If your house is in so cal, no matter if you, countrywide or daffy duck chooses the appraiser, the value will not have risen. Even if you pay it down to 80% of the original loan the liklihood that it wont still be underwater isn’t good and you will have a fight on your hands to get rid of the pmi, check into the details of that law, I’ll bet there is a clause for value loss unless the lawmakers were drinking the kool aid. How far off were you? did you put 15% down? 10%, 5%, 0%, if it was 15% it may be worth your while to look into your options, if it was 0%, get used to the PMI.