HomeQ&A › PMI removal appraisal

The PMI removal appraisal: cost, process, preparation

One number from one visit decides your case. Small preparation moves that number more than people expect.
Short answer: the servicer orders the valuation — a BPO (~$150–200) or full appraisal (~$300–600) — at your expense; some try a free AVM first. You cannot submit your own appraisal. Preparation is legitimate and effective: document improvements, supply good comparables, and present the home well.

BPO vs. appraisal vs. AVM — which will you get?

ValuationCost to youWhat it is
AVMOften freeAutomated model; Fannie-owned loans may validate value this way with no visit
BPO~$150–200A licensed agent's price opinion — exterior or interior visit plus comps
Appraisal~$300–600Full licensed appraisal; most rigorous and most influenceable by documentation

How do you prepare the home?

Treat it like a mini-sale. Write a one-page improvements sheet — kitchen, bath, roof, HVAC, flooring, with dates and rough costs — and hand it to the visitor; improvements they don't know about are value they can't count. Pull three to five recent nearby sales of similar homes that support your number (the checker's value estimate shows the comp range). Then the basics that shift subjective condition grades: curb appeal, lights on, clutter down, repairs visibly done.

What if the number comes in low?

You're entitled to the figure in the written denial. Review the comps used — BPOs especially can lean on stale or mismatched sales. Dispute with better comparables, or ask whether the servicer will order a full appraisal instead (worth it when a cheap exterior BPO missed interior improvements). Or wait: at current appreciation even a few months can close a small gap, and monitoring catches the moment it does.

Check your value cushion before paying for anything — free →

Sources: Fannie Mae B-8.1-04 · CFPB. Reviewed July 2026.