So we bought a home last year with an FHA loan, which means we have to pay PMI until our equity is 20% of the purchase price. At the time we got the house for a steal in an estate sale ($10-15k below market). Move ahead 18 months and the market has taken off. Last month our next door neighbors sold their house for nearly 30% more than we paid for ours. Obviously we aren't close to the required equity to remove PMI with 18 months of mortgage payments, but the appreciation has likely gotten us there.

So how difficult is it to get the mortgage insurance removed when our equity is almost entirely based on the appreciated value of a home?