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Which is a better overall mortgage: 3.625% rate and 20% down ($50K), or 4.125% rate and 0% down, no PMI?

(Reiterating for formatting reasons)

I'm looking at two mortgage situations:

A) 3.625% rate and 20% down (which is $50K)

B) 4.125% rate and 0% down, with no PMI

I think the second option has a better overall value, especially if I put the 50K difference in the market.

But somehow, it doesn't feel right to pay for a higher interest rate. Any advice? I'd love someone to check my math too.

Here's my math:

A) Real cost over 30 years: -214,475.78

B) Real cost over 30 years: -284,906.62

50K invested over 30 yrs: 405,918.00

Total: 121,011.38

This means choosing plan B has a difference of netting me 335,487.16 more than plan A?

Tools used:

https://ostermiller.org/calc/mortgage.html

https://mdm.ca/tools/compound-growth

submitted by /u/chocoshark
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/cwetko/which_is_a_better_overall_mortgage_3625_rate_and/
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