The best way to evaluate different mortgages is to compare them in writing. Look at all the costs, including loan and origination fees and discount and origination points.

Ask what the Annual Percentage Rate (APR) of the loan is. The APR factors in both the interest rate and fees.

Be sure to ask for a "good-faith estimate" (GFE) in writing from each lender. A good-faith estimate will outline all the costs and help you compare lenders and mortgage products. A GFE is a best approximation of your final costs, not a guarantee. Still, you should not expect a large difference between the GFE and the final statement at your closing.

Compare different lenders and mortgage products with our mortgage worksheet.

See an example of a "good-faith estimate" at the US Department of Housing and Urban Development Web site.