To cancel PMI on current value, your servicer needs a valuation. But "valuation" doesn't always mean a full appraisal. Many servicers accept a Broker Price Opinion, or BPO — and knowing which your servicer requires can save you both time and money.
What a Full Appraisal Is
A full appraisal is a formal valuation by a licensed appraiser who inspects the property in person, measures it, evaluates its condition, and analyzes comparable sales. It's the most thorough and most widely accepted option — and the most expensive, generally $350 to $600.
What a BPO Is
A Broker Price Opinion is an estimate of value prepared by a licensed real estate agent or broker rather than an appraiser. It relies heavily on comparable sales and market knowledge, and may involve only an exterior look at the property or no visit at all.
Because it's less intensive, a BPO is faster and much cheaper — often around $100 to $150.
Side by Side
- Cost — appraisal: roughly $350–$600; BPO: roughly $100–$150.
- Performed by — appraisal: licensed appraiser; BPO: real estate agent or broker.
- Inspection — appraisal: full interior and exterior; BPO: often exterior-only or none.
- Speed — appraisal: slower to schedule and complete; BPO: typically faster.
- Acceptance — appraisal: accepted nearly everywhere; BPO: accepted by some servicers, not all.
You usually don't get to choose. The servicer decides which valuation type it will accept and typically orders it themselves. Your job is to find out their policy before assuming you need the costlier option.
How to Find Out Which Your Servicer Requires
When you submit your cancellation request, ask the servicer directly: does PMI removal require a full appraisal, or do you accept a BPO? Policies vary not just by servicer but sometimes by loan type, investor, and property type. Get the answer — and the fee — in writing before anything is ordered.
Which Is Better for You?
If your servicer accepts a BPO, it's usually the better deal for a PMI removal request: cheaper, faster, same outcome. A full appraisal's extra rigor matters more for a purchase or refinance than for confirming you've crossed the 80% line. Either way, the goal is the same — a valuation that brings your LTV to 80% or below.
The Bottom Line
A BPO can do the same job as a full appraisal for PMI removal at a fraction of the cost — but only if your servicer accepts one. Don't pay for a full appraisal until you've confirmed it's actually required.
PMI Ninja knows which servicers accept BPOs and which insist on full appraisals, and steers your request toward the lowest-cost valuation your servicer will accept.
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