Greater Boston's housing market has been one of the most consistently appreciating real estate environments in the United States over the past decade. Median home prices rose dramatically through the 2020–2022 period and have held at historically elevated levels since. For homeowners who purchased between 2018 and 2022 with less than 20 percent down, this appreciation story is not just an asset balance sheet statistic it may be the event that already qualifies them to eliminate the PMI they are still paying every month.
The Appreciation Math That Changes Everything
Consider a homeowner who purchased a home in Newton in 2020 for $750,000, putting down 10 percent and taking out a $675,000 mortgage. At the time of purchase, with a loan balance of $675,000 against a $750,000 value, their LTV was 90 percent, well above the 80 percent threshold for PMI cancellation.
By 2025, comparable properties in Newton were selling in the $950,000 to $1,050,000 range. If that home is now worth $975,000 and the mortgage has been paid down to approximately $620,000 through regular payments, the LTV is approximately 64 percent. This homeowner has been eligible to cancel PMI for years. Their lender has not called them. No letter has arrived. The PMI charges simply continue, month after month, because the homeowner has not requested cancellation.
In Greater Boston's market, I see this situation constantly. A homeowner bought in 2019 or 2020, the neighborhood has appreciated 25 to 40 percent, and they are still paying $350, $450, $500 per month in PMI that their equity has long since made unnecessary. The market did the work. The appraisal documents it. And stopping those payments is a phone call and an appraisal away.
Why Lenders Don't Proactively Cancel and Why That Benefits Them
The PMI company is a for-profit enterprise. The lender benefits from the coverage. There is no financial incentive for either party to proactively initiate PMI cancellation on behalf of a borrower who has appreciated past the threshold. The HPA requires automatic cancellation when the loan balance, based on the original scheduled amortization, reaches 78 percent of the original value. It does not require the lender to factor in appreciation.
This is not a violation of the law. It is the law working exactly as written. The responsibility for requesting appreciation-based PMI cancellation falls entirely on the homeowner. The lender will process a valid request, but they will not initiate it.
The Specific Greater Boston Neighborhoods Where Appreciation Has Been Strongest
While appreciation has been broad across Greater Boston, certain communities have experienced the most dramatic increases in median home value since 2020. Communities including Newton, Brookline, Wellesley, Needham, Lexington, and Concord have seen significant appreciation driven by high demand, limited supply, and continued desirability for buyers willing to pay a premium for school districts and commute convenience.
For homeowners in these and similar communities who bought with less than 20 percent down any time between 2017 and 2022, an LTV analysis based on current market value is almost certainly worth the exercise and the professional appraisal that documents it is likely to pay for itself immediately.
The PMI Elimination Checklist
For Greater Boston homeowners considering whether to pursue PMI cancellation based on appreciation: confirm your current mortgage balance with your servicer, obtain an estimate of your home's current value from a preliminary conversation with a certified appraiser, check your servicer's specific seasoning requirements, and ensure your payment history meets the lender's requirements (typically no 30-day late payments in the past year and no 60-day late payments in the past 24 months).
If the preliminary analysis suggests your LTV is at or below 80 percent or clearly approaching it, commissioning a professional appraisal is the logical next step.
Ready to Stop Paying PMI?
If you believe your Greater Boston home has appreciated enough to eliminate PMI or if you have made improvements that increased your value, the Aladdin Appraisal team provide professional, USPAP-compliant appraisals that lenders accept for PMI removal requests. Stop paying insurance that protects your lender and start keeping that money for yourself.
Phone: (617) 517-3711
Email: info@aladdinappraisal.com
Web: www.aladdinappraisal.com
