I want to purchase a home using a conventional 30 year loan @ 3.50% interest. I want to get out of paying the Private Mortgage Insurance. I understand I need to pay upfront more than 80% LTV. I understand that this is the loan to value ratio. Is the value, the value of the sales price or the appraisal price?
Let's say that the home cost $130,000 and the appraisal was set at $160,000.
In a different scenario, If I pay down payment of 5% instead of 20%. How can I calculate, when I get to 80% LTV? Do I need to include the interest?