We have online payments set up with Countrywide and never had to pay a cent for it.

We also didn't escrow our homeowners insurance, and didn't pay anything for that, either. I don't know what this $1,040 fee you're talking about is...ask them what this is called, I have never in my life heard of anyone charging a fee to not escrow insurance. Sometimes, if you decide to not escrow either taxes or insurance, it bumps up the rate a bit because the loan is considered higher risk - maybe you are paying them the difference to keep the rate lower. Clarify that with them though.

The best way to deal with their customer service department is to sign up on their online site and email customer service through there - that was there is a paper trail, and they always respond within 24-48 hours.

You won't be signing a good faith estimate at closing - it's an estimate, that's why it's called a Good Faith Estimate - at closing you have to sign a HUD-1 Settlement statement - always ask for a copy of this in advance, and review it closely. Ask questions if you have any. And, if you can, I would recommend to use your own attorney to represent you at the closing, not the one that the bank uses - they are there for the bank's interests, not yours.

Any mortgage company will let you buy down your rate with points - literally, anyone you go through will do that. If you plan on keeping your house for a while, it's probably a good idea to get the best rate that you can, and keep it that way.

I've been in the mortgage business for 5+ years now, as an underwriter, a broker and a processor...so any questions you have I may be able to help with. Feel free to shoot me a message if you want