First time home buyer loan help

[Blue Fury]

Okay, I signed a contract to build a house in league city. Figured it was time to put my money towards something with equity.

So here is the problem. I bought a spot in Sedona which is off league city parkway in league city. The home builder says if I use their lender I would save roughly 5k on the title fees, lender fees, etc. Well I was approved at 5% down @ 3.7% but the issue is the pmi of nearly 200$ a month and has to be paid for 5 years no matter if my equity is up to 20% even if i put more each month. If I were to put 10% down would there still be pmi?

Also compass bank in friendswood offers 5% down with no pmi but a little higher interest rate? Is that something to look at?

Would like some help please lol.

Thanks