<prompt> Human: Renovating my basement - inspector noted that I could make some minor tweaks and call our gym a bedroom. Meanwhile, we bought this as a forever home so resale isnt important to us. Our mortgage has no 8020 clause and our rate is 3.5 so it doesnt seem like refinancing will ever overcome the next six years of PMI were three years in. I cant think of any good reason to officially increase the value of the house - it just raises our taxes. Am I missing something?  <response>: Youre pretty close. The only thing you need to make sure of is that your homeowners insurance recognizes a high enough rebuild value. It would be tough after a fire to claim your 200k home was really worth 250k. 