PMI isn't awful. Look into what it will cost. It will be dependent on your credit score. I put 5% down and have a monthly PMI payment. Which has an initial "eff

PMI isn't awful. Look into what it will cost. It will be dependent on your credit score. I put 5% down and have a monthly PMI payment. Which has an initial "effective interest rate" of much must less than the mortgage interest rate! It's better than a piggy back loan and you get rid of it by paying down the principal to 80%. Some very simple to use numbers to explain what I'm trying to say: House price: $300000 Mortgage interest rate: 4% 20% to avoid PMI: $60000 5% of $300000 = $15000 down payment. Monthly PMI payment: $110 Annual PMI payments: $1320 Simple numbers: I'm "borrowing" $45000 for the first year and it costs me $1320. Which is approximately 3% Overtime since the principal to pay it down shrinks but the payments don't the "effective rate" goes up and eventually will be more that the mortgage interest rate. Pay it all off then. You're more leveraged for better or worse. Your mileage may very.you need to talk to lenders and find what your PMI payments would be. They will vary. Lenders will try to get you to roll the insurance payments amount into the loan or some other screwy things where they make more money and get it up front.