Grove Mortgage Home Loans in San Antonio, Texas
Celebrating 10 years of Texas Mortgages! - 210-656-1134

Private Mortgage Insurance in Texas

Learn & get information about PMI.

What is PMI?

PMI or Private Mortgage Insurance is extra insurance that lenders require from most home buyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.

Benefits of PMI

PMI plays an important role in the mortgage industry by protecting a lender against loss if a borrower defaults on a loan and by enabling borrowers with less cash to have greater access to home ownership. With this type of insurance, it is possible for you to buy a home with as little as a 3 percent to 5 percent down payment. This means that you can buy a home sooner without waiting years to accumulate a large down payment.

How can I avoid paying mortgage insurance premiums?

If you put down 20 percent or more when you buy a home, you can usually avoid paying mortgage insurance on a conventional loan. And once you've built up a certain amount of equity in your home, you can request to cancel it.

Why choose Grove Mortgage for your VA home loan?

Our headquarters is located in San Antonio, Texas and are a VA Approved lender and Licensed Mortgage Broker and have been specializing in VA Loans throughout Texas since 2002.

We can help you accomplish your home purchase with low rates, expert service, fast closing and low fees.

We proudly boasts an A+ rating from the Better Business Bureau.

Better Business Bureau

Start your Free Quote

Step 1

Are you wanting to Purchase or Refinance?

No Cost, No Credit Check, and No Obligation!

What is your Military Status?

← Back

What is your price range?

← Back

What is your current credit score?

← Back
← Back

Your information is secured by SHA2 & 2048-bit SSL Encryption.

← Back

Your information is secured by SHA2 & 2048-bit SSL Encryption.

← Back

Your information is secured by SHA2 & 2048-bit SSL Encryption.

By submitting this form, I acknowledge and agree to the privacy policy and terms of Use; I consent to the use of my information to receive phone calls, emails, and/or text messages from Grove Mortgage Home Loans. Consent is not a condition of service.

How to remove Private Mortgage Insurance

To remove private mortgage insurance (PMI) that you pay on your mortgage loan, you must be up to date with your monthly payments. These rules apply to mortgages closed on or after July 29, 1999. Federal law generally provides two ways for you to remove PMI from your home loan: canceling PMI or PMI termination.

Two different laws regarding the cancellation of PMI are:

  1. Texas Insurance Code, §§3502.201 - 3502.203 - Lender Powers and Duties (formerly Article 21.50, Sec. 1B), which is applicable to conventional mortgages effective prior to July 29, 1999; and
  2. The federal Homeowners Protection Act of 1998 - US Code, Title 12 - Chapter 49 ( §§4901-4910) which is applicable to some mortgages effective July 29, 1999 or later.

Request PMI cancellation

The Homeowners Protection Act gives you the right to request that your lender cancel PMI when you have reached the date when the principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home. This date should have been given to you in writing on a PMI disclosure form when you received your mortgage. If you can't find the disclosure form, contact your lender.

You can also make this request earlier if you have made additional payments to reduce the principal balance of your mortgage to 80 percent of the original value of your home.

Automatic PMI termination

Even if you don’t ask your lender to cancel PMI, your lender still must terminate PMI on the date when your principal balance is scheduled to reach 78 percent of the original value of your home. You also need to be current on your payments on the anticipated cancellation date. Otherwise, PMI will not be terminated until shortly after your payments are brought up to date.

It’s worth noting a termination request is different than a cancellation request. Your lender must terminate PMI even if the principal balance of your loan has not actually reached 78 percent of the original value of your home – for example, because the value of your home declined.

Every client's situation is different and handled with a unique, personalized approach. As a San Antonio, Texas based Mortgage Broker we focus on getting the right loan at the right rate for our client and it allows us to secure often hard-to-find financing.

Have a question about your particular mortgage goal, give us a call and speak with a mortgage specialist.

210-656-1134

Grove Mortgage Home Loans of San Antonio