Generally it is best to pay discount points if you plan on holding the loan for at least 7-10 years. If you will probably pay off the loan in a shorter time than this it is usually best to take a par rate. It will generally take a few years to make up the cost of the discount points. If you divide the difference in the mothly payment between the par rate loan and the discounted loan into the cost of the discount points it will tell you how long it will take to recoup the costs of the loan. When this is the case it can make a great deal of sense.
Closing costs vary from loan to loan, sometimes the variance can be sizable.
This is the primary reason you may experience difficulty pinning lenders down on their closing costs as you shop. An escrow account is an account established to pay the annual homeowners insurance and property taxes due on your home. Interim interest is the daily interest which will accrue between the date of closing and the end of the month when your first payment will not be due until the second month. Additionally the applicant must have re-established credit during this period of time. Otherwise a borrower with a previous bankruptcy will need to pursue non-conforming loans which have larger down payments and higher interest rates.