write two drawbacks of p.m.i
Answers
It's like asking if there's a major disadvantage to getting smacked in the head once a month. "It's only a few brain cells".
Avoid it at all costs... if it's unavoidable - well... fine, but do your best to mitigate it.
Think of it as 2400 bucks a year that you otherwise would be able to save or invest - maybe not that much in the grand scheme of things, but man, you're flushing it down the drain, so as little of that as possible is a good thing.
I do think you're right in looking for low borrowing rate as a first priority. If the rates went up by 1% over the course of you getting a higher downpayment (assuming housing prices stay flat), and you're looking at a $300k loan (not quite real-world, since you'll actually be able to borrow LESS with a higher down payment)... at any rate, given that scenario, you may be looking at being out slightly more money than just taking the hit on the PMI over the 8 years or so you have it (although this would be more if you plan on living there longer).
My thoughts: if you can afford the PMI AND be able push a little extra principal every month, I'd consider it - rates can't stay low forever. You do want to get rid of that $2.4k annual drain ASAP, though.