If you’re paying private mortgage insurance on your San Antonio home, you can request to have it removed once your equity reaches around 20 percent of your home’s current value, and your lender will typically require a current appraisal to confirm that value before approving the removal. 3D Appraisals provides these appraisals throughout San Antonio and the surrounding counties.
Here’s a closer look at how PMI works, what triggers eligibility to remove it, and what the appraisal process looks like.
What Is PMI and Why It Exists
PMI protects the lender, not you, in case you default on a conventional loan with a smaller down payment. It’s typically required when your down payment is below 20 percent of the home’s purchase price. It can add a meaningful amount to your monthly payment, which is exactly why removing it once you’re eligible is worth pursuing.
How PMI Removal Works
Home values change, and many homeowners reach the required equity threshold faster than they expect, thanks to rising home values in their area or extra payments made toward their principal. Generally speaking, once your loan balance drops to around 80 percent of your home’s current value, you can request PMI removal. Under federal law, lenders are also generally required to automatically terminate PMI once your balance reaches 78 percent of the original value, though requesting removal earlier based on current market value can save you money sooner.
A new appraisal gives your lender the documentation they need to confirm your current equity position and approve the removal.
What Can Trigger Eligibility Sooner
- Rising home values in your neighborhood
- Extra payments made toward your loan principal
- Home improvements or renovations that increase market value
- Simply paying down your mortgage over time as scheduled
What Happens During the Appraisal
- You contact your lender first to confirm their specific process and requirements.
- We schedule your inspection and conduct a thorough walkthrough of the property.
- We research recent comparable sales in your area to establish current market value.
- We prepare a lender-formatted report and deliver it promptly so you can submit it without delay.
How Much You Could Save
PMI costs vary, but many homeowners pay a meaningful amount annually. Over the remaining life of a loan, that adds up considerably. If you suspect your home has appreciated or you’ve paid down a significant portion of your loan, a PMI removal appraisal is often a small upfront cost that pays for itself quickly.
If you’re not sure whether a PMI removal appraisal is the right fit for your situation, our overview of when you need an appraisal walks through the most common reasons homeowners reach out to us. And if you’re still in the process of buying a home, it’s worth understanding how buying and selling appraisals work too, since PMI often comes into play right from the start.
Frequently Asked Questions
Do I need to contact my lender first?
Yes, it’s a good idea to reach out to your lender first to confirm their specific process and requirements for requesting PMI removal before scheduling your appraisal.
What if the appraisal doesn’t show enough equity yet?
If you’re not quite at the threshold, you’ll simply continue making payments as normal and can request another appraisal once more equity has built up.
How long does the process take?
The inspection itself is usually under an hour, and we turn around the report quickly so you can submit it to your lender without delay.
Can home improvements help me reach the equity threshold faster?
Yes. Renovations and updates that genuinely increase your home’s market value can help you reach the required equity sooner than payments alone would.
Is there a difference between requesting removal and automatic termination?
Yes. Requesting removal lets you act as soon as you hit roughly 80 percent loan-to-value based on current market value. Automatic termination under federal law generally happens later, at 78 percent of the original value, regardless of appreciation.
Serving San Antonio and Surrounding Counties
3D Appraisals provides PMI removal appraisals throughout Bexar, Wilson, Comal, Guadalupe, and Gonzales counties.
Contact 3D Appraisals today to schedule your appraisal and start the process of removing PMI from your mortgage.