PMI Removal Appraisal: How It Works

What is PMI and why remove it?

Private mortgage insurance (PMI) is added to your monthly mortgage payment when you originally put less than 20% down. It protects your lender — not you — and can add hundreds of dollars to your monthly expenses. Once you've built sufficient equity through appreciation or payments, 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 appraised value must be high enough relative to 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

1. Contact your lender and ask about their PMI cancellation process and appraisal requirements
2. Confirm they accept borrower-ordered appraisals and the format required
3. Order a certified appraisal from Hudson Valuation Group
4. Submit the appraisal report to your lender with any required forms
5. If the value supports an LTV at or below 80%, your lender cancels PMI

What affects your home's current value

• Market appreciation since your purchase date
• Improvements and renovations you've completed
• Condition relative to comparable properties
• Changes in the surrounding neighborhood or market

East Bay market appreciation

Contra Costa County communities — including Walnut Creek, Danville, San Ramon, Brentwood, and Discovery Bay — have seen meaningful appreciation in recent years. Many homeowners who purchased even a few years ago may now qualify for PMI removal without realizing it. A quick conversation can tell you whether it's worth pursuing.