Interest rate vs PMI

[Ricardo Becerra]

Hello guys.. so I have a quick question. Your help and guidance is greatly appreciated. 

SO... I am looking at doing a new construction loan. I have 3 options. 

1. Freddie Mac, 10% down 90% loan. and i can pay 2.00% (5,400.00) origination on the loan and lock in 4.25% That being said todays loan rates are 4.00%. So if my home was completed today, they would throw the 4.25 out the window and give me the lower of the 2 interest rates. 4.00%.

2. Also Freddie Mac, 10% down 90% loan. and i can pay 1.25% (3,375.00) origination on the loan and lock in 4.625% and hope that the future rate will be lower. Again today 09/18/2017 rates are 4.00%. If for some reason the Feds raise the 30 year fixed rate in the next 9 months or by 06/01/2018 beyond 4.625% i will be again given the lower of the 2 rates. 4.625%

basically i am hoping that i can pay the lower of the two origination fees on the loan, giving me a high 4.625 interest rate. But if the rate in 9 months when the home is completed is lower then the crazy high 4.625 they will lower it to the going rate. It is kind of a gamble. 

But here is the real question..... option 3.

3. Washington Federal, 10% down 90% loan. and i can pay 1.50% origination on the loan and lock in 4.50% even though today the rate is 4.00%!! but that bank does not have any PMI!

according to all forcast, in 2018 there will be 1-3, 1/4 point or 0.25% interest hikes anyways. so i might end up paying 4.25 to 4.50% anyways AND pay PMI if i dont go with washington federal.

someone please help!!!