You do need to prove the value somehow, but a full appraisal is often not the only path. A lender or servicer will not take your word on equity. Before you pay for a full appraisal, though, ask what they will accept: - A broker price opinion (BPO), where a real estate agent pulls comparable sales and produces a value opinion, usually much cheaper than an appraisal. - An automated valuation model, which some servicers allow. The cheaper route can get you the same result, so ask first. On a conventional loan, the Homeowners Protection Act also gives you two paths that need no new valuation at all. PMI terminates automatically when your balance is first scheduled to reach 78% of the original value, as long as you are current. And you can request cancellation when the balance reaches, or is first scheduled to reach, 80% of original value, subject to a good payment history and related conditions. Original value means the lesser of your purchase price or the appraised value when you got the loan. The appraisal or BPO route mainly matters when you want PMI gone early because the home appreciated. Guidelines vary by loan type and investor, so confirm the exact options with your servicer. If you are weighing a refinance to drop mortgage insurance, that trade-off is one we can run with you on a free Roadmap call.