By Rodney Anderson
Out with the old! In with the new!
That’s my credo for 2012, and I’m already beginning to see many smart consumers using that credo and finding great reasons to obtain a new mortgage in 2012!
Here are the top 6 reasons that people are looking at new mortgages in the new year:
1 – Buying a Home
People are taking advantage of continued low interest rates now that it’s 2012… and being a homeowner is more affordable than ever thanks to these historically low interest rates. In 12 of the 20 major metropolitan cities in the U.S., it’s actually cheaper to own than to rent. There are downturns in some economic areas, but that means opportunity for buyers. Meanwhile, rental rates across the country and across the Metroplex are skyrocketing … which leads me to the No. 2 reason people are buying homes …
2 – Buying homes as investment properties
Now, remember … this isn’t a game. This is a business! It’s important to know that you’ll need a minimum of 20 to 25 percent down, that you’ll need to have to have excellent credit, that you’ll need to have to money in the bank and that you’ll want to have the education to succeed as a real-estate investor. When executed properly, owning rental property can build your financial muscle.
3 – Refinancing to get a better rate
Just when you think rates can’t get any lower, it happens again … and again! Last week, with all the good news on the job numbers, rates should have gone up, yet they actually went down again! I see the economy taking a turn for the better, and at the same time I see refi rates remain attractive. This combination means opportunity for all of us.
4 – Helping family members buy homes
Folks, be very careful here. As I advise in my book “Credit 911,’’ co-signing a loan to help a family member means you are lending them your good credit – you are potentially attaching their bad habits to your name. That’s dangerous. There’s a difference between giving a gift and being on the hook for someone else’s mortgage. Think before you sign, beware, and consider the risks before taking this step.
5 – Refinancing to get cash out
Whether it’s paying off those high interest credit cards, remodeling your home, or sending kids to college, if people have equity in their homes, they are looking for ways to use it, especially at these incredible low rates. A great option to consider if you have good credit and equity in your home!
6 – There is good advice available!
A mortgage is likely the largest financial transaction of your lifetime. It’s no time for guesswork or “Amateur Hour.’’ The very best advice is available to you, and I’m glad to provide it free of charge! Join me at my upcoming CREDIT WORKSHOP on Tuesday, January 17 at the Richardson Civic Center. It’s absolutely free, and full of information that can guide you in the areas of credit, mortgages and money. I’d love you meet you to discuss these issues and much more!
The workshop starts at 7:00pm sharp! I hope to see you there!
