Private mortgage insurance (PMI) is the monthly premium added to many conventional loans when the borrower buys with a down payment of less than 20 percent. Once the loan balance falls to 80 percent or less of the home's value - through payments, appreciation, or both - the borrower can generally request that PMI be removed. In most cases, the lender requires a current appraisal to document that the value supports removal before it will cancel the premium.
When a PMI removal appraisal is needed
Homeowners request PMI removal when they believe their home's current value has risen enough, or their balance has fallen enough, that the loan-to-value ratio is at or below 80 percent. Home improvements can also increase value toward that threshold. Rather than guessing from online estimates, an appraisal provides the documented value the lender needs to make its decision. Before ordering, confirm with your loan servicer that an appraisal is required for your loan and how the appraisal must be ordered - some servicers require the appraisal to be ordered through their own process, and an appraisal they did not authorize may not be accepted.
How the process works with Sanicola Appraisals
Where the servicer allows the homeowner to engage the appraiser, we inspect the property, document its condition and any improvements, research recent comparable sales in the neighborhood, and deliver a report stating a supported opinion of current market value. That report is what you submit to your servicer with your written PMI removal request. The servicer makes the final decision under the terms of your loan.
Sanicola Appraisals, LLC provides PMI removal appraisals in Washington County and Frederick County, Maryland; Berkeley County and Jefferson County, West Virginia.
Request a PMI removal appraisal
Call Sanicola Appraisals, LLC at (240) 217-7778. If you are unsure whether your value is likely to support removal, we are glad to talk through your situation first.