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Texas Department of Insurance
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What is private mortgage insurance? Learn why you might need it.


Private mortgage insurance protects your lender – not you – if you stop making mortgage payments.

image of real estate image showing a family a home.
  1. Is it required?

    Most lenders require you to buy private mortgage insurance (PMI) if you make less than a 20% down payment on your house. The cost is usually folded into your mortgage payment. Your lender will get the insurance for you and tell you about the terms during closing.

  2. What does it cost?

    The cost of PMI coverage can range from 0.5% to 6% of the amount of your loan. The cost depends on your down payment, the type and term of your loan, and your credit score.

  3. How long do I have to keep it?

    You can usually cancel the policy when the balance of your loan is 80% or less than the current market value of your home. Your lender should tell you when you can cancel the insurance.

  4. Who do I call with questions?

    The notice from your lender will have a toll-free number to call with questions. If you have a complaint about your lender, contact the Texas Department of Banking.

    The Department of Banking regulates lenders. TDI regulates private mortgage insurance companies. (To regulate means to license and to ensure laws are followed.)

    If you’re not sure who to contact or have general insurance questions, call our Help Line at 800-252-3439.



Questions? Call us at 800-252-3439.

Last updated: 2/15/2023