<prompt> Human: Hey all, Im planning on buying a property with my SO in the near future. I currently own a rental condo, but its fully paid off since I bought it in cash and never got a mortgage on it. Were looking at condos in the NJNYC area for about 450k-600k since were looking to keep our monthly payments at around 2800month max. Some areas have 15 year tax abatements which allow us to afford a more expensive property. We have no problem getting to 20 down payment, since we have about 150k-200k in fairly liquid assets. Ive been looking at 30-year mortgage rates and theyre about 4.5 which is pretty high. A friend of mine mentioned that I could possibly opt-in for a FHA loan which usually gives lower rates, however, the monthly payment is higher due to PMI. Ive read that PMI automatically goes away after youve built about 20-22 in equity.Given my situation is it possible to apply for a FHA loan, and then immediately pay a lot of principal so I have 20-22 in equity in the property so I get a lower monthly payment lower interest rate than a conventional 30 year mortgage?  <response>: Since 632013, the rules on PMI or MIP were changed.11 years is the minimum term for PMI, so your plan is not going to work. 