[jeffrey]

I wrote in the PS of today's challenge:

If you have not reached the 20% equity mark for your mortgage payment, but houses in your area have significantly increased in value since you purchased your home, you may want to consider getting an appraisal. The increased value of your house may put you over the 20% equity mark allowing you to cancel the PMI.

I received an email from one of the Money Saving Challenge subscribers for the challenge today on Mortgage PMI saying that:

"This is good advice, but you should advise your members that most mortgage companies want you to pay to have your home appraised first. I found this out the hard way several months ago when I requested my PMI removed. You need to make sure that you home will appraise higher or you will be out the appraisal fee."

This is true and an apraisal will probably cost a couple of hundred dollars whether you get it through your mortgage company or privately, so you want to be positive that your home will appraise above the 80% equity mark if you go this route. If it doesn't, you'll still have to pay the PMI and be out the appraisal cost.