Seth Jacobs

Mortgages Are Still Available, Despite the Credit Crunch

The recent months have been marked with great chaos and disruption as the financial crisis took its toll on the mortgage, investment and lending markets. Our nation, as well as the rest of the world, has feared for a total collapse until the financial problems were one-by-one resolved and the gravity of its effects countered. Presently, despite the fact that a credit crunch still exists, current homeowners and prospective home buyers still have much to look forward to.

Government Bailout and Interest Rate Cuts
Credit may be tight, but it is not frozen! Thanks to the government's recent bailout, individuals throughout the nation are still able to find conforming and FHA-insured mortgages. With the United States Department of Housing and Urban Development (HUD) and the government's help, 400,000 families have been able to keep their homes by refinancing their mortgages with HUD's affordable mortgage insurance program.

Modified Mortgages
Several banks have already begun to provide modified and more affordable mortgages to borrowers. IndyMac and Bank of America Corporation, which recently acquired Countrywide Financial Corporation, are just a few of the banks that are modifying borrower mortgages in hopes of making home ownership more feasible and affordable.

Contact Lakewood Capital Inc. today at 888-516-7555 to make sure your current loan is well within your financial means or to see if you may qualify for a mortgage loan modification.

Borrower Qualifications
All loan programs require that the borrower meet several income, employment and credit guidelines. Though these loan restrictions have gotten tighter, Lakewood Capital Inc. has the latest interest rates and mortgage application guidelines at hand so that you can be sure you do not stretch your financial limits.

With the exception of Jumbo loans, there is almost no difference in the availability of money this year compared to last year. The only difference is now borrowers must provide documentation, including W-2's, bank statements and tax returns. Before applying for a loan, be sure to discuss your program options and application qualifications with Lakewood Capital Inc..

Learn more about the current borrower qualifications by calling us at 888-516-7555 or visit us online at http://lakewoodcapitalinc.com.

Keeping You Informed
Lakewood Capital Inc. is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at http://lakewoodcapitalinc.com, or call today at 888-516-7555, to obtain custom loan options designed to fit your needs and help you obtain your ownership goals.

Fannie Mae and Freddie Mac Rescue and What It Means for You

Over the recent weeks the government has placed both Fannie Mae and Freddie Mac into a conservatorship, taken on full agency responsibility and started addressing the debt and internal management and accounting delinquencies of both companies. The government's backing served as an economic life jacket benefiting not only Fannie Mae and Freddie Mac, but the nation as a whole.

According to the United States Secretary of Treasury Henry Paulson, the three objectives of the government take-over include, market stability, mortgage availability and taxpayer protection. Although the objectives are clear, many consumers are unsure what to expect over the next few months as the Fannie Mae and Freddie Mac conservatorship and financial bailout plan unfold. Below is a brief overview of the impact of the Fannie and Freddie take-over and what it means for you, the consumer.

Fannie and Freddie
Federal National Mortgage Association, better known as Fannie Mae, and the Federal Home Mortgage Corporation, known as Freddie Mac, have been privately owned and operated since 1968 as government sponsored enterprises (GSEs). Both Fannie Mae and Freddie Mac have purchased mortgages from banks, savings and loans and other lenders to generate cash for the mortgage brokers and encourage more home loans. With the implicit support of the Federal Government, Fannie Mae and Freddie Mac have financed most of the home loans being made in America. Now that this government support is widely known and in effect, consumer faith in both agencies has sustained.

Borrower security is of the utmost importance during this time of financial uncertainty. In order to uphold the mortgage and housing industry and provide affordable home loans to consumers, James B. Lockhart, director of the Federal Housing Finance Agency (FHFA), has taken control of Fannie and Freddie which, in turn, will facilitate the following:

• Lower mortgage rates
  Mortgage rates are expected to fall as the United States Treasury purchases mortgage-backed securities (MBS) and bad assets from both Fannie Mae and Freddie Mac. Now that the Treasury will buy the mortgage backed securities, their prices should rise, as demand increases, and MBS yields drop. As yields drop, so do mortgage rates, thus making home ownership attainable and affordable.
  
  Both Fannie Mae and Freddie Mac announced the cancellation of their planned 0.25 percent charge increase to bank's adverse market delivery fees in hopes that lenders would pass along savings to borrowers who have not yet closed on their mortgage loan. Call Lakewood Capital Inc. at 888-516-7555 to learn more about our mortgage programs and competitive interest rates.
  
  
• Potential modification of delinquent mortgage programs
  In order to encourage more affordable lending programs for those borrowers who are delinquent in their mortgage payments, Fannie Mae and Freddie Mac have initiated additional financial incentives for lenders that modify their troubled client's loan programs.
  
  A Lakewood Capital Inc. mortgage specialist will help you assess your current financial situation to determine if you qualify for a new, low fixed rate loan. Call 888-516-7555 today to schedule a meeting.
  
  
• New mortgage rules
  With the presidential elections just around the corner, government officials are holding off on determining any new lender requirements, yet many are speculating that borrower credit score requirements, loan-size-to-home-value ratios and down payment requirements could come up for review.
  

As the nation draws closer to selecting the next president, consumers throughout the nation prepare for economic change, yet the economy's financial situation is not something that can be fixed over night. Working with a reliable mortgage specialist and practicing responsible borrowing is the key to staying on the upside of the economic downturn.

Keeping You Informed
Lakewood Capital Inc. is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at http://lakewoodcapitalinc.com, or call 888-516-7555 today to obtain custom loan options designed to fit your needs and help you obtain your ownership goals.

Borrowing Against Your Home has Its Benefits

With fuel, food and home prices fluctuating, families are finding that a home equity loan can provide much needed financial relief to unexpected debt and large family expenses. Because an individual's home is, most likely, their largest asset, homeowners are using the equity in their home to fund a variety of items like medical bills, education and even their escalating living expenses. Take a closer look at the basics and the benefits of tackling current and anticipated debt by borrowing against your home.

Before you begin the home equity loan application process with Lakewood Capital Inc., it is imperative to know the two types of home equity loans: fixed rate and lines of credit. Both loan types are offered with loan terms that generally range anywhere from 5 to 15 years and require the borrower to repay the loan in full if the home against which they are borrowed is sold.

Though there are borrowing and term similarities, each loan has its differences. A home equity loan (also known as a second mortgage) is a fixed amount that you borrow to be paid off over a certain number of months, while the home equity line of credit (HELOC) is a variable rate. Much like a credit card, a HELOC pre-approves you, the borrower, for a certain spending limit of which you may withdraw using special HELOC credit cards or checks. Call Lakewood Capital Inc. at 888-516-7555 to determine which loan type (fixed rate or line of credit) best fits your needs and to discuss some of the home equity loan benefits listed below.

More Money for Your Effort
As you may know, loan applications are quite a hassle and often don''t provide enough monetary resources to fund large purchases like remodeling your home or sending the kids off to college. Home equity loans only require one application and can provide borrowers with an easy source of large amounts of cash.

Low Interest Rate
The home equity loan interest rate is much lower than credit cards and other consumer loan rates, which is one of the reasons why so many homeowners use their home equity loan or line of credit to pay off their credit card balances. Using a home equity loan as a debt consolidation tool is a viable option for many homeowners, yet it is important that the borrower is committed to limiting any future credit card use.

Tax Break
With a home equity loan, you, the homeowner, can borrow a large sum of cash for any purpose you like and still deduct up to $100,000 of the interest when filing your tax returns. Typically the $100,000 can be increased for any borrowing used to improve your home, such as a kitchen or bathroom remodel. For example, a borrower may spend a total of $100,000 on hospital expenses and college tuition and $10,000 on a new roof, the interest on the entire $110,000 would be deductible as home mortgage interest.

Borrowing against your home has many benefits and can be tempting to use in order to splurge on expensive luxuries. To avoid the perpetual cycle of spending and borrowing, work with your Lakewood Capital Inc. mortgage professional and conduct a careful review of your financial situation before you apply for a home equity loan or line of credit. Our mortgage experts will not only make sure you understand the terms of the loan but also check to ensure you have the means to make the payments without compromising other bills.

Keeping You Informed
Lakewood Capital Inc. is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at http://lakewoodcapitalinc.com, or call us today at 888-516-7555, to obtain custom loan options designed to fit your needs and help you obtain your ownership goals.

Decoding Your Credit Report
Gain a better understanding of the factors that determine your eligibility for a loan.

The importance of financial responsibility is oftentimes overlooked in a materialistic nation comprised of excessive credit card offers, stretched lines of credit and the weakening dollar. In order to boost financial responsibility and provide more accurate information to credit bureaus, the company that calculates FICO scores has introduced a revamped credit scoring system. Many consumers will benefit, but others may face higher interest rates which may affect their monthly mortgage payments. Become one step closer to financial confidence by gaining a true understanding of the factors that influence your credit score.

Determining Your Credit Score
The restructured FICO credit scoring system, created by the Fair Isaac Corporation, is reported to go a bit easier on consumers who make an occasional mistake, yet really crack down on those who have multiple late payments and delinquencies. The weight put on certain factors, like late payments, have changed, while the benefit of authorized-user status has been dropped from the scoring system altogether. These changes may strengthen or slump your score by 20 or more points. Get to know the other factors that impact your credit score by reviewing the details below.

Length of Credit History
The longer your credit history, the better. Lenders like to see that you can manage your credit accounts responsibly over time. Now that credit scoring model ignores authorized-user accounts, it is important for those “piggybacking” to establish their own credit on a new and separate account. The omission of authorized-user accounts from future FICO credit reports will enable credit bureaus to protect lenders from those trying to misrepresent their credit risk.

Payment History
Payment history is one of the most influential factors in determining your credit score. As mentioned earlier, future FICO credit reports will forgive a few late payments, but if your account shows multiple late mortgage payments and delinquencies you may see your FICO score drop.

Contact Lakewood Capital Inc. at 888-516-7555 to discuss affordable mortgage products that will enable you to maintain excellent credit and payment histories.

Amount Owed
Another significant factor that is reviewed by the credit bureau is the amount owed on your credit accounts. Having a mortgage and several credit cards will not classify you as a high risk borrower, but owing a lot of money on several accounts will. Make an effort to keep all credit balances low so credit bureaus and lenders do not assume you've overextended your financial capacity.

New Credit
Opening several credit accounts over a short period of time may present you as a risk to lenders. This is especially so for those who do not have a long, established credit history. Try to keep new credit accounts to a minimum.

Credit in Use
Be aware of the types of credit accounts you use. This includes credit cards, financial accounts, retail credit accounts, installment loans and mortgage loans. The FICO scoring program analyzes all active credit profiles when determining your financial responsibility.

Remember, higher credit scores are the most desirable to lenders; but if yours takes a dip, no need to fret, you may still qualify for certain loans and mortgage products. Review your finances and work with Lakewood Capital Inc. so that you may better understand the role your credit score plays in your pursuit of an affordable mortgage product.

Keeping You Informed
Our mortgage professionals are dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at www.lakewoodcapitalinc.com, or call 888-516-7555 today, to learn more about the best loan options for your specific financial situation. Together we can obtain your ownership and financing goals.

Recent national reports about the slow housing market have raised many questions for concerned homeowners: “Is now the time to sell?” “Should I buy that vacation home in Miami?” In order to really discover the answer to nagging real estate market questions, homeowners must collaborate with their mortgage and real estate professional to explore the real estate situation on a local level.

Should I Buy?
Tips for Buyers:
The market is in your favor, interest rates are low, more housing is available in select markets and sellers are offering great buyer incentives. Below are a few tips to help you successfully shop for new real estate.

• Take your time, but not too much time Yes, home prices are lower, but continuing to wait in hopes that the price will decline may backfire on buyers. If you find a property that you can't live without, make an offer and negotiate. Work with your real estate professional and suggest a price that reflects the local market and sales' price of the homes nearby.

• Watch out for competition The National Association of Realtors is expecting more than 6 million home sales in 2007, so don't think you are the only one out there shopping. People are constantly moving due to new job opportunities, marriage, divorces and more, so be prepared to make counter offers.

• Know your loan According to bankrate.com, interest rates are still very low. The average national interest rate on a 30-year fixed mortgage is about 5.79 percent. But, before you sign, be sure you fully understand your loan products. Work with your real estate and mortgage professionals to find the best option that will fit your financial situation.

Should I Sell?
Tips for Sellers:
The National Association of Mortgage Brokers predict a big selling boom this year, so be prepared for lots of competition. Below are a few tips that will help you successfully sell your real estate.

• Set a realistic asking price Over the past few years, home sellers have been able to get away with asking extremely high prices for their property in select markets. Now that the market has cooled, sellers may feel that they are getting the short end of the stick. According to Jim Gillespie, president and CEO of Coldwell Banker, sellers “need to realize that a home is where you live. It's not a lottery ticket,” it is a long term investment.

Work with your real estate professional and investigate the local real estate market and what the sellers within your community are asking for their property. Setting a proper asking price will obtain more offers.

• Fix up your home Making a great first impression is crucial. A few minor improvements and a fresh coat of neutral colored paint to visible exterior and interior parts of your home will help catch buyers' attention.