Remove Private Mortgage Insurance (PMI) with a Professional Appraisal

On-Time Appraisers, Inc. helps homeowners determine whether they qualify for Private Mortgage Insurance (PMI) removal through a USPAP-compliant residential appraisal.

**What Is PMI and Why Are You Paying It?

When obtaining a mortgage, lenders typically require PMI if the down payment is less than 20% of the home’s value. PMI protects the lender, not the borrower, in case of default—yet the cost is passed on to you.

PMI commonly adds $40–$50 per month for every $100,000 borrowed, increasing your monthly payment with no direct financial benefit to you. In many cases, PMI is not tax deductible, making it an unnecessary long-term expense once sufficient equity has been established.

**How PMI Can Be Removed

Under the Homeowners Protection Act of 1998, lenders are required to:

• Automatically cancel PMI when the loan balance reaches 78% of the original value

• Remove PMI upon borrower request once the loan reaches 80% loan-to-value (LTV)

However, waiting for scheduled loan amortization can take many years. The good news?
Appreciation counts.

**Home Value Appreciation Can Accelerate PMI Removal

Real estate markets are local. Even during periods of national market fluctuation, many neighborhoods experience value growth that pushes equity past the 20% threshold sooner than expected.

If your home has appreciated—or you’ve made improvements—you may already qualify for PMI removal right now, even if your loan balance alone hasn’t reached the required ratio.

**Why a Professional Appraisal Matters

Determining when your equity exceeds 20% isn’t guesswork. A licensed, certified residential appraiser provides an independent, defensible opinion of market value that lenders rely on.

At On-Time Appraisers, Inc., the appraiser specializes in:

• Market-supported residential valuations

• PMI removal appraisals for single-family homes and condominiums

• In-depth local market analysis throughout Broward and Miami-Dade Counties

• Reports prepared in full compliance with USPAP and lender guidelines

When supported by a credible appraisal, lenders will typically remove PMI without resistance, allowing you to keep the monthly savings going forward.

**Are You Still Paying PMI?

If PMI appears on your mortgage statement, it’s worth reviewing your options. A professional appraisal may confirm that you’ve already met the equity requirement.

Contact On-Time Appraisers, Inc. to determine whether a PMI removal appraisal is appropriate for your property.

**How Can Homeowners Avoid Paying PMI?

The Homeowners Protection Act of 1998 requires lenders, on most conventional loans, to automatically cancel Private Mortgage Insurance (PMI) once the loan balance reaches 78% of the original loan amount, provided the borrower is current on the mortgage.

However, informed homeowners do not need to wait for automatic cancellation. The law also provides that PMI must be removed at the homeowner’s request once the loan balance reaches 80% loan-to-value (LTV).

Relying solely on scheduled loan amortization to reach the 20% equity threshold can take many years. For that reason, it is essential to understand how much your home has appreciated in value over time. Market appreciation directly increases equity, and every dollar of verified appreciation contributes toward meeting the PMI removal requirement.

Even during periods when national housing trends suggest declining values, real estate remains a local market. Individual neighborhoods often perform differently from national averages, and many properties establish sufficient equity well before market conditions stabilize elsewhere.

One of the most common challenges homeowners face is determining when their equity has surpassed the 20% threshold. This is where a licensed, certified residential real estate appraiser plays a critical role. An appraiser’s responsibility is to analyze current market conditions, recent comparable sales, and neighborhood trends to develop a credible, well-supported opinion of value.

At On-Time Appraisers, Inc., the appraiser specializes in analyzing residential value trends throughout Miami-Dade and Broward Counties and surrounding areas. When a professionally prepared appraisal demonstrates sufficient equity, lenders will typically remove PMI with minimal resistance. Once PMI is eliminated, the homeowner benefits from the resulting monthly savings moving forward.

Want to learn more about PMI and the Homeowners Protection Act?

👉 Cancellation of Private Mortgage Insurance: Federal Law May Save You Hundreds of Dollars Each Year