PMI Dropped?

How can you get rid of PMI?

QUESTION: A listener is paying PMI on a mortgage of $155,000.  If his home appraises for $195,000 can he get the PMI dropped?

ANSWER: You have to have an 80% loan-to-value ratio to avoid PMI.  In your situation, the ratio is 79%, so you could drop the PMI.  However, the appraisal will have to be from a company your bank approves.  It is worth it for you to get the appraisal because of the money you will save after the PMI is dropped.