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Mortgage options. How do I decide which is the best deal?

I have two brokers trying to get my business and have good faith estimates from both that cover a range of options. The lowest rate has the second lowest payment but has me paying more in closing. The ones without pointshave me paying either a higher rate, a higher payment, or both. This is the second time I've bought a property, but the last time was 20+ years ago and it's a blur. How do I decide which is the best deal?

Public Comments

1. The best mortgage will have a fixed rate, that is what you need to make sure you get. That way it will never fluctuate with the economy and you will never find yourself in the situation so many have found theirselves in. I would think with the housing market in the shape it's in, you should be able to get the seller to pay either all of or half of the closing, we have always been fortunate enough for that to happen. Just make sure you lock into a fixed rate... you can do that when you get pre-approved. Good Luck
2. If you have the cash for closing costs that is the best route. Just don't get in over your head on the mortgage ... 20% down, and no more than 25% of your take-home pay going to the mortgage. That formula will keep you from being house poor, and getting in trouble with debt in other areas of your life. Definitely FIXED RATE!
3. Since rates are pretty much just that, rates. 30 year fixed based on 10yr bnd, etc. Paying points can buy down your rate. It is best you go with a direct lender, not a broker. Since no one works for free you will always pay more. Try the below website, the nations largest lender and FHA approved.
4. You are getting some very poor answers here. I'd like to answer your question in more detail, but you have not provided enough for me to help you alot. First, I'll tell you that your first mistake is that you're not working with the right broker if you don't trust either of them to provide the best deal for you. Choosing the right loan officer has little to nothing to do with price. Interest rates change on a daily basis. You can ask for a rate one day and have it be different the next. It's really not fair to one broker if he quotes you a rate today and the market gets better and you get a better quote from someone else tomorrow. You should consider the fact that all legitimate brokers are selling the same loans. The difference between each one is if they'll come to the closing table with the same terms that they promised you up front. Nearly 90% of the loans that I do are exactly the same loans that everyone else can do. If you work with the right person, they'll actually be able to put both good faith estimates side by side for you and determine which loan program meets your needs. Anyone can pull your credit and try to lowball the competition, but it takes a true professional to provide the proper education that keeps you from asking questions like this on Yahoo Answers.