My FHA mortgage is now 5 years old, so I inquired as to lifting PMI. I've made extra principal payments regularly. My contractual remaining term is 25y 0m, but my actual remaining is 21y 9m.

Current balance is $98,484.87. Bank says that I need to get to 78% LTV, which is $94,509.67. They want $3975.20 in order to eliminate the PMI, which runs $48.33 per month.

I'd like to free up that nearly $50 per month, but it is not absolutely critical at this time. According to the bank's calculator, without any extra payments, I'd reach that $94,509.67 level sometime in mid-2017.

What's the best financial practice here? Pay that money and eliminate the PMI right now, or stick it out for another ~2 years and preserve my $4k for other uses?

Thanks, experts.