Do I really have to eat above my BMR??

OP, if you are a sedentary person, then your daily needs are going to be near your BMR. So to lose weight at a normal pace, you're going to have to go below BMR. You will be fine.

BMR is not a useful number to you because you aren't sleeping 24 hours a day. Your actual energy needs are your TDEE. To lose weight, you have to eat less than that, which is what MFP will tell you.

Hi Alluptome!
Just a question for you - have you ever had a body composition done? I'm getting mine done (again) next week to see where I'm at. It's another way to see youir results, rather than just a number on the scale. Last time I had 35% body fat. Should be much closer to 30% this time around.

Another question: I have not looked at your diary much, but wondered about how many grams of protein you are eating every day. I average 25-30% and it helps me stay satisified and within my calorie goal. I also went to the Kashi protein calculator to see how much protein they recommend I eat. It's higher than the 15% that MFP suggests.

I also went the IIFYM website to calculate your BMR and TDEE. BMR is 1600 as you've said, and your TDEE is 2274 with exercise 4 days a week. With a 20% deficit, you should have a calorie goal of about 1820. So, while you and I have some difference (mainly height), we are pretty similar calorie-wise. I'm 5'6" and currently weigh 187.5 at age 34. Interestingly enough, the Scooby calculator says your BMR is 1450.

Just some thoughts for you! Just want to help in any way I can!!
Lisa