Private mortgage insurance (PMI) is required by most lenders when a borrower puts down less than 20% on a home purchase. Once your equity grows to 20% through appreciation, improvements, or mortgage paydown, you can request PMI cancellation — but most lenders require a certified appraisal to document the current value before they will remove the charge from your monthly payment.
You need a PMI removal appraisal when you believe your home has appreciated enough — or when you have paid down enough principal — to cross the 20% equity threshold. Under the Homeowners Protection Act, you can request PMI cancellation once you reach 80% loan-to-value. If your lender agrees that appreciation may have raised your home's value, they will typically require a new certified appraisal to confirm.
AppraiserEngine appraisers provide fast, lender-accepted PMI removal appraisals that document current market value with supporting comparable sales data. Their reports are formatted to meet standard lender requirements for PMI cancellation requests. Many AppraiserEngine appraisers specialize in this service and can turn around a report quickly to minimize the number of additional PMI payments you make.
PMI typically costs 0.5%–1.5% of the original loan amount annually. On a $350,000 loan, that is $1,750–$5,250 per year. Removing PMI can save you hundreds of dollars every month — often far more than the cost of the appraisal itself.
Most lenders require an appraisal from an independent, state-certified appraiser. Some lenders use approved vendor lists. AppraiserEngine appraisers are state-certified and have experience working with major lenders and their PMI cancellation processes.
If the appraisal shows your equity is still below 20%, you have several options: continue paying down principal, make strategic home improvements, or wait for further market appreciation and reorder an appraisal later. The appraisal cost is usually $300–$600 — modest compared to continued PMI payments.
AppraiserEngine connects homeowners, attorneys, and lenders with certified, experienced appraisers in your area.
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