Should I go with my bank or a broker for a home loan?

Asked by chelle21689 (7907) December 29th, 2016 from iPhone

I’m not sure if I go with my bank for LPMI if t’s worth saving $80 per month losing out on $5,500 grant money. Please see below.
I’ve been working with a broker since before I even found a home.
Broker:
FHA at 4.75%
$5,500 grant toward down payment and closing
$2,500 paid by seller plus $545 toward warranty
$563.42/month plus $75 insurance
I’m already far in the process with the broker to close on the 12th. My bank claims they can get me a lower rate but we had to extend the contract out by two weeks. I think it may be too late to request for a grant if I do go FHA with my bank.
Broker CLAIMS that if I switch it will all go away (grant, seller paying for $2,500 closing and warranty). Not sure how I can lose warranty and closing when this was part of the offer to the seller.

Bank:
FHA at 4.12% (it may be too late to see if I can get a grant, not sure)
$515 plus $75 insurance fee
OR
LPMI
4.95% $0 monthly insurance at $558/ month

If I go with the broker who I’ve been with from the beginning, to be honest it will make closing much easier. We extended it two weeks due to holidays.