I am not a super technophile. But I do know that in the race for Google Fiber between several communities, Greensboro is in the top 10 according to one blog.

Some may be surprised. I’m not.

Some communities have opted to make temporary name changes to themselves to show their enthusiasm for getting super high-speed fiber. But even with out taking such measures Greensboro has precisely the environment that can highlight the positive potential for fast, faster, fastest internet speeds. To whit:

• there are 2 universities and 3 colleges and a school of law in Greensboro. And UNC Greensboro and NC A&T are poised to make some real noise with the joint effort in nanotechnologies.
• the arrival of FedEx will lead to high tech industries in the area
• Greensboro-based RF Micro has just announced it will develop solar cells and is way ahead of the curve on this.

Don’t take my word for it. Check out this video. (I love it when smart people agree with me).

Here is the city’s draft of it’s application to Google.

So, we don’t need to change our name to make Greensboro and Google a good fit. Hey! We won’t even need to change the monogram on the towels!

My previous post referenced the interest rates that were available a couple of days ago. The point of the post was to communicate that there is mortgage money available to be loaned.

In that post was hidden in plain sight the fact that interest rates do not come in a ‘one size fits all’ package. So, if a lender gives you a straight up quote without asking things like how much the purchase price of house is or how much your planning on putting down or what your FICO score is, thank them and move on to another lender. And if you are asked these questions, please don’t feel like you’re being played somehow.These are variables that absolutely impact the answer as to what an interest rate will be.

On top of all that, remember that interest rates can change frequently. They’ve dropped about .5 point in the last week.

Why all the probing when all you want is an answer to what you’ll pay for an interest rate on a mortgage?

Much of it is a result of the turmoil in the credit markets recently. Lending is all about leveraging risk. As stated in the previous post, lenders need to lend money. It’s their raison d’être. But good lenders need to look at many factors to determine the likelihood of being paid back and therefore cut a break to those presenting less risk and charge a bit more to higher risk borrowers.

[Much of this reasonable circumspection was thrown out the window over the last few years, thereby creating the calamity before us, but that is a topic for another day...and a bottle of wine.]

Now, back to those variables.

Something that is a new practice, and it looks like this just started a week or so ago, according to my trusted source for all things mortgage related, is lenders actually charging a higher interest rate for those putting down 20% than those putting down 5%.

“Wha???” you might exclaim. And you’d be justified. That just seems weird. Why should a borrower who’s willing to have skin in the game to the tune of 20% of purchase price be charged more than one putting down 5%?

The reason is that, as has always been the case, if one puts down at least 20% on a mortgage, no PMI (Private Mortgage Insurance) is required. Anything less and the borrower does have to pay for PMI, thus insuring the lender in case of borrower defaults and stops paying on the loan. The reasoning was that if someone has committed 20% of their own money, that was ‘insurance’ enough that they would move heaven and earth to avoid defaulting and risk losing their home.

That was B.C. (Before Calamity). Lenders now fear that the same 20% commitment will not protect against default, and since the loan isn’t covered by PMI, they have greater risk.

My personal feeling is that this will not last. But it may.

So, should one keep their down payment money in their pocket and get the lower rate? You need to put pencil to paper and get all the data to make that decision. The lower rate may be countered by the PMI premium. And that premium is not buying you any actual equity in the house.

Ask a good lender, get the facts. The truth shall set you free.