re: Is avoiding PMI that important?

We're considering refinancing to a Lender Paid PMI loan right now. One thing to consider is that if you are paying PMI, you can eventually get that removed once you earn enough equity. However, with Lender Paid PMI where you pay a higher interest rate, the only way to get out of it is to refinance.

The risk is that by the time you have 80% equity in the house, you will probably have to refinance at a higher rate than what you could have had initially.