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I just got off the phone with Wells Fargo to try to close my escrow account on my mortgage (prefer to just manage taxes & insurance myself).

I'm currently at an LTV of 75%, and after doing some quick research it seems like 80% is pretty much the standard for allowing removal of escrow. I was surprised when Wells Fargo told me 65% was necessary.

Even quoting their FAQ page about escrow accounts

Most of the time, escrow accounts are required if your down payment was less than 20%.

seems to imply an LTV of 80% would warrant closing an escrow account if desired.

Does this seem highly unusual, or would this be considered a fairly typical ratio?

Adam Johns
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1 Answers1

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I got Wells Fargo to mail me a document outlining all the requirements for closing my escrow account.

It turns out whoever I was speaking with on the phone was just wrong. The document stated as long as the house is my primary residence (it is), I only need to have an LTV ratio of 80% to close the escrow account.

I called back and requested closing the escrow account, and didn't have any trouble.

Adam Johns
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