If you don't have at least 20% equity in your property and you hold a mortgage, lenders will require you to carry PMI. Since you only bought your home last year, most likely you haven't gained 20% equity unless you purchased it for below market value. The way to prove you have 20% equity is to get your property appraised again. For example, if you have a $80,000 loan on the house and the appraised value is $85,000, you only have about 6% equity. The appraised value needs to be at least $100,000 in order for the lender allow you to drop the PMI. Another option may be to refinance and take out 2 loans. One for 80% and the 2nd loan for (5-20%).