re: Home addition/PMI

You really would need to consider what kind of upgrade to determine what will increase your value. Sq footage and bath count is the only real bang for your buck. If you are not in a subdivision, then the appraiser can pull from a reasonable distance, use like sized comparables, etc. But You will not get a $ for $ increase no matter what you do.

Your question is how are you paying for the addition. If you are planning to finance it, then there are several things to consider. Dropping PMI is one, but you realy need to research what your improvements are and are htere homes in the area that are valued significantly higher than yours. You could spend a ton of money on kitchens, baths, etc. Unless you do a ton of the work yourself,you may be better off selling and looking for a bigger home, let someone else take the hit for the improvements.

Consider this; a remodel is generally more expensive, unless it is just cosmetic. If you add sq footage, you could spend more than $100-$120 a sq ft for the addition and improvements if a contractor does it. Will your house appraise for that now?