Hi Thomas - Unfortunately, that is pretty typical for the current market. A couple of things to consider before you spend the money on another appraisal: 1) It will take 7 months to recoup the cost of another appraisal as opposed to paying the MIP; 2) Will the lender accept another appraisal?; 3) What if the new appraisal comes in even lower?; 4) Are you still saving money (or achieving what you expected with the refinance)?: and lastly, talk with your tax advisor because the mortgage insurance premium may be tax deductible with new tax laws. Hope that helps. Good luck with your situation.

This sounds a little fishy to me. I'm not sure another appraisal is what you need, I think you may need another loan company. The $4000 drop IS typical but the added $42/month is what doesn't sound right. Why are you refinancing?
Ruth