Eventually all this deficit spending will lead to significant inflation. The Fed's QE program that printed trillions in new money not backed by anything will eventually lead to major inflationary pressure. The high jobless situation and cheap foreign labor is keeping it in check for now, but we're approaching a financial train wreck. I would hate to have a big balloon payment looming over me.

Why not spend a year building up the down payment to 10%, then do a fixed 80/10/10, avoiding the PMI, and choosing the length that makes the most sense for your future plans?