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CNN Money recently published an article including some really good advice on how to make (or save) money in 2012.

Housing Market Forecast

The article focused on the housing market and how more than 100 economists and real estate pros surveyed by MacroMarkets foresee annualized gains through 2015 of just 1.1% as the real estate market slowly works its way through a “mountain of foreclosures.”

According to Core-Logic, there are 5.4 million homes that are for sale or part of the market’s “shadow inventory.” Adding this to Freddie Mac’s forecast that says that 4.8 million homes will be purchased in 2012, leaving a healthy six months’ of inventory, this may mean that the worst of the housing market has passed.

Even though rates are silly low right now, this year’s strong Black Friday results and the sudden European crisis optimism, may lead interest rates to go up. How high, you ask? Jay Brinkmann, chief economist at the Mortgage Banker’s Association, expects the 30-year fixed mortgage rate to stay below 5% throughout 2012.

How to Save Money in 2012?

Ok, enough with the economic analysis…you want to know how to save money!

Here are some home-related savings tips as mentioned in the CNN Money article:

Buying a home: Downsize the dream.

This means that bigger is not always better. According to a survey by the National Association, home-construction firms expect U.S. houses to average 2,152 square feet in 2015 – down 10% from last year. This means that if you’re buying with the goal of selling it in the future, trends suggest that people are looking for smaller homes. So, if you buy a 3,000 square feet house, you may have a harder time selling it.

Selling a home: Price it right.

According to Joe Magdziarz, president of the Appraisal Institute, sellers and their agents should look at comparable sales data just within the past 90 days, to find the right price. You don’t want to be one of the 75% of homeowners who believe their home is worth more than what their agents felt the fair value was.

Already a home owner: Shorten your loan.

By refinancing your mortgage to a shorter term can save you significantly. For instance, CNN Money gives the example of a $250,000 mortgage, going from a 30 year at 4.2% to a 15-year at a 3.45% would save you $12,000 in interest over the life of the loan!

Don’t want to do a 15-year, or 20-year loan? You could choose a more flexible option, like the YOURgage, which lets you choose the term from 8-30 years with fixed interest rates.

Already a home owner: Refinance.

Even if you don’t have the 20% equity lenders ask for, you could do a cash-in refinancing, where you bring some cash to closing. Also, with all the homeownership programs and help, there may be something out there to help you refinance, even if your mortgage is underwater.

To learn read the full CNN Money article, click here

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