Getting a new mortgage in 2012 benefits potential and current homeowners
Jan 4 2012 5:32PM
Aside from the projected continuation of low mortgage rates throughout the new year, one Bankrate.com report says there are other reasons why 2012 is a good year to get a new mortgage.
According to the source, some potential homebuyers may be discouraged by recent reports of a damaged housing market. However, a lack of applications and activity does not mean buying a home is a bad idea, says the news report, as shrunken house prices and low mortgage rates will continue to provide buyers high affordability.
Some benefits of owning a home include not having to pay rent to a landlord while making a personal investment. Homeowners also receive federal income tax deductions, which make a difference over time.
Current homeowners may decide to refinance to get a better rate, says the source. Homeowners may also benefit from locking in low rates by changing to a fixed interest rate versus an adjustable rate that is subject to change within the market. The source also cautions homeowners equity and a decent credit score are required for refinancing.