[Keen]

What it the house worth? (I am guessing you bought it for 250k based on your comment "Who has $50,000 to put down?!?!?!")

Or more to the point I guess I should ask how much are townhomes going up in value per year in your area? That growth in value since your purchase should count against your 20% requirment and in some areas that would get you to the level you need very quickly...you just have to pay for another apprasial.

If you have the money put down what is need to bring you to the 20% level...Any 80/20 loan (or other type of loan) on $29k you get is going to cost you more than you are earning on the ING account.

And I would rather be saving the $173 a month rather than throwing it away on worthless PMI, which is of no value to you.

Anyway with the growth in value on your home over the last year and a half maybe you wont need the entire 29k.