What is PMI and why does it matter?
Private mortgage insurance (PMI) is a monthly fee added to your mortgage payment when you put less than 20% down on a home purchase. It protects the lender — not you — and can add hundreds of dollars to your monthly payment. Once you've built sufficient equity, you can request its removal.
How a PMI removal appraisal works
Most lenders require that your loan-to-value (LTV) ratio be at or below 80% — meaning your home's current value must be at least 25% more than your remaining loan balance. If home values in your area have risen since you purchased, a current certified appraisal can demonstrate this to your lender and support your PMI cancellation request.
Hudson Valuation Group provides USPAP-compliant PMI removal appraisals accepted by lenders throughout Contra Costa and Alameda County.
Steps to remove PMI using an appraisal
- Contact your lender and ask about their PMI cancellation process and requirements
- Confirm they accept borrower-ordered appraisals and what format is required
- Order a certified appraisal from Hudson Valuation Group
- Submit the appraisal report to your lender along with any required forms
- If the value supports an LTV at or below 80%, your lender cancels PMI
What affects your home's current value
- Market appreciation since purchase (Contra Costa County has seen significant appreciation in many areas)
- Improvements and renovations you've completed
- Condition improvements relative to comparable properties
- Changes in the neighborhood or surrounding market
Ready to remove your PMI?
Contact us to order a certified appraisal for your lender's review.
Request an Appraisal