"The monthly mortgage insurance needs to be paid for at least 5 years and also until the loan amount reaches 78% of the home's value at the time the loan was made (not current value)."

Thanks for this great article, Shane.  As I've said many times before, I wish I'd participated in this forum before I bought my house!

This MI info  is really encouraging, IF I understand it correctly.

I've been under the assumption that  the 78% was based on current value....and with declining home values, this could potentially be difficult....or take quite a while.  I figured I might never get out from under the MI.

So, if the house appraised at  $200K at time of purchase, when loan balance reaches $156K (78% x $200K), and MI has been paid for at least 5 yrs, the MI can be dropped?!?!?

What is procdure for stopping the MI??  I'm still 3 yrs out (at the very least) since I re-fied March '09, but I'd like to plan ahead!