dhewie said,

hopefully we can get a new appraisal in a year or so, and drop the PMI.

The problem with an appraisal is that you usually have to pay several hundred dollars for it. Check with the mortgage company again. Some of them accept a real estate agent's opinion of value, which you can usually get for free. Then if your balance is less than 80% of their opinion, the mortgage company should drop your PMI for a nominal fee.

Douglas (Is that better?)

Much better :)