<prompt> Human: I really want to eliminate PMI from my mortgage as its costing me 200 a month. My home value is essentially unchanged from when I bought it 4.5 years ago, 255k. I am presently at 14.5 equity, meaning that if I wrote a check for 14k Id be able to eliminate the PMI.I can afford to write that check, but my question is does it make sense in the long term? I think Ill be in this place for another 5 years or so. Where the market will be at that time I dont think anyone can predict, but Id like to see your guys take on paying off a big chunk of home equity and eliminating PMI vs. putting that money to better use and just sucking up the PMI until I reach 20 equity. Your thoughts?  <response>: So by paying 14k right now youd be saving 200month or 2400yr which means youre getting a return of about 17 on that money for each year youd otherwise be paying PMI. So what else would you be looking to do with that money? I wouldnt reccomend draining your emergency fund to pull it off, but its certainly a lot better than you could do almost anywhere else. Also consider that your mortgage company may require you to get a new appraisal to verify the home is still worth enough so that could add a few hundred in expenses. 