Only 5% down and no PMI, too good too be true?

[Mila Makhanova]

Hi BP community, 

Looking to purchase my first property and slightly short on making 20% downpayment. Working with Quicken Loans and they are offering a loan with a slightly higher interest rate (about 0.5%) but only 5% downpayment and no PMI. It seems like I understand how it works, it appears to me that they are just lumping the cost of PMI into my mortgage by raising an interest rate, but it still looks like a good deal. Am I missing something? Something I particular I should pay attention too? If anyone had experience with such mortgage, please share. Thanks for your help,

Mila