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Financial Lending Options are Improving for Consumers In 2012

Now that we have started of the New Year, it’s time to take a look at how financial lending options are improving for consumers in 2012. The mortgage rate predictions for 2012 are expected to remain below 5% for the entire year; they were around the 6% range for most of last year. There are many experts in agreement that a 30 year fixed mortgage will stay below 5% for the entire year.

These are very low rates, so they should be very enticing to anyone seeking out a mortgage. Unfortunately, many home buyers won’t be able to qualify for these rates because they don’t qualify for a home loan. It is much harder to qualify for a home loan today than it was before the housing crisis started.

As long as we don’t see another blow to the US economy, the people behind on their credit card or mortgage payments are expected to drop throughout 2012, says the credit reporting agency Transunion. Which means applying for a new credit card or home loan will improve for consumers this year.

This year we should see a significant decline in foreclose rates also. There may be a little pressure on unemployment and house prices in the first half of the year, but after that we should see some major positivity like new increases in the quality of credit originations and consumer confidence, ability and willingness to pay their mortgages. If things go as predicted delinquencies should fall by a rate as high as 18% this year as opposed to last year, this significant drop will keep rates above the pre-recession rate of 2%.

With credit card delinquencies down the number of cardholders behind on their payments by more than 90 days has reached the lowest level in almost 17 years. These historically low credit card delinquencies are reflective of stricter regulations and tighter lending policies which generally prevent people with poor credit from getting a new card. Lenders are still very willing to lend but are really out pursuing the best customers by offering promos like a no fee 0% balance transfer card for up to 24 months.

What has factored into the large drop of mortgage and credit card delinquency is a shift in consumer priorities. In the past people that were strapped paid their mortgage first to protect their primary investment and the attachment of their home ownership. When so many people were not able to pay on their mortgages they chose to make their credit card payments first.

In today’s improving economy, consumers have found that credit cards are a very valuable asset because they can be so flexible. With that in mind consumers have been making a real effort to make their payments on time.
With 2012 looking like it’s going to be great year for financial lending options, it may be time to take advantage of a new credit card offer or a home loan today!

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