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The broker price opinion (BPO) for PMI removal

What to expect when your servicer uses a BPO instead of an appraisal—and how to challenge a low valuation.
Short answer: When you request PMI cancellation based on current value, your servicer orders the valuation—either a broker price opinion (BPO) or a full appraisal. You pay the cost, which runs about $150–200 for a BPO or $300–600 for a full appraisal. If the BPO comes in lower than you expect, you have the right to dispute it by submitting stronger comparable sales and documentation. A documented reconsideration commonly moves the value several percent.

Why does the servicer order a BPO instead of a full appraisal?

For current-value cancellation, the servicer orders the valuation. The borrower pays the fee, but the servicer selects the vendor. Some servicers prefer a broker price opinion (BPO) because it costs less and can be completed faster than a full appraisal. A BPO is performed by a licensed real-estate agent or broker and typically involves an exterior-only or desktop review of your home and recent comparable sales.

In contrast, a full appraisal includes an interior inspection, giving the appraiser a chance to observe upgrades, finishes, and the overall condition of your home. If you've made significant improvements or believe an interior view will help, you may want to ask your servicer whether a full appraisal can be ordered—though you'll pay more for it.

How much does a BPO cost, and who pays?

Valuation type Typical cost Interior inspection?
Broker price opinion (BPO) $150–200 No
Full appraisal $300–600 Yes

You, the borrower, pay the valuation fee upfront or as part of the PMI-cancellation request. The servicer retains control over vendor selection to maintain independence and comply with investor guidelines.

What happens if the BPO value is too low?

A BPO can be disputed with stronger comparable sales. Because BPO agents often conduct only a drive-by or desktop review, they may miss recent sales, use older data, or select comps that don't reflect your home's neighborhood or condition. A documented reconsideration commonly moves a value several percent.

Here's how to prepare a reconsideration request:

Many servicers will order a second review or a full appraisal if you present strong evidence. Even a small upward adjustment may push your loan-to-value ratio below 80 % and qualify you for PMI cancellation.

Check your PMI cancellation eligibility

When should you request a full appraisal instead of a BPO?

If you've completed major renovations—such as adding square footage, finishing a basement, or installing high-end finishes—a full appraisal is often worth the extra cost. A full appraisal includes an interior inspection, so the appraiser can see your upgrades firsthand and adjust the value accordingly. BPOs rely on exterior views and comparable sales data, which may not capture interior improvements.

Ask your servicer upfront what type of valuation they plan to order. If they default to a BPO and you believe an interior inspection will support a higher value, request a full appraisal in writing and confirm you're willing to pay the higher fee.

Who orders the BPO for PMI removal?

For current-value cancellation, the servicer orders the valuation. You pay the fee, but the servicer selects the vendor.

How much does a BPO cost versus a full appraisal?

A BPO typically runs about $150–200, while a full appraisal costs about $300–600.

Can I dispute a low BPO value?

Yes. You can dispute a BPO by providing stronger comparable sales. A documented reconsideration commonly moves a value several percent.

What's the difference between a BPO and a full appraisal?

A full appraisal includes an interior inspection and a more detailed analysis. A BPO is an exterior-only desktop or drive-by valuation performed by a licensed real-estate agent or broker.

Will my servicer automatically accept my reconsideration evidence?

Not always. Servicers review your evidence against their vendor's original analysis and investor guidelines. Strong, documented comps improve your chances, but the final decision rests with the servicer.

Can I order my own appraisal and submit it?

Most servicers will not accept a borrower-ordered appraisal for PMI cancellation because investor rules require the servicer to control vendor selection. However, having your own appraisal can strengthen a reconsideration request by highlighting discrepancies.

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Sources: Fannie Mae B-8.1-04, CFPB. Reviewed January 2025.