Private mortgage insurance, or PMI, protects your lender, not you, and on a typical Houston-area mortgage it can add a meaningful monthly cost. The good news is that on many conventional loans you do not have to pay it for the life of the loan. This guide explains how PMI comes off in Texas, which rules apply, and when a current appraisal helps.
Updated October 2026. This is general information, not legal or financial advice. Rules vary by lender and loan type, so confirm the details with your servicer.
Three ways PMI can end
1. Automatic termination at 78%
Under the federal Homeowners Protection Act, PMI on most single-family primary residences closed on or after July 29, 1999 ends automatically when your loan balance is scheduled to reach 78% of the home’s original value, as long as you are current on payments. If you are behind, it waits until you catch up.
2. You ask at 80%
You can request cancellation in writing once your balance is scheduled to reach, or actually reaches, 80% of the original value. Lenders typically want a good payment history, no second liens on the property, and sometimes proof that the value has not declined. Original value usually means the lesser of the purchase price and the original appraisal.
3. You ask based on today’s value
If your home has gained value, through market appreciation or improvements, you may be able to cancel earlier based on its current value. This is not part of the federal law, so each investor sets its own terms. For many Fannie Mae and Freddie Mac conventional loans on a one-unit home you live in, the general framework is:
- The loan is at least 2 years old.
- The loan-to-value ratio is 75% or less if the loan is between 2 and 5 years old, or 80% or less if it is over 5 years old.
- Your payments are in good standing, typically with no payment 30 days late in the past 12 months and none 60 days late in the past 24 months.
- If the 2-year minimum was waived because of major improvements, the required ratio is usually 80% or less.
Routine repairs usually do not count as improvements. Kitchen or bath remodels and added square footage generally can. Your servicer makes the final call, and it cannot solicit this request from you, so you have to ask.
When an appraisal helps
For a current-value request, the lender must verify your loan-to-value ratio with a valuation based on an interior and exterior inspection. An independent appraisal to remove PMI documents the value with comparable sales from your neighborhood. Before you pay for one, ask your servicer these questions:
- Will you accept an appraisal I commission, or do you order your own?
- Do you require a specific form, a licensed appraiser, or a particular effective date?
- What loan-to-value ratio do you need based on how old my loan is?
- Do my improvements qualify, and what proof do you need?
If your servicer accepts a borrower-ordered appraisal, we can complete it for homes across Greater Houston, including Katy, Sugar Land and Missouri City, The Woodlands and Spring, and Pearland and Friendswood. Reports follow USPAP and are delivered in under 4 days.
A simple PMI removal checklist
- Find your original loan amount and original value on your closing documents.
- Check your servicer’s PMI cancellation policy and request form.
- Make sure your payments are current and you have no second lien.
- Gather records of any major improvements, including dates and costs.
- Ask whether an outside appraisal will be accepted, then order it if so.
- Submit your written request with the appraisal and supporting documents.
- Confirm in writing when the PMI charge stops and that any unearned premium is refunded.
Frequently asked questions
Can I remove PMI just because my Houston home went up in value?
Possibly. Many conventional lenders will review a request based on current value once the loan is at least two years old, the payment history is clean and the loan-to-value ratio is low enough. The exact test is set by your servicer and the investor behind your loan, so ask them before you order anything.
Do I need an appraisal to remove PMI in Texas?
Often yes, when you are asking to remove PMI because the home gained value. The lender usually requires a current valuation based on an interior and exterior inspection. Some servicers order their own, so confirm whether they will accept an appraisal you commission.
How long does it take to remove PMI?
The appraisal itself can be completed quickly, and ours are delivered in under 4 days. After that the servicer reviews your request, which varies by lender. Federal servicing rules also require timely notice once the decision is made.
What if I have an FHA loan?
FHA mortgage insurance follows different rules from private mortgage insurance. On many newer FHA loans it cannot be removed unless you refinance, so talk to your servicer or lender about your specific loan before spending money on an appraisal.
Get an appraisal for PMI removal
If your servicer accepts an outside appraisal and you think your home is worth enough to drop PMI, send us the address and we will reply with a fixed quote. Request a quote or call 713-955-8972. You can also read our guide to retrospective appraisals or learn how appraisals support a property tax protest in Harris County.