Dropping PMI with a higher interest rate

[Quynh-Chi Nguyen]

Hello

Need some advice about dropping PMI ($140). Quicken Loan called me and told me that they can can pay for my PMI because of my 820 credit score but my interest rate will be .5 higher. (My balance is not getting down to 80 or 78 percent rule yet)

I need to put down $500 deposit but will be returned upon closing. No other fees. They will pay for the appraisal. 

My current interest rate is 4.375%. The new interest rate would be 4.87%

Should I do it? They have been calling me day and night for this and I don't have time to think it through yet. 

Thanks 

Chi