Can a home appraisal remove PMI?
Direct answer
Yes. A home appraisal can remove private mortgage insurance (PMI) early if your home's value has risen from market growth or renovations. Lenders generally require a loan-to-value of 75% if you have owned the home 2 to 5 years, or 80% if more than 5 years. Appraisals typically cost $300 to $600.
PMI usually falls off automatically once your loan amortizes to 78% LTV based on the original value — but you don't have to wait. If your Baltimore-area home has appreciated, a current appraisal can prove you've already crossed the equity threshold, letting you cancel PMI and lower your monthly payment sooner.
What LTV do you need?
Direct answer
Most conventional loans require a loan-to-value ratio of 75% if you have owned the home for 2 to 5 years, or 80% if you have owned it more than 5 years. The appraisal establishes current market value; your loan balance divided by that value determines whether you clear the threshold.
75%LTV required if you've owned the home 2–5 years
80%LTV required if you've owned the home 5+ years
Lender rules and requirements
Direct answer
Contact your servicer first. Most lenders require you to order the removal appraisal through them so they can use their approved appraisal management company. Ordering your own report may not be accepted for cancellation, though an independent certified appraisal is useful to verify your equity before you commit to the lender's fee.
- Contact your servicer first. Most lenders require the appraisal to be ordered through them, via their approved appraisal management company.
- Seasoning. Most conventional loans require you to have owned the home at least two years before an appraisal-based removal — unless you made major improvements.
- Payment history. You must be current, with no payments 30 days or more late in the past 12 months.
- No other liens. Your primary mortgage must be the only loan on the property — no active HELOC or second mortgage.
Steps to take
- Check your balanceFind your exact payoff amount on your most recent mortgage statement.
- Estimate local valueLook at recent nearby sales to see whether your equity likely clears the 75% or 80% threshold. An independent certified opinion removes the guesswork here.
- Call your lenderAsk their specific process, whether they require a full appraisal or accept a BPO, the cost, and their exact LTV target.
- Submit a formal requestSend a written cancellation request once the valuation and your payment history are confirmed.
Where an independent certified appraisal actually helps
Here's the honest version most PMI pages skip: your lender will usually order the official removal appraisal through their own company — you generally can't just hand them your own. So where does a certified local appraiser fit? Before you pay the lender's fee and start the process, an independent valuation tells you whether you've genuinely crossed the threshold — so you're not paying for an appraisal that comes back short. And if your servicer does permit an independent USPAP appraisal, you have one ready. Knowing Baltimore's block-by-block values is what makes that pre-check reliable.
How much does a PMI removal appraisal cost?
Direct answer
A PMI removal appraisal typically costs $300 to $600 nationally, varying by property size, complexity, and location. Removing PMI can save a homeowner substantially over the life of the loan, so the appraisal often pays for itself quickly. Contact us for a firm quote on your Baltimore-area property.
Appraisal or BPO — which does your lender want?
Direct answer
Some lenders accept a broker price opinion (BPO), but many require a full certified appraisal for PMI cancellation because it is inspection-based and USPAP-compliant. A certified appraisal is more defensible and less likely to be disputed. Ask your servicer which they require before ordering either one.
Want to know if you've hit the threshold?
An independent equity check before you commit to your lender's process.
Call 443-904-5229