Fannie Mae and Freddie Mac let servicers cancel PMI based on the home’s current value: 75% LTV for loans 2–5 years old, 80% for loans older than 5 years. Appreciation gets most owners there, but improvements stack on top — if a $30,000 kitchen adds $40,000 of appraised value, that can be the difference that clears the line. No refinance, no change to your rate.
| Improvement | Typical appraisal impact |
|---|---|
| Added square footage / finished basement | High |
| Kitchen or bathroom remodel | High |
| New roof / systems (HVAC, electrical) | Moderate |
| Cosmetic updates (paint, fixtures) | Low — helps presentation |
Appraisers credit permitted, completed work that changes the home’s usable space or condition relative to comparable sales — kitchens, baths, square footage, and finished basements lead. Cosmetic refreshes help the home show well but rarely move the number on their own. Keep permits and before/after documentation; if only a broker price opinion was ordered, request a full appraisal so an appraiser inspects the interior where your work is.
Same process as any current-value request: confirm you are past the threshold, submit a written cancellation request citing the current-value path, complete the servicer-ordered valuation, and get the determination in writing within 30 days. If the number comes in low despite your work, you can dispute the valuation.
Yes. The current-value cancellation path uses your appraised value and requires only a written request plus a valuation — no refinance. See removing PMI without refinancing.
You do not submit receipts for approval, but documenting permitted, completed work helps the appraisal reflect it. Have your comparables and improvement records ready for the valuation.
They stack — appreciation and improvements both raise appraised value and both count toward the current-value threshold. See canceling PMI after your value rose.