate with another.  I do have a wonderful lady who is dillegently helping me now.  It cost me an additional $6000 which really did not make me too happy but we reached the target of 78% on monday.  I appreciate everyone's comments and assistance on this. The pmi should be automatically removed by Friday.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 22 2013
JohnandMonicaMiller - you have to actually reach the 78% mark and THEN inform your loan servicer....looks like you did the math correctly, which typically shows that when you start with the minimum down payment, and only make your minimum payments, it takes roughly 9 yrs to reach the 22% equity mark, well beyond the minimum 5 yr holding period..
If you haven't already done so, check your home's value now to see how close you are to the 20% mark now....if you think you're there, reach out to a good local mortgage broker and seriously investigage doing a refi!

Best of luck, Jeff M
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 21 2013
Julier it sounds like you might have an FHA loan?   If you have FHA loan, the 5 year requirement is from FHA, not Wells Fargo, and should have been explained to you when the loan was obtained.  
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 12 2013
Profile picture for julier412
I had the same experience with Wells Fargo, they said my only option is to re-finance to remove the PMI, but that is was mandatory to pay PMI for 5 years under my original loan...
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 12 2013
You have to pay PMI for 5 years regardless of how much you pay down your original loan amount even if it drops below the 80% of appraised value. 
==========================
wrong.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 14 2012
Hello,

To determine the value the bank would have used to determine PMI, you need to first know the appraisal value and your original mortgage amount, because they use the lesser of these two. If you have a copy of your credit report with your mortgage showing as a trade line, it will show the original note amount, or call your mortgage companies customer service dept. and ask for the information or a copy of the original mortgage docs. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 13 2012
In most cases, you will find that the lender uses the 'CURRENT" appraised value, not the "purchase price."  Its a very unfortunate evil.  If it is an FHA loan, the pmi will remain for a certain number of years.  If your rate is not very favorable, you may want to consider refinancing;  again this is all dependant on the appraised value "today" which is some areas, is not very appealing.  Hope this helps.  Feel free to contact me.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 13 2012
You have to pay PMI for 5 years regardless of how much you pay down your original loan amount even if it drops below the 80% of appraised value.

Excellent question, for more detailed information you should speak directly with your Well Fargo representative.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2012
Profile picture for JohnAndMonicaMiller
They did say original purchase price or appraised value sorry I was not clear on that. My point is the disclosure statement does not say  "Appraised value or purchase price which ever is lower".  It says when the outstanding balance reaches 80% of the original value.
I was attempting to get my home to the 78% level so I would not need a new appraisal due to declining home values.  This is our only home and I do not understand how they can make up their own deffinition of Value when the only item in all of my closing documents that says Value is the appraisal. 
Does anyone know if the  automatic removal at 78% is only "when it is scheduled to reach 78% or if it is when it actually reaches that number?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2012
value is based on my original loan amount  or the appraised value which ever is lower.
====================
They're wrong.

It's based on the lower of the original purchase price or appraised value.

The home was and still is your primary residence?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 23 2012
Keep going up the food chain until you get the answer you want to hear.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 23 2012
 
Related Questions
I got a letter from a company called Loan Payment Administration, Xenia, OH saying that by making my
Profile picture for Kristeen Smith
Latest answer by Kristeen Smith
1 hour 51 minutes ago | 24 answers
preapproval for a mortage
Profile picture for Yee Ng
Latest answer by Yee Ng
13 hours ago | 8 answers
Separating primary homes
Profile picture for Jennifer Ashley
Latest answer by Jennifer Ashley
19 hours ago | 1 answers
How long should I wait to buy again after loan modification?
Profile picture for Casey Lown
Latest answer by Casey Lown
2 days ago | 3 answers
Short payoff on second lien
Profile picture for Crystal Bond
Latest answer by Crystal Bond
6 days ago | 6 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.