Mortgage lending is mechanical, impersonal and competitive. Hunt for the best loan -- interest rate, points, processing costs and, on adjustable mortgages, the most favorable adjustment features. Don't pay much attention to who's originating the loan or where the lender is. And don't place too much value on your current bank or thrift relationship, either. Odds are your loan will be sold once or twice over its term.

What's best for you?

Deciding which mortgage is best requires a close look at your present circumstances, future earnings and financial goals.

On the other hand, say you plan to put the home up for sale in three to five years. Then points and closing costs (and the ability to pay off the mortgage without penalty) are more important than getting the absolute lowest available rate.

For most home buyers, the choices are these:

• Will your down payment be small or large?

• Do you want a long-term or shorter-term loan?

• Do you want a fixed-rate or adjustable-rate mortgage?

• Will you pay points for the lowest-rate mortgage or will you shop for a loan with few or no points and therefore a higher rate?