Spring is the best time to request PMI cancellation based on home appreciation, May's comparable sale environment is the richest of the year, and spring values reflect the market at its most active. But June is not a bad time. It is, in fact, the second-best window, and for homeowners who did not act in May, the opportunity is still very much open.
Why the June Appraisal Still Works
PMI cancellation based on current appraised value requires the appraisal to establish that the outstanding loan balance is at or below 80 percent of the property's current fair market value. The fair market value in June reflects the current market, which in Greater Boston is typically still well above the levels of two, three, or four years ago, when many of the homeowners who are still paying PMI originally purchased.
The comparable sale evidence in June, while thinner than spring, is still current and representative. School-year buyers who close in June and July produce transactions that reflect current demand and pricing. A June appraisal supported by recent spring and early summer comparables is a credible, defensible document for PMI cancellation purposes.
Who Should Act This Month
Homeowners who purchased with less than 20 percent down between 2018 and 2022 in Greater Boston should run the simple math. Take your current outstanding loan balance from your most recent mortgage statement. Estimate your current home value using the range of recent comparable sales in your neighborhood, not a Zestimate, but actual closed transactions from MLSPIN or your real estate professional. If the ratio of balance to estimated value is at or near 80 percent, a professional appraisal is worth commissioning.
The potential savings are significant. PMI premiums range from 0.5 to 1.5 percent of the loan amount annually. On a $650,000 outstanding balance, the annual PMI cost is $3,250 to $9,750. The appraisal fee is typically recovered within 30 to 90 days of cancellation.
Ready to Get Started?
Whether you are a homeowner, estate attorney, realtor, CPA, or investor in Greater Boston, Adam Wiener and the Aladdin Appraisal team deliver USPAP-compliant appraisals you can rely on. Call today: (617) 517-3711 | info@aladdinappraisal.com | aladdinappraisal.com
