PMI removal appraisals

You can ask your servicer to cancel private mortgage insurance once your balance is scheduled to reach 80 percent of your home's original value, or sooner if extra payments get you there. The servicer can ask for evidence, such as an appraisal, that the value has not fallen below the original value (CFPB).

Call your servicer before you order

Ask your servicer how it wants the current value shown and whether it has a list of approved appraisers. Then send us the address and the servicer's requirements, and our team will quote the report to fit them.

The rules in short

The request has to be in writing, you need a good payment history, and there can be no second mortgage or other junior lien. If you do nothing, PMI generally ends on its own when the balance is scheduled to reach 78 percent of original value. These rules cover single family principal residences with loans closed on or after July 29, 1999. FHA and VA loans follow different rules (CFPB).

Common questions

What counts as original value?

For a purchase it is generally the lower of the contract price or the appraised value at the time you bought. After a refinance it is the appraised value at the refinance (CFPB).

My home has gone up in value. Can I drop PMI early?

Possibly. Loans owned by Fannie Mae or Freddie Mac can allow earlier cancellation under their own guidelines, and some servicers use a current appraisal for this. Ask your servicer what it accepts before ordering.

Sources

CFPB, When can I remove PMI from my loan?