How to Get Rid of PMI
If you put less than 20% down when you bought your home, you're likely paying private mortgage insurance every month. PMI typically costs between $100 and $300 per month — money that goes straight to your lender's insurance company, not your equity.
The good news: once your home's value has increased enough that you have 20% equity, most lenders will cancel PMI with a current appraisal. With Twin Cities home values having risen significantly in recent years, many homeowners qualify sooner than they expect.
A PMI removal appraisal helps you:
Meet your lender's requirements — A certified appraisal is what most lenders need to process the cancellation.
Eliminate monthly PMI payments — Stop paying insurance that no longer reflects your equity position.
Save hundreds or thousands every year — That money stays in your pocket instead of going to your lender.
An Important Note About Loan Type
If your mortgage is federally backed through Fannie Mae or Freddie Mac, your lender may be required to order the appraisal themselves through an approved management company. In that case, you typically cannot choose your own appraiser. Call your lender first and ask about their PMI cancellation process before ordering.
If your loan is through a state-chartered lender or is a portfolio loan — common with credit unions and community banks — you generally have more flexibility in choosing your appraiser. That's where we come in.
What the Process Looks Like
Step 1 — Call your lender. Ask what their PMI cancellation process requires and whether you can use an independent appraiser. Get the specifics in writing if possible.
Step 2 — Schedule your appraisal. We visit your home for a 30 to 60 minute inspection. We measure the property, document its condition, and research recent comparable sales in your neighborhood.
Step 3 — Receive your report. You get a certified appraisal report typically within a few business days. Submit it to your lender with their cancellation request form.
Ben Goheen, Minnesota Certified Residential Appraiser (License #20303548), personally handles every appraisal. We serve homeowners across the Twin Cities metro — Minneapolis, St. Paul, and all surrounding suburbs.
Frequently Asked Questions
How do I know if I have 20% equity? A rough estimate: take your current loan balance and divide it by your home's estimated value. If the result is 0.80 or less, you likely have enough equity. But lenders require a certified appraisal to confirm — not an online estimate.
What if the appraisal comes in lower than I hoped? It happens. If the value doesn't support 20% equity yet, the appraisal still gives you a clear picture of where you stand and how much appreciation you need before you qualify. There's no penalty for trying.
How much does a PMI removal appraisal cost? $495 for a standard single-family home, townhome, or condo. If your monthly PMI is $150, the appraisal pays for itself in about three months. Call 651-505-4400 to get started.
