Homeowners who refinanced their mortgages with a 3% rate are now becoming accidental landlords. Get the full scoop in this article!

Homeowners who refinanced their mortgages this year to take advantage of ultra-low interest rates are becoming "accidental landlords," with some opting to rent out their homes rather than sell them. In this article, we'll explore why they're taking this route, the costs associated with it, and what advice you should consider if you're considering doing the same.

Understand the Risks and Responsibilities of Becoming a Landlord

Becoming a landlord involves more responsibility and potential risk than simply owning your own home. It's important to do your due diligence before renting out your property, as becoming a landlord comes with financial, legal, and emotional responsibilities. Before renting out your property, you should familiarize yourself with local rental laws, calculate the costs associated with being a landlord (such as maintenance fees), and make sure you have adequate insurance coverage.

Consider Leasing vs. Selling

If you refinanced your mortgage with a 3% rate and find yourself becoming an accidental landlord, you'll want to consider all of the costs associated with leasing. This includes monthly rent, tenant placement fees, repairs, ongoing maintenance costs, legal fees, and insurance. Additionally, depending on local tax laws you may also incur capital gains taxes when leasing instead of selling. Consider all of these potential costs before making any decisions about renting out your property.

Freddie Mac (Photo credit: Wikipedia)

Mortgage Rates Rising, But Still Remain Low

The average U.S. 30-year mortgage hit 3.91% last week. This is  the highest percentage for a long term fixed mortgage since March of 2012 according to Freddie Mac, one of the nation's largest mortgage buyers.

The average 15-year loan is now above 3% for the first time since May of 2012, rising from 2.98% to 3.03% this week. Adjustable rate mortgage rates are also on the rise, with a one-year ARM loan average moving from 2.54% to 2.58%. The rate on a five-year ARM sits at 2.74%, up from 2.66%.