Can You Remove PMI Without an Appraisal in Utah? Here's What Homeowners Should Know

If you bought a home in Utah and didn’t put twenty percent down, there’s a good chance you’re still paying private mortgage insurance, or PMI. That monthly fee doesn’t protect you. It protects the lender in case you default. And it can be frustrating to keep paying it, especially when you know your home’s value has gone up.

We get a lot of questions from homeowners across the Salt Lake metro area about how to remove PMI. One of the most common questions is whether you need an appraisal. That’s a fair question, and the answer is important, especially if you’re trying to stop paying for something you no longer need.

Let’s walk through what PMI is, how it works in Utah, and why the answer to that appraisal question might surprise you.

What Is PMI and Why Are You Paying It?

Private mortgage insurance is usually required on conventional loans if your down payment was less than twenty percent. It’s not uncommon at all. In fact, for many Utah buyers over the past few years, it was one of the only ways to get into a home as prices rose quickly. PMI is there to protect the lender, not the borrower, in case of default.

You’re probably paying it each month along with your principal, interest, taxes, and insurance. And it adds up. Depending on your loan and credit profile, it could easily be a couple hundred dollars each month. Over the course of a year or two, that’s thousands of dollars that aren’t going toward your equity.

When Can You Get Rid of PMI?

There are a few different ways PMI goes away. Sometimes, it falls off automatically when your loan reaches seventy-eight percent of the original value of the home. That’s based on your original purchase price and payment schedule. You don’t have to do anything in that case.

But what if your home has gone up in value? What if you’ve made extra payments or done improvements? That’s where most homeowners want to take the reins and request PMI removal early. And that’s where the appraisal comes in.

If you want to remove PMI before it falls off on its own, your lender will usually require you to prove that you’ve reached at least twenty percent equity. And they don’t just take your word for it.

Do You Need an Appraisal?

In almost every case where PMI removal is requested, yes, you will need an appraisal. And not just any appraisal. Your lender has to order it. You can’t just hire an appraiser yourself and turn it in. It has to go through the lender’s internal process, often through their approved panel or an appraisal management company they’ve partnered with.

The lender orders it, but you still pay for it. That’s a frustrating detail for a lot of homeowners. You’re paying for a report that someone else chooses. And if that appraisal comes in low, you’re out the fee and still stuck with PMI.

That’s why many Utah homeowners call us first.

Why Homeowners in Utah Get a Value Check Before Requesting PMI Removal

We regularly get calls from people in Salt Lake County, Utah County, Davis County, and even more rural areas like Tooele or Wasatch. They’ve done the math. They know their loan balance is getting lower. They’ve heard home values have gone up. But they’re not sure if they’re in the clear. And they don’t want to pay a lender for an appraisal just to find out they’re not there yet.

That’s where a local appraiser can be helpful, even if we don’t provide the final report your lender uses. We know the neighborhoods. We know which areas are holding value and which have softened. And we can give you an idea of whether your current equity might be enough.

This kind of insight is especially helpful in Utah, where appreciation has been uneven. Homes in the Salt Lake metro area surged in value during the pandemic years, but some areas have stabilized or even declined slightly since then. Others have kept climbing. If you’re in Herriman, Kaysville, Spanish Fork, or Park City, your situation could look very different from someone just a few miles away.

What Happens If the Appraisal Comes in Low?

If your lender orders the appraisal and it doesn’t support enough equity to cancel PMI, the process stops there. You’ll still have to pay PMI until either your balance drops further or the market gives you more help through appreciation.

That’s why it’s smart to talk to a local appraiser first. We can help you assess whether the value is likely to meet your lender’s threshold. It won’t be the official number used by the bank, but it’s a great way to reduce the guesswork before spending money.

Does It Really Save That Much?

It absolutely can. Let’s say your PMI is one hundred and fifty dollars per month. That’s eighteen hundred dollars a year. If you’re still three years away from automatic removal, that’s over five thousand dollars out of your pocket. Even if the appraisal from the lender costs you five hundred, removing PMI early can be a big win.

More importantly, removing PMI gives you more flexibility with your finances. That monthly savings could go toward home improvements, savings, or just giving your budget a little breathing room.

How the Utah Market Makes This a Smart Time to Check

Home values in Utah have shown resilience. While some areas are adjusting, others are still appreciating. If you bought your home in the past five years, especially between twenty nineteen and twenty twenty-two, you may be closer to twenty percent equity than you think.

Even homeowners who didn’t plan to remove PMI early are now finding they qualify. And the only way to know for sure is to get an accurate idea of what your home is worth today.

That’s where we come in. At Minson Appraisal Group, we help homeowners across northern Utah understand where they stand. We can’t order the lender’s appraisal, but we can give you a local value check before you spend anything official. We can also talk through your specific area and property type to help you make an informed choice.

Start with the Right Information

PMI removal can feel like a confusing process, but it doesn't have to be. If you’ve owned your home for a few years, made steady payments, or seen local home prices rise, you may already be in a position to drop that monthly fee. The key is knowing where your property stands in today’s market.

Getting an appraisal from your lender is part of the process, but it doesn’t have to be your first move. A local value check or conversation with an appraiser can give you the clarity you need before you pay for an official report.

At Minson Appraisal Group, we’re here to help you understand your options. If you're paying PMI and wondering if you’re ready to remove it, reach out today. We’ll take a look at your area, your home, and your goals and help you take the next step with confidence.