How to Remove PMI from Your Conventional Loan in Nevada

PMI typically costs between 0.5% to 1.5% of your original loan amount annually, divided into monthly payments. For example, on a $400,000 loan, PMI could cost $167-$500 per month.

Once removed, that amount goes directly back into your pocket every month. Over the life of your loan, removing PMI can save Nevada homeowners $20,000-$60,000 or more.

Yes! If your Nevada home has appreciated in value since purchase, you may already have 20% equity even if you haven't paid down that much of your loan principal.

You'll need to get a current appraisal to prove the increased home value. Many Nevada homeowners have successfully removed PMI early due to strong market appreciation, especially in Las Vegas, Henderson, and Reno metro areas.

If your lender denies your request, they must provide the specific reason in writing. Common reasons include:

• Insufficient equity (not at 20% yet)
• Late payment history
• Liens against the property
• Appraisal didn't support current value needed

Consider refinancing if you're close to 20% equity or if denial was due to payment issues that have since been resolved. A refinance into a new loan without PMI may be your best option.

Refinancing to remove PMI makes sense if:

• Your home has appreciated enough to reach 20% equity
• Current interest rates are competitive with your existing rate
• You plan to stay in the home long enough to recoup closing costs
• Your credit score has improved since the original loan

Many Nevada homeowners can refinance, eliminate PMI, and still get a similar or better interest rate, especially if they've improved their credit score or if rates have dropped.

The timeline typically breaks down as follows:

• Appraisal: 7-10 business days
• Request submission: 1-2 days
• Lender review: 10-30 days (30 days maximum by law)
• PMI removal effective date: Usually your next payment cycle

Most Nevada homeowners complete the entire PMI removal process within 30-45 days from initial contact to final confirmation.

FHA loans have Mortgage Insurance Premium (MIP), not PMI, and the rules are different. For FHA loans originated after June 2013 with less than 10% down payment, MIP lasts for the life of the loan and cannot be removed.

Your best option: Refinance from FHA to a conventional loan once you reach 20% equity. This eliminates mortgage insurance entirely and often results in a lower monthly payment. Learn more about FHA vs Conventional loans.