When shopping for a Mortgage rate, the new gimmick is the option where a Lender does NOT charge for underwriting the loan (sometimes called administative fees, etc). This charge usually ranges from $700 - $1000 depending on the Lender, so can you really expect something for nothing? NO! If you accept a loan w/o the charge, there is an additional .250 to .625 charge that applies to what determines the final % rate, depending on the size of the loan ( the smaller the loan the higher the charge). Thus your final % rate could go up .125 to .250 %. IF you do not plan on being in the home long, then perhaps not adsorbing the Lender fee is for the best. However, if you plan on staying in the home past several years, paying the Lender fee in the closing costs and getting the lower % rate will prove more cost effective. For up front service call us- DIVERSIFIED MORTGAGE BROKERS---- Tel: 434-237-3143, Email: email@example.com, Web: www.diversifiedmortbrokers.com.. WE EDUCATE & DELIVER !