Green Hill Appraisals Can Help You Remove PMI
When buyers put down less than 20% on a home, lenders mitigate their risk with Private Mortgage Insurance (PMI). PMI protects the lender— not the borrower—if default occurs and the property’s value doesn’t cover the outstanding loan. For many homeowners, PMI adds $40–$50 per $100,000 borrowed to their monthly payment and is often not tax-deductible, making it an expensive long-term cost.
Why Removing PMI Matters
For most borrowers, the savings from eliminating PMI quickly outweigh the cost of an appraisal. Green Hill Appraisals brings extensive experience with market trends throughout Spokane County, and surrounding Washington areas—providing the credible valuations lenders rely on when removing PMI.
When Can PMI Be Dropped?
Under the Homeowners Protection Act of 1998, lenders must automatically cancel PMI once the loan reaches 78% of the original principal. Homeowners may request removal earlier—at 80% loan-to-value—but only if they can demonstrate sufficient equity.
Because it can take years of payments to reach that threshold, accurate, current market value is key. Appreciation over time may push a property over the 20% equity mark well before the loan balance alone would. Even when national trends fluctuate, local markets behave independently—making a Washington-specific valuation essential.
How Green Hill Appraisal Helps
Determining whether a homeowner has surpassed the 20% equity threshold is not always straightforward. A Washington-licensed, certified appraiser can provide the market analysis needed to prove current value. Green Hill Appraisal specializes in identifying local value trends and providing lenders with credible, defensible reports that support PMI removal requests.
Once an updated appraisal confirms adequate equity, most lenders will remove PMI with minimal delay—saving your client money every month.
Ready to Reduce Your Client’s Costs?
If your client’s mortgage payment still includes PMI, a current appraisal may save them thousands.