Getting rid of PMI within the first 3 months of Purchase

[Pragati Soni]

All,

I am purchasing a home which will be my primary residence and I putting down 15%. I was going to change it to 20% but that would mean I have to pay for the interest rate to remain the same essentially paying $800 in fees to keep same interest rate as I would have at 15% down payment.

I asked my Lender if I can remove my PMI within the first 3 months as long as I pay an extra 5% of the Purchase Price. He said I could as long as I pay the 20% of the original value of home then PMI will be automatically removed. I specifically asked him if I would have to get refinancing and he said I did not. I rather only pay 15% down now to avoid the $800 extra in fees if I can remove PMI immediately. Is this normal or is my lender missing something? I have asked some people and many are saying I could only do that by refinancing so I am a bit confused.