As PMI gets close to getting paid off, the return on investment starts getting extremely promising. My first question, have you called the bank to confirm they will remove PMI at 80%? I've not personally had PMI, but I am under the impression you have to get down to 78% of the original purchase price before PMI comes off. Given that detail, I wouldn't pay off PMI unless 1) you were fully maxing tax-deferred buckets and 2) your combined PMI and mortgage interest rate was at least 10% over the remaining time period. Given your mortgage rate and PMI rate, you're paying close to 30% interest right now ($63.27*12/2980.42 + 4.5%), so yes, I would probably pay it off.