A Welcomed Tax Season

A look at how the upcoming tax season will be offering some economic relief.

With the housing market going through a major reset and talk of a possible recession, the government is attempting to stimulate our economy by offering an increased loan limit and rebate plan for tax payers and homeowners. This is not only welcome news for potential home buyers, but also for current homeowners looking to refinance. Below are a few government proposed strategies designed to boost the housing market and your wallet.

The Mortgage Forgiveness Debt Relief Act
As Benjamin Franklin once said, “In this world nothing is certain but death and taxes.” During this tax season, this statement rings true; taxes prevail as the housing market continues to fluctuate and homes drop in value throughout the nation. In order to reduce financial stress, the government has introduced the Mortgage Forgiveness Debt Relief Act.

Although the Act doesn't cut taxes altogether, it does help American families secure lower mortgage payments without facing higher taxes. Before the Mortgage Forgiveness Debt Relief Act was enforced, homeowners were losing money on both their homes and on taxes. Though their lender would forgive a portion of their mortgage, the tax code treated the amount forgiven as taxable income. The Mortgage Forgiveness Debt Relief Act gave homeowners the freedom to work with their lenders, refinance their mortgage and pay no taxes on any debt forgiveness they receive from now until the year 2010. Call Lakewood Capital Inc. today at 888-516-7555 to learn more about the Mortgage Forgiveness Debt Relief Act and your mortgage options.

Tax Rebate Program
In order to jump start the economy, the government is issuing rebates to more than 116 million families throughout the nation. This highly anticipated rebate will provide a much needed boost to everyone's bank account.

The minimum rebate issued to those eligible is likely to be anywhere from $300 to $600 for individuals, with an additional $300 for each child. The rebate limit for families is expected to be around $1,200, more than enough to make a significant dent on any gas and/or grocery bills.

Raising the Roof on Home Loan Limits
Congress is updating the National Housing Act in their efforts to combat the housing market slump. The proposed revisions will raise the limit on Federal Housing Administration (FHA) loans from the current loan limit of $417,000 to a limit as high as $730,000. The increase of the loan limit will not only improve the availability of safe federally insured loans, but will make home ownership more affordable and attainable.

Those looking to buy property are not the only ones reaping the benefits of this change. Homeowners who hold a sub-prime mortgage are also eligible to refinance into federally insured loans. This enables them to keep their homes and avoid the threat of foreclosure. Call Lakewood Capital Inc. at 888-516-7555 to discuss any new mortgage options that you may be eligible for.

Keeping You Informed...
As a borrower, it is important to watch the market and stay in touch with your mortgage professional who is dedicated to keeping you informed of the latest market trends and mortgage options. Take advantage of your mortgage broker's knowledge to improve your home equity and prepare for the opportunities available on the upside of the possible recession. Visit Lakewood Capital Inc. online or call us today at 888-516-7555, to learn more about the most cost-effective loan options that will fit your current situation and help you obtain your ownership goals.