Interest rates vs. fees

[Administrator]

I posted earlier, but just as background, my fiance and I are trying to select a mortgage and need advice on shopping around. I've found what appear to be some pretty good rates on Amerisave.com, but I'm a bit confused. On their website, you give them some basic information (loan and down payment amount, what kind of credit score you have - good, excellent, etc.), and they give you a list of loans that might andquot;meet your needs.andquot; For each loan, it tells you the interest rate, monthly payments, APR, lender points and fees, and closing costs. For the most part, the fees go up as the interest rate goes down. So my question is - how do you weigh interest rates vs. fees in choosing a loan? Is it better to get a 5.375% rate with $2500 lending fees or a 6.000% rate with $500 lending fees? Also, will the lending fees and closing costs be rolled into the mortgage, or will we need to pay those at closing?


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(Source: mortgagefit.com)