There are several things that make up the costs of buying a home.  There are closing costs on top of any down payment even on loans that are 100% financing.  Things like title and appraisal fees, home owners insurance premiums, underwriting and processing fees, mortgage insurance, Home Owners Association transfer fees, agent broker fees, and points.  Depending on the rate you choose you can have reduced fees or use the rate to cover the fees.  This all comes down to how long you plan on keeping the home.  If the home is long term or move that 5 years, you are better off with the lower rate and pay the extra fees.  If less than 5 years, you are better off raising the rate to offset the closing costs.  But plan on 1-3% of your new loan amount to cover the fees for a mortgage.   Call me today and let me run the numbers for you to help you better decide what rate to fee combination works best for you and your family!