I know this may seem like a pretty stupid question but I figured I can get a quicker answer from here....

I purchased a brand new house 1 1/2 years ago in a new neighborhood for a good price. Purchase price was roughly $200k. I have finished the basement, and with house prices rising I figure value might be around $250 in another year maybe. Anyway, I am currently on a 80/20 loan. If my home value increases to $250K can I refinance with a regular 30 year or 15 year fixed and not have PMI since I will now have approximately 80% equity?

It has to be apprassed again. When we refinanced, the prices had gone up in our neighborhood enough that we had "20" percent equity, so we could drop the pmi. so if it apprases for that much then yes it counts.

Quoted: It has to be apprassed again. When we refinanced, the prices had gone up in our neighborhood enough that we had "20" percent equity, so we could drop the pmi. so if it apprases for that much then yes it counts.

Cool, thats what I thought, just wanted to check.

You can also check with your current mortgage holder to determine if there's a process to re-appraise the property and have the PMI removed.

Since you're on the 80/20 mortgage, you have to refinance after an apprasial or pay off the 20% loan. If you'd gone fully with one lender (100% loan), it would be just the apprasial.