borrower paid vs. lender paid. How does this change things?

IF you are getting quotes from two different lenders and they are offering the same rate, ask for a copy of the Truth-in-lending so you can compare the APR rates. If rates/terms/loan amounts are same I would choose lender with lowest APR. Lender paid means the lender is paying the broker directly. Borrower paid means you are paying the broker.

Jeff Phillips
HPI Financial
415-867-6488
jeff@hpifinancial.com

I would ask that lender to show you want the next rate lower would look like. But, typically with VA pricing the next rate lower might be a $4,000 difference and the savings in the monthly payment only, say $30 so 4000/30 = 133 or it would take 133 months in monthly savings to pay for the loss in credit. Any extra credit from the lender will be applied as a principal reduction payment at closing so it would not be wasted.

Jeff Phillips
HPI Financial
Phone - 415-867-6488
Fax - 415-962-0474
jeff@hpifinancial.com
CalBRE#: 01879516
NMLS#: 242083

Jeff Phillips answers here are very good. I would only add that you should ask your existing lender for more pricing options than you are being given (because they can do that). Nobody has just one rate. This principle is explained here: http://www.iloanhomemortgage.com/todays-rate-mortgage-second-language/. I can't be certain from what you've said but it sounds like you might have seller paid closing costs. If that's the case, this article explains both how multiple rate and costs work and how they interrelate to seller paid closing costs and would therefore be completely relevant.