How to Cancel a Recurring Mortgage Payment at Wells Fargo?

A recurring mortgage payment is an automatic payment that is set up to pay your mortgage on a regular basis, usually monthly. This can be a convenient way to ensure your mortgage payments are made on time each month. However, there may come a time when you need to cancel your recurring mortgage payments at Wells Fargo. 

The average monthly mortgage payment in the United States in 2022 was $1,813 (Source: Mortgage Bankers Association). With the average payment this high, you want to make sure you have control over when and how these payments are made.

There are a few key reasons you may want or need to cancel your recurring mortgage payments at Wells Fargo:

• You want to switch to making manual payments each month instead of automatic payments. This gives you more control and flexibility.
• You are refinancing your mortgage and will have a new loan with different payment terms.
• You are selling your home and will no longer need to make mortgage payments.
• Your financial situation has changed, and you can no longer afford the recurring payments.

The average mortgage interest rate in the United States in 2022 was 5.91%(Source: Freddie Mac). If interest rates have changed significantly, you may want to reevaluate your mortgage and recurring payments.

Whatever the reason, Wells Fargo provides a few straightforward options to cancel your recurring mortgage payments. Here are the steps:

1. Log Into Your Account

First, log into your Wells Fargo account online or via the mobile app. You will need your username and password to access your account.

2. Navigate to the “Transfer & Pay” Section

Once logged in, navigate to the “Transfer & Pay” section. This is where you can manage payments and transfers.

3. Click on “Transfer & Payment Activity”

Within the “Transfer & Pay” section, click on “Transfer & Payment Activity”. This will show you a list of your pending and completed transfers and payments.

4. Find Your Mortgage Payment and Click “Delete”

Scroll through the list to find your recurring mortgage payment. When you locate it, click the “Delete” button next to that payment. 

The median home value in the United States in 2022 was $428,700 (Source: National Association of Realtors). With home values this high, a mortgage is often required to finance the purchase.

5. Confirm Cancellation

A pop-up will appear asking you to confirm that you want to cancel that recurring payment. Click “Yes” to confirm.

Once you complete these steps, your recurring mortgage payment will be cancelled going forward. 

The average mortgage term in the United States in 2022 was 29.8 years(Source: Mortgage Bankers Association). With such a long commitment, it’s understandable if you need to make changes to your recurring payments during the life of the loan.

If you’re unable to cancel your recurring payment online, you can call Wells Fargo customer service.

Contact Customer Service to Your Automatic Mortgage Payments

If you want to cancel recurring payment from Wells Fargo, there’s another way you can do in order to change your automatic mortgage payments – calling customer service and asking for cancellation.

The number is listed on the Wells Fargo website (1-877-805-7744).

Note that changes in all automatic payments may take up to 30-60 days to be processed. So make sure, when you are on the phone, to ask when the new request will be processed.

What Happens After You Cancel Your Recurring Mortgage Payment?

Once you cancel your recurring mortgage payment, you will need to make arrangements to pay your monthly mortgage amount through another method. Some options include:

• Setting up manual online payments each month.
• Sending a physical check by mail.
• Setting up payments through online bill pay.
• Enrolling in a different auto-pay program.

Be sure to make payments by your due date each month to avoid late fees. 

The median down payment on a home in the United States in 2022 was 6% (Source: National Association of Realtors). The down payment is often a large upfront cost. Cancelling recurring payments provides flexibility in case your financial situation changes.

Can You Reinstate a Cancelled Recurring Mortgage Payment at Wells Fargo?

If you change your mind later, you can reinstate recurring automatic mortgage payments. Just log back into your Wells Fargo account and set up the recurring payment again through the “Transfer & Pay” section. Payments will resume based on the schedule and amount you indicate.

What Are Other Ways to Make Your Mortgage Payments at Wells Fargo?

In addition to online payments and automatic payments, Wells Fargo offers a few other payment options:

• Pay by phone by calling the number on your statement
• Pay in person at a local branch
• Mail a check to the payment address listed on your statement
• Set up payments through the Wells Fargo mobile app

Of all recurring household expenses, mortgage payments account for the largest portion, at an average of 37% of income (Source: Bureau of Labor Statistics). Because it takes up such a significant part of a household’s budget, it’s important to make changes if needed.

Explore which option works best if you need an alternative to recurring automatic payments.

Are There Any Fees for Cancelling a Recurring Mortgage Payment at Wells Fargo?

Wells Fargo does not charge any fees to cancel a recurring automatic mortgage payment. You can cancel your payments online at any time for free.

Just be sure to still make your mortgage payments on time going forward to avoid late fees from a missed or delayed payment. As long as you pay your mortgage on time each month, there are no penalties.

The percentage of homeowners who are behind on their mortgage payments has been steadily decreasing in recent years. In 2022, the delinquency rate was 3.2%, down from 6.6% in 2010 (Source: Mortgage Bankers Association). Having the flexibility to cancel automatic payments can help homeowners avoid delinquency.

What Should You Consider Before Cancelling a Recurring Mortgage Payment?

Before you cancel your recurring mortgage payments at Wells Fargo, consider:

• How will you remember to make payments on time every month without automatic payments set up?
• Is there a chance you may forget or miss making manual payments? Recurring automatic payments help avoid late payments and fees.
• Are you disciplined enough to pay on your own each month without it being automated?
• Does your bank or bill pay service charge any fees for payments that you should be aware of?

Carefully evaluate if cancelling your automatic mortgage payments makes sense for your financial situation. Automatic payments provide a convenience factor to ensure payments are made on time every month.

The number of homeowners who are foreclosing on their homes is also down significantly from the peak of the housing crisis in 2010. In 2022, the foreclosure rate was 0.37%, down from 2.59% in 2010 (Source: Mortgage Bankers Association). Avoiding delinquent payments is key to avoiding foreclosure.

Conclusion

Recurring automatic mortgage payments can provide peace of mind that your mortgage will be paid each month in a timely manner. But if you need to cancel your recurring payments at Wells Fargo, the process is straightforward. 

Simply log into your account online, navigate to the “Transfer & Pay” section, find your mortgage payment, and click to delete it. Just be sure you still pay your mortgage on time going forward through another payment method. Evaluate the pros and cons before cancelling to ensure this makes sense for your financial situation.

Homeowners who make extra payments on their mortgage each month can save a significant amount of money over the life of the loan. For example, making an extra $100 payment each month on a 30-year mortgage at 5% interest can save you over $20,000 in interest (Source: Bankrate). If an automatic payment makes it easier to pay extra, you may want to keep it in place.

With the right preparation, you can successfully cancel your recurring mortgage payments at Wells Fargo when needed. Just be diligent about making payments on time yourself once that automatic payment is cancelled.

There are a number of government programs available to help first-time homebuyers and low-income borrowers afford a home. These programs can offer down payment assistance, lower interest rates, and other benefits (Source: U.S. Department of Housing and Urban Development). Make sure to research available assistance programs when buying or refinancing a home. Taking advantage of these programs can make homeownership more accessible and affordable.