I like option 3 because I’ve heard it isn’t as easy to get PMI dropped as one might think. Even if you get PMI taken off in 3-4yrs the payment in option 2 is only $31mo cheaper then option 3.
I would also not personally pay $1500 extra per month to mortgage unless your purchase is way below current market values.
Might be better to put that in savings or emergency fund in case market took another big hit.
