Why do Mortgage lender’s interest rates vary? is it wise to choose the cheapest?

So forclosure in Hawaii is not a big issue but prices have dropped but homes are still expensive in Honolulu. I looked up mortgage loans and the cheapest offer was 3.75% for a 30 year-term and 4.25% for the most expensive offer. Is it wise to get the cheap one? and why do most people choose the 15 year term. I know its faster to pay it off but as the years pass inflation rises and the value of the dollar goes down and your salary will hopefully increase but your monthly payment stays the same plus I do not plan on having kids so if I die before paying up it will be all up to my sister to pay the rest.

I am located in Hawaii.
Looking for 30-yr fixed rate mortgage.
Seems Internet Mortgage Lenders (IML) offer better interest rates than local lenders.
Concerned about long term viability and stability of IMLs.
Concerned about responsiveness and lack of local representative.
Are IMLs able to consistently close loans at specified rates?
Anyone have personal experience with them?
What do realtors think of online lenders?
Specific lenders of interest include: The Money Store, AimLoan, Home Finance of America

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