You are best to consult a mortgage professional. PMI is a sore spot for many, but in retrospect, the lender is shelling out a lot of money on the loan, and is looking to be compensated for it. Today, with the new laws, you cannot simply get a new appraisal in two to three years, after gaining 20% equity in your home, and get the PMI removed. However you can always refinance down the line. If your credit is excellent, you can put as little as 5% down on a conventional loan, with a bit less PMI. Either way, even with PMI, today's low interest rates, and affordable home prices makes purchasing a home so sensible. And, with the write-off gained at tax time, it makes even more sense to purchase a home at this time.