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Depends on a lot of things.
First, you CAN get a no PMI loan at above 80% LTV, but you're generally paying a higher % for it. But it's a good option. I just bought another house and opted for a 1% higher interest rate to avoid PMI. In both cases, the PMI or the higher interest rate goes away after 2 years if the LTV is below 80% including appreciation. Your payments are usually the same either way, but the interest you pay is tax deductable whereas the PMI is not...therefore, you have an advantage opting for the higher interest rate.
If this is going to be a primary residence where you are planning on living for a long time without selling, get a fixed rate and try to put down at least 5% to reduce the interest rate. It'll pay off in the end, unless you have some guaranteed high interest investments you can use that money for (and if you do, tell me what they are ;).
If you're planning on flipping it or selling it within a few years, get a variable rate that's locked for a number of years. You'll save money on the payments and don't have to worry about the rates jumping on you, since you want be holding onto the loan.
If you're buying as an investment property, then no money down works well, because you have a higher leveraged position, assuming the interest rate hike doesn't increase payment dramatically. Theoretically, let's say you put down 10% on a 100,000 home with an interest rate of 6% and rental income of $750/mo (I'm ignoring closing costs, taxes, insurance and maintenance for ease of calculations...just for comparisons). Your payments are $539.60/mo, so your yearly ROI is 19.88%. At 1% down (can't calculate with 0%) and an interest rate of 7%, your return on investment is 27.61% (mortgage payment is $658.65). Cool. It doesn't always work out that way, so you have to play with the number a lot...that's why it's difficult for anyone to give you a straight answer for your particular situation.
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