Do you comparison shop your Columbus mortgage terms? Should you?

In short, Yes. But only if you are certain that you’re comparing apples to apples. It’s almost always easier to do so AFTER you’ve got the address of the house you want to buy. That way, every would-be lender is starting from the same point and working to offer you the best possible deal they can.

Be smart and understand what each lender is offering and how they differ. For God’s sake, Ask Questions! From a New York Times article the other day…

“A poll of more than 1,300 homeowners conducted by Harris Interactive, a market research firm, for LendingTree, and published in December, found that while 96 percent of Americans comparison-shopped for “anything,” only 61 percent said they did so for mortgages. The remaining 39 percent took out home loans based on just one quote — even though 9 in 10 of those buyers said they knew that rates varied among lenders.”

For Lenders, is a 30 year fixed rate mortgage a Financial Frankenstein’s Monster?

Regarding government (over) involvement in the mortgage market–something that has become a given and without which few mortgages would ever get done–This is a good read. It appeared in Today’s New York Times Opinion Page by Bethany McLean..

For a homeowner, a mortgage with a 30-year fixed rate (especially one that he can pay off early without a penalty) is a wonderful thing. For lenders and investors, however, it is a financial Frankenstein’s monster, an unnatural product filled with the potential for losses. Absorbing some of the risk of those losses is a large part of what the government does in the housing market……

….After all, other countries manage fine without the widespread availability of 30-year fixed-rate mortgages. But is there an American politician alive who would accept responsibility for depressing the housing market further?….

Read the rest here

Important news on FHA changes and a mortgage rate prediction for Columbus

If you’re considering putting your hat in the ring to purchase a home in Central Ohio, you’ll appreciate this quick update on FHA mortgage happenings and a prediction of higher interest rates to come from Dan Green of Mortgage Reports….

The Scoop on the New Good Faith Estimate

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.

Columbus Home Mortgages – Updates on FHA, Jumbo Loans and Stated Income

I’ve said before that FHA changes are coming and that Stated Income Loans are dead. Here is Mortgage Man Dan Green with a healthy prognosis on Jumbo loans and the scoop on FHA loans after March 31….

More from Dan on FHA changes can be found here.