10% down or 20% and NO PMI???

10% down or 20% and NO PMI???

Hello everyone from Washington state, USA. Here is a question I'd imagine comes up often but I cant find it anywhere on a forum search.  My wife and I are looking to purchase a 400k home and we both have a credit score around 750. We've been told that if we stay there part of the year, its a second house vs a rental property. Which we definitely plan to use the property about a month a year.  So here is my question. 

Scenario #1. 20% down.... No PMI mortgage insurance. Pay the 20% down, then be extremely careful furnishing, since thats 80k dollars.  Lower mortgage rate, lower bills. More $ to be made, more risky. 

Scenario #2 is 10% down... PMI of 125 bucks a month. Pay the 10% down, and now since we're only 40k dollars paid, we have more security, more money to put into the house and furnishings, but we're out PMI for the life of the loan. 

What are your thoughts everyone? And of course... I'd REALLY in a perfect world, only like to hear from those that have dealt with this issue, or had to face this decision, thanks in advance for your time. 

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