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If your home's value has increased since you purchased it, you may have accumulated enough equity to eliminate monthly mortgage insurance. A professional appraisal provides an independent opinion of market value that may help support the removal of PMI, potentially reducing your monthly housing expenses and saving hundreds or even thousands of dollars each year.
For many conventional loans, homeowners may request cancellation of PMI once the loan-to-value ratio reaches 80%, and PMI is generally required to terminate at 78% based on the original value and amortization schedule. An appraisal may be necessary when cancellation is sought due to market appreciation rather than principal reduction.
Mortgage insurance rules vary by loan type:
Conventional Loans: PMI may be removed when sufficient equity has been established, often with the support of a current appraisal. Borrowers may request cancellation at 80% loan-to-value, and automatic termination generally occurs at 78%.
FHA Loans: Mortgage Insurance Premium (MIP) follows different rules. For many FHA loans originated after June 2013 with less than 10% down, MIP remains for the life of the loan. Loans with an original down payment of 10% or more generally have MIP removed after 11 years.
USDA Loans: USDA loans include an annual guarantee fee that typically remains for the life of the loan and is not removed through an appraisal.
VA Loans: VA loans do not have monthly PMI. Instead, most borrowers pay a one-time funding fee at loan origination.
Benefits of a PMI Removal Appraisal
Determine your home's current market value
Establish whether sufficient equity may exist for PMI cancellation
Potentially reduce monthly mortgage payments
Save money over the remaining life of the loan
Obtain an independent, market-supported valuation
With over 23 years of appraisal experience throughout the Greater St. Louis region and surrounding Missouri counties, Superior Appraisals provides credible, well-supported valuations developed in accordance with recognized appraisal standards. Before ordering an appraisal, homeowners should contact their lender to confirm eligibility requirements and whether an independent appraisal will be accepted for PMI review.
If your home's value has increased since you purchased it, you may have accumulated enough equity to eliminate monthly mortgage insurance. A professional appraisal provides an independent opinion of market value that may help support the removal of PMI, potentially reducing your monthly housing expenses and saving hundreds or even thousands of dollars each year.
For many conventional loans, homeowners may request cancellation of PMI once the loan-to-value ratio reaches 80%, and PMI is generally required to terminate at 78% based on the original value and amortization schedule. An appraisal may be necessary when cancellation is sought due to market appreciation rather than principal reduction.
Mortgage insurance rules vary by loan type:
Conventional Loans: PMI may be removed when sufficient equity has been established, often with the support of a current appraisal. Borrowers may request cancellation at 80% loan-to-value, and automatic termination generally occurs at 78%.
FHA Loans: Mortgage Insurance Premium (MIP) follows different rules. For many FHA loans originated after June 2013 with less than 10% down, MIP remains for the life of the loan. Loans with an original down payment of 10% or more generally have MIP removed after 11 years.
USDA Loans: USDA loans include an annual guarantee fee that typically remains for the life of the loan and is not removed through an appraisal.
VA Loans: VA loans do not have monthly PMI. Instead, most borrowers pay a one-time funding fee at loan origination.
Benefits of a PMI Removal Appraisal
Determine your home's current market value
Establish whether sufficient equity may exist for PMI cancellation
Potentially reduce monthly mortgage payments
Save money over the remaining life of the loan
Obtain an independent, market-supported valuation
With over 23 years of appraisal experience throughout the Greater St. Louis region and surrounding Missouri counties, Superior Appraisals provides credible, well-supported valuations developed in accordance with recognized appraisal standards. Before ordering an appraisal, homeowners should contact their lender to confirm eligibility requirements and whether an independent appraisal will be accepted for PMI review.