If you’re in the market to buy a new home this year, you may have heard mention of the new Good Faith Estimate that has been in use since the beginning of the year. There has been much written nationally regarding the new form. Much of the drama has revolved around whether or not it is actually helpful to consumers and much of the griping has come from lenders and title companies who’ve had to adjust their routines a little.

I think anything that clarifies what to expect going forward for the home buying consumer is a positive step for the industry. You know, complete disclosure and total transparency and all. So far this year, there’s been a little hand-wringing by both Delicious Real Estate Buyer’s lenders and title companies but no hold ups, real confusion or problems around closing time–having to do with this anyway.

So please note that there is a new form, it’s for your benefit, and you can find it right here. For all the discussion, it’s really pretty self-explantory. If you don’t think so, the two humorless NAR guys in the suits in this video will do their best to explain it to you. Remember, always compare apples to apples when judging one lender’s program with another lender’s program.

Which way are Columbus Mortgage rates going?

It’s hard to imagine that mid December of 2009 wasn’t a potential bottom point for Columbus Mortgage rates. Today, the best rates are somewhere around 5.125% and as the economy improves (or at least as we’re told it is improving) the rates will rise.

If you plan to buy this year, I would do it sooner rather than later. I’m reading a lot of predictions about year-end 2010 rates in the 6’s.

Don’t just take my word for it….From Reuters the the other day….”The U.S. Federal Reserve will have to raise interest rates as the economy improves or risk losing the public’s confidence in its commitment to keeping inflation low and stable, a top Federal Reserve policy maker said on Tuesday.

Charles Plosser, president of the Philadelphia Federal Reserve Bank, said expectations for future inflation are currently “well-anchored,” but warned that there is “considerable uncertainty” clouding the outlook for price pressures over the next two to five years.” more.

A couple weeks ago at a Realtor meeting, a lender was touting a program through Parkvale Mortgage Corporation that still offers 95% financing without PMI and no rate increases. This is for clients with a minimum credit score of 720 or above.

I believe that’s an 80/15/5 product. That means an 80% first mortgage, a 15% second mortgage and a 5% down payment. Most of these types of loans have gone away. Not all that long ago, 80/20 100% mortgages were all the rage. Of course we all know what happened next.

This is available on Parkvale’s conforming fixed or adjustable, jumbo fixed or adjustable, construction perm loans and Sellers may pay up to 3% of the purchase price for buyer’s closing costs and prepaids. (Yes, that’d mean you’re only coming out of pocket 7% for the down payment) Of course, most buyers these days who feel a little cash strapped are avoiding conventional loans altogether and are going straight for an FHA loan which offers as little as 3.5% down.

Parkvale is a portfolio lender and that makes a difference in what they can and can’t do. Often, Portfolio lenders can be more flexible than big box lenders. I deal often with Arlington Bank who is also a portfolio lender and, for the most part, if the project/building/home and the buyer look good from a few different angles, they’re willing to make a loan after discussion in round table. Sometimes there might be a catch like opening an account at the bank or putting a little more down but when you can get a loan you couldn’t get anywhere else, a concession here or there is OK.

I don’t usually talk much about individual lender’s mortgage packages and you should explore many different options. I’m not suggesting or endorsing any program here, just passing along useful information. I’m sure readers are always looking for options. This is one.