When my husband and I just bought our house, we 
went with a type of loan called an "FHA" loan. 
Now I don't know if these exist in other states 
by that name, but I figure they're available 
since it's a government backed thing intended to 
help people buy their first house. . . With our 
FHA loan, we're saving about $4000 on the 
downpayment (FHA only requires 3% down instead of 
the 5% most loans require) and because the PMI is 
rolled into the total amount of the loan (instead 
of tacked onto the top of your monthly payments), 
we're saving another $60-$75 per month there too! 
The best thing is, when/if we get 20% paid 
towards the house, it is still possible to drop 
the remaining PMI. (Meaning rolling it into the 
total of the loan doesn't make it impossible to 
remove later.)

Seriously!! It is THE way to go. ^_^  That is how 
I am sitting in my brand new computer room *and* 
still waiting for Taro's package of sale cels to 
arrive. ^_~  I'd ask whatever bank is doing your 
mortgage about it. ^_^

Many Sharp Smiles,
--Drac