Private mortgage insurance is the line item Texas buyers ask me about the most, and also the one most likely to be misunderstood — most people know it exists, but almost nobody knows the actual dollar range until I run their numbers. I'm Bond Peter Njoku (NMLS #2670329), and here's the real math behind PMI cost on a conventional loan, plus exactly when it goes away.
What determines how much PMI costs on a conventional loan in Texas?
Two things drive the number: your down payment (which sets your loan-to-value) and your credit score (which sets your risk tier). The lower your down payment and the lower your score, the higher the PMI rate the mortgage insurer charges. This is different from FHA, where mortgage insurance is a flat percentage no matter your score — conventional PMI is priced individually to your file.
PMI cost by credit score and down payment
| Credit score band | 5% down (95% LTV) | 10% down (90% LTV) | 20%+ down |
|---|---|---|---|
| 620–679 | ~$210–$300/mo | ~$140–$210/mo | No PMI |
| 680–719 | ~$150–$210/mo | ~$100–$150/mo | No PMI |
| 720–739 | ~$110–$150/mo | ~$75–$110/mo | No PMI |
| 740+ | ~$70–$110/mo | ~$50–$75/mo | No PMI |
Illustrative figures on a $350,000 Texas home — your actual quote depends on the specific investor grid at the time you lock. See the full conventional loan requirements in Texas for the underlying qualification tiers, or estimate your own payment with my Texas mortgage calculator.
When does PMI go away on a conventional loan?
This is the single biggest difference between conventional PMI and FHA's MIP, and it's why I steer many well-qualified buyers toward conventional even when both programs would approve them. You can request PMI removal yourself once your loan balance reaches 80% of your home's original value. Your servicer is required to cancel it automatically at 78%, based on your original amortization schedule, as long as you're current on payments. On FHA, mortgage insurance is frequently permanent for the life of the loan unless you refinance out of it.
Can I get rid of PMI faster than my original schedule?
Yes, two ways. Extra principal payments bring your balance down faster than your amortization schedule assumes, moving both the 80% request date and the 78% automatic cancellation date closer. Separately, if your home's value has risen since purchase — common across much of DFW over the past few years — you may be able to request an appraisal-based removal before your amortization schedule would otherwise get you there, without waiting on payments alone.
Named example: a Rockwall buyer's PMI timeline
I worked with a Rockwall buyer who closed with 5% down and a 695 credit score on a $340,000 home, landing at roughly $175/month in PMI. She started adding $150 extra to principal each month starting in year two. That single change moved her automatic cancellation date up by almost 3 years compared to her original schedule — saving her more than $6,000 in PMI she would have otherwise paid.
Frequently Asked Questions
How much is PMI on a $300,000 conventional loan in Texas?
I'm Bond Peter Njoku (NMLS #2670329). On a $300,000 Texas home with 5% down, PMI typically runs somewhere between $130 and $250 a month depending on your credit score — the higher your score, the lower that number. Call or text me at 469-545-7180 and I'll price your exact scenario.
Can I avoid PMI on a conventional loan without putting 20% down?
I'm Bond Peter Njoku (NMLS #2670329). Lender-paid PMI (built into a slightly higher rate instead of a separate monthly charge) and piggyback second-lien structures can both avoid a standalone PMI line item, though you're still paying for the risk somewhere in the math. Call or text me at 469-545-7180 and I'll show you both structures side by side against putting less down and just paying PMI directly.
When exactly does PMI automatically cancel on a conventional loan in Texas?
I'm Bond Peter Njoku (NMLS #2670329). Your servicer is required to automatically cancel PMI once your loan balance reaches 78% of the home's original value, based on your original amortization schedule, as long as you're current on payments. You can also request removal yourself once you hit 80%. Call or text me at 469-545-7180 and I'll help you figure out your exact date.
Does paying extra principal help me drop PMI faster in Texas?
I'm Bond Peter Njoku (NMLS #2670329). Yes — any extra principal payment brings your loan-to-value down faster, which moves your automatic 78% cancellation date closer and lets you request removal at 80% sooner too. Call or text me at 469-545-7180 and I'll calculate how much extra principal would shave off your PMI timeline.
Get your exact PMI number, not a range.
I'm Bond Peter Njoku (NMLS #2670329). I'll price your specific credit score and down payment against current investor grids and map out your PMI removal timeline. Call or text me at 469-545-7180, message me on WhatsApp, or start your pre-approval online.