[Super_Dave_D]

This is what a friend, who is in the business, says........

You can do a full 100% loan and not have to pay PMI. There are multiple ways around this depending on their credit scores. However, you would need to have the seller of the house you are buying pay closing costs or you will have to pay them out of your own pocket. Closing costs would be fairly minimal compared to putting 15-20% down.

If you go with the right lender, he can find better rates than Bank of America or Wachovia. We recently beat Bank of America by ½% and the guy actually works for them and received a discount.

30-year fixed would be my recommendation providing the payments are reasonable and in their range… otherwise the next best option would be a 40-year. Interest only and ARMs are becoming less popular right now due to market conditions.