[flash]

Good advice. The one caveat I would add is to make sure you check your burn rate and ensure you have enough liquid cash for whatever may be coming down the pipe (i.e., budget). Once you pull the money and put it into the mortgage, it's not accessible unless you take out another loan.

I agree on dumping PMI ASAP. We got caught in a similar situation, and it was much harder to get the PMI off than we expected.