I had filled out an application with Lending Tree couple of weeks ago and I got bombarded with calls and emails. Their rates were no better than what I got with my local lender. My experiences with Internet lenders are that because they don't know the local customs and requirements, there are always hiccups along the way. This is extremely bad during the buying process because there are contractual obligations and timelines you are expected to fulfill.

Unless you are planning to stay there forever, I would not pay 3.8 points! And just remember, housing plans always change, the U.S. average is about 7 years in one place. You can do the math to see if the 3.8% is worth it. IMO, probably not. Good luck.