A competitive market analysis (CMA) would be used instead of an appraisal report when trying to set a

Loan values are determined by appraisal reports, which provide a professional and objective assessment of a property’s value based on various factors, including condition, location, and market trends. Unlike a CMA, an appraisal is required by lenders to ensure the loan amount is justified relative to the property's actual worth.

Similar to new purchase loans, refinance loans also necessitate an appraisal report to ascertain the current market value of the property. This ensures that the loan amount does not exceed the property’s worth, thereby protecting the lender’s investment and allowing homeowners to access equity responsibly.

To remove PMI, lenders require an appraisal report to confirm that the homeowner's equity has reached the necessary threshold, usually 20% of the property's value. A CMA may provide a useful estimate, but it lacks the formal validation required by lenders to remove PMI obligations.