Talk to your mortgage professional about this and they can illustrate how the differences will affect you over the long run.
You're probably referring to "origination fee" - this is 1% of your loan amount, and it is a one time fee.
This fee is included in your APR (annual percent rate) calculation.
When comparing deals/loan costs - you got to look to compare apples and apples, meaning:
One bank shows a note rate of 3.75% and the APR of 4.25%
Another bank shows same note rate of 3.75% but the APR is 4.05%.
The 2nd one is a better deal and a cheaper cost loan.
Hope this helps,
Beachfront Realty, Inc.
Charlie Summers, Bellmarc 917-376-1648