Mortgage Rate Options vs. Lender Credits vs. ?

[Quinten Sepe]

Hey All,

My mortgage broker got back to me with three options for our fee summary and amortization schedules.

Option 1:

Interest rate: 3.875%
Lender credit: $340.52
Total cash from borrower: $7,082.68
Total monthly payment: $934.36
APR: 5.276%

Option 2:

Interest rate: 4.000%
Lender credit: $875.45
Total cash from borrower: $6,552.67
Total monthly payment: $942.82
APR: 5.395%

Option 3:

Interest rate: 4.125%
Lender credit: $1,342
Total cash from borrower: $6,091
Total monthly payment: $951.34
APR: 5.513%

I'm initially inclined toward the lowest interest rate, but given that I can write the mortgage interest off (up to 1mil), is it better to take to larger lender credit?
Is there a key component that I'm not considering?

Thanks for your help!
-Q