Should I refinance for a lower monthly payment?

[Dagart Allison]

Here is my current situation:

30-yr fixed at 4.25%, current loan amount $166200, monthly payment $1115 (PMI included), condo purchased 9/15

Refinance terms:

30-yr fixed at 4.25%, loan amount $172793, monthly payment $1007 

Is it worth it to refinance? The entire reason I though about refinancing was to remove the PMI because I had put in sufficient upgrades that I believed it would bring my loan to value ratio to 80%. The refinance is a lender paid PMI and my appraisal did not quite make it to 80% loan to value. Basically, the savings on the monthly payment accounts for the PMI ($100). The down side is I now have $6500 more debt and originally I was going to sell the place after a couple years to invest in a more expensive property. But if I plan to hold it longer (5+ years) then it is probably worth the refinance, otherwise no, right?

[Jassem A.]

I probably wouldn't bother. After you pay it down to 80% then you should be able to get them to remove the PMI anyway