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Joe, dont you mean Norm's response? :)
@Clay,No, I'm not paying any points on the 3.5% offer.
That's good. shame on both lenders for not explaining the margin.
@Andrew,Your response made me go one step further and compare the index and margin. Turns out both offers have a margin of 2.25% and the index is one year treasury.@All,Thanks for your responses. I've finally decided to go with the online lender and keeping my fingers crossed that there won't be any surprises later.
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For Sale: $122,900
For Sale: $799,900
For Sale: $89,000