If you bought your home with less than 20% down, there’s a good chance you’re paying Private Mortgage Insurance (PMI) every month. PMI is designed to protect the lender, not you, and it can easily add hundreds of dollars to your mortgage payment each month. The good news? You don’t have to keep paying it forever.
One of the fastest, most affordable ways to remove PMI is by getting a Broker Price Opinion (BPO).
What is PMI and Why Remove It?
PMI kicks in when the lender wants extra security on loans with higher risk—typically when the borrower doesn’t have 20% equity. Once your home has appreciated, or once you’ve paid down enough of your mortgage, you may have the equity you need to remove PMI. But your lender won’t just take your word for it—they want proof.
The Role of a BPO
This is where a Broker Price Opinion comes in. A BPO is an estimate of your home’s current market value performed by a licensed real estate professional. It’s similar to an appraisal but much less expensive and often faster.
- Appraisals can cost $500–$700 or more and take weeks.
- BPOs typically cost less than half of that and are completed in days.
Because lenders often accept BPOs as evidence of current market value, they’re a powerful tool for homeowners looking to drop PMI.
How the Process Works
- Request PMI removal from your lender or loan servicer.
- They’ll require proof of value—either an appraisal or a BPO.
- A real estate professional (like me) completes the BPO report, comparing your property against recent neighborhood sales and listings.
- If the BPO shows you have at least 20% equity, your lender can approve the PMI removal.
Why BPOs Are Effective
- Cost Savings: Less expensive than an appraisal.
- Speed: Faster turnaround time.
- Accuracy: Uses real local sales data and market expertise.
- Lender-Approved: Many institutions rely on BPOs regularly for loan servicing, short sales, and equity verification.
Real-World Example
Let’s say you bought your home three years ago for $250,000 with 10% down. You’ve been paying PMI every month since. Now, thanks to market appreciation, your home is worth closer to $300,000. That added equity may be enough to eliminate PMI. By ordering a BPO to verify this value, you can present the findings to your lender and potentially cut hundreds from your monthly payment.
Bottom Line
Paying PMI when you no longer have to is like leaving money on the table every month. A Broker Price Opinion can be your shortcut to proving your equity and removing PMI without the extra cost and hassle of a full appraisal.
If you think your home has gained value, now is the time to check. A simple BPO could put real money back in your pocket.
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