We are getting very close to getting the PMI removed from our mortgage, which would give us an extra $67.20 a month to throw at the mortgage principle. I am trying to decide the best way to remove the PMI, here are the options:

1) LTV 80% - Estimated date we will reach is 9/1/10. We will have to send a request letter to our mortgage lender, and then pay for a new appraisal showing the value of the home has not gone down. Last time we had our home appraised for our refinance we had to pay $400 for the appraisal, so I would estimate the same cost for that.

2) LTV 78% - Estimated date we will reach is 01/1/11. If we wait till this date the PMI is supposed to automatically come off and so then we will not need to pay for the appraisal. But we would have to pay the $67.20 for 4 extra months ($268.80), and would lose a little ground on the mortage going down since we would not have the $67.20 to put towards principle for that 4 months.

I know it probably seems no brainer......#2 would save us about $130 since we wouldn't have to pay for the appraisal.....I think it is just a mental thing that I want that PMI gone asap! We will probabaly go with #2, but just seeing if there are any other thoughts out there. Also for anyone that is past the PMI, did it really come off automatically or did you have to call and make sure they got it done. Just thinking of past history, nothing seems to be as automatic as it is supposed to be..

Once the PMI is gone our "normal" extra payment will be over $500! It is so fun to watch it go down!