A BPO is a "Brokers Price Opinion" on the current value of the home. The value is estimated by the broker based on the location, condition, features and size of home in relation to the recently sold values of homes in the area.
The lender will order an appraisal or a BPO which are different. Yes, a fee to the independent party that provides the services is to be expected.
Your lender will look for a certain equity value before considering dropping the PMI insurance. Each lender has different requirements based on your credit situation and the collateral value of the home.
Jeffrey Masich, Realtor, GRI, MBA
Arizona homes and land for purchase or sale