Add up the total lender fees for that rate including points and loan related fees. There are a number of different fees paid in connection with the loan, and some lenders have different names for them. One lender might offer to waive one fee and then add another one. So when comparing loans of different lenders you should look at the total sum of ALL loan related fees. These fees can include processing and underwriting, mortgage insurance premium, appraisal, the cost of a credit report, tax service, application, commitment, wire transfer, etc.
Points can include discount and origination points and have to be converted into dollar amounts.
Step 1 is to use the same interest rate as the basis for our comparison. Now we need to calculate the cost of the points and add that to the lender fees to get the total cost of the loan. Looking at the total cost of the loan, Lender A has the better deal, even though they charge more than Lender B for the same interest rate. Landmark Mortgage has developed a worksheet to help you with comparison shopping. It is available in pdf format.