When you are shopping around for a home loan, watch out because you can be ripped off for thousands if you’re not careful. In some instances brokers write in exorbitant fees that come out of your pocket. Sometimes the lender pays a kickback to the mortgage broker if he writes a higher than necessary interest rate for you too. If you do not shop the mortgage market you stand the chance of getting ripped off. You should comparison shop multiple lenders. You want to pay 0 points as well. These are hidden fees that you shouldn’t have to pay. If your points are 0, then look at the interest rate and the closing costs. One other thing to check out is that there is no prepayment penalty. You have to play tough though so you don’t get confused by the mumbo jumbo and sign something you shouldn’t.