<prompt> Human: I am trying to buy a condo in DC and want to put 2037; down to avoid PMI. I can spend up to 80k on a down payment plus closing costs, so looking at a 1BR around 300k 60k down payment for 2037;.I just met with a loan agent who said he could give me a conventional 30 year fixed loan with an APR of 4.83637; 2037; down.But he said banks would offer a lower APR if I paid mortgage insurance---so he ran a scenario where I put down 19.9937; for a 30 year fixed loan, and came out with an APR of 4.60737;. after 19 months my LTV will be 7837;, eliminating the PMII asked him to explain how its possible that banks would give a lower interest rate i know its different from APR but this is effectively what were talking about, i think despite a lower down payment, and I didnt understand his explanation at all. My brother said he may have showed me a higher rate for the 2037; down scenario and then presented a better option with PMI---because he may get a bonus for selling a loan with PMI. Im currently shopping around other loan agents to see if they can beat the first guys offer.Does anyone have any experience with this? Would a bank offer a lower rate if it comes with PMI?Thank you!  <response>: There are a few odd corner cases where the 19 down, paying PMI can actually be cheaper due to quirky pricing models.That said, definitely shop around for rates with more lenders as well. 