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When I bought my house last year, I had only about 8% of the purchase price for a down payment (though the bank's initial appraisal was for about $17,000 higher than the purchase price) but I figured that getting a low interest rate would offset the PMI payments if they went up.

Anyway, I can afford the total payment on the house but the PMI payment is sticking in my craw a bit.

Do I have any other options than taking out a personal loan for the ~$13,000 that it would take to pay down the remaining principal to get me to an 80% LTV on the property?

javanix
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I highly recommend you read the "related" posted linked to the right.

Once you have the loan a year, in good standing, and have paid the mortgage to 80% LTV, you can request removal of PMI. But the bank can charge you for an appraisal, and if the house dropped even a few percent in value, you might need to put up more money.

JoeTaxpayer
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