Call your servicer before ordering an appraisal
Start with your mortgage servicer, not an appraiser. Ask whether your loan has borrower-paid private mortgage insurance, whether you may request cancellation now and what written steps apply. The servicer or loan investor decides eligibility, the acceptable valuation product and who places the order.
Do not assume a private appraisal that you order will satisfy those rules. Some servicers must order the appraisal or broker price opinion through their own system. Get the instructions in writing before paying for any valuation. An appraisal can provide value evidence; it cannot cancel PMI or change your loan on its own.
Confirm what kind of mortgage insurance you have
PMI usually refers to private mortgage insurance on a conventional loan. FHA loans use mortgage insurance premiums, often called MIP, and follow different rules. VA-backed loans, other loan programs and lender-paid insurance can also have different requirements.
Check your closing papers, monthly statement and annual mortgage-insurance notice, then ask the servicer to identify the loan type and governing cancellation process. Red Oak Appraisals does not determine loan eligibility, interpret the mortgage contract or advise whether refinancing is a better financial choice.
Understand original value and current value
For many conventional mortgages on single-family principal residences closed on or after July 29, 1999, the Consumer Financial Protection Bureau explains that a homeowner may ask to cancel PMI when the principal balance is scheduled to reach 80 percent of the home's original value, subject to written-request, payment-history, current-payment and lien requirements. Original value generally means the lower of the purchase price or appraisal at purchase; after a refinance, it generally means the appraisal at that refinance.
Current value is a different measurement. Applicable loan and investor rules determine any seasoning period, loan-to-value threshold and valuation method. The CFPB also describes automatic termination at a scheduled 78 percent point for many covered loans when the borrower is current. Do not use those general figures as a personal eligibility decision; ask the servicer which method applies and how any required valuation must be ordered.
Know what a valuation can and cannot establish
A qualifying appraisal can provide an opinion of current market value as of a stated date. The report may describe the property, analyze comparable sales and explain how market evidence supports the conclusion. It does not verify your unpaid principal balance, payment history, junior liens or compliance with every investor condition.
Fannie Mae's servicing guidance illustrates why the order matters: for certain Fannie Mae loans, the servicer orders the required broker price opinion or appraisal and collects the applicable fee. The required product can differ by property type. That lender process is not the same as a homeowner ordering a private appraisal for personal planning.
Gather the servicer instructions and property records
Ask the servicer for the exact valuation name, required form or scope, ordering process, payment instructions and submission channel. If the request relies on improvements made since the loan began, ask what improvement details the servicer wants included.
- The servicer's written PMI or mortgage-insurance cancellation instructions
- Loan type, investor name if provided and the servicer's reference number
- Property address and unit count
- Dates and descriptions of completed additions, renovations or major repairs
- Permits, plans, invoices and photographs that document completed work
- Any required deadline, valuation date or approved ordering portal
Ask whether Red Oak can complete the required work
After the servicer confirms that you may use an appraisal and gives you the requirements, send those instructions with the property address to Red Oak Appraisals. The firm will review whether the requested product, ordering method, property and intended use fit a service it can accept.
Jacob Coffman is the Missouri Licensed Residential Appraiser responsible for Red Oak's appraisal work. A quote will address only the appraisal service. Your servicer remains responsible for accepting the valuation and deciding whether mortgage insurance can be canceled.
Helpful sources
- CFPB — When can I remove private mortgage insurance?
- CFPB — PMI cancellation and termination compliance bulletin
- Fannie Mae — Ordering property values for mortgage-insurance termination
- HUD — FHA single-family mortgage insurance premiums
Explore the related appraisal service · Read the appraisal FAQ · Request a private appraisal quote