Wednesday, December 30, 2015

What are Mortgage Points and Should I Get Them?

When taking out a mortgage at the Lake of the Ozarks, you'll have to decide if you want to purchase mortgage points. As your Lake of the Ozarks mortgage lender, I'm here to help you understand mortgage points so you can make the right decision for your situation.

What are Mortgage Points? 


A mortgage point is a fee equal to 1% of the loan amount. There are two types of points: discount points and origination points. Discount points are actually prepaid interest on the mortgage loan. The more points you pay, the lower the interest rate on your loan and vice versa. Borrowers can typically purchase up to 3 or 4 points, depending on how much they want to lower their interest rate. Origination points are charged by the lender to cover the costs of making the loan. 

Should I Purchase Mortgage Discount Points? 


Your decision to purchase mortgage discount points should be based on a number of factors, such as how much cash you have available for a downpayment and how long you plan on staying in your new home. Let's take a look at some of the advantages and disadvantages of purchasing these discount points:

Advantages to Buying Mortgage Points

  • Lower Interest Rate 
  • Smaller Monthly Payments
  • Pay Less Interest Over Life of the Loan 
  • Build Equity Faster 
  • Points are Generally Tax Deductible

Disadvantages to Buying Mortgage Points  

  • Larger Upfront Costs 
  • Monthly Savings May Be Negligible 
  • You'll have Less Cash on Hand for Expenses
  • Takes Longer to Break Even 
  • You'll Lose Money If You Sell/Buy Before Breaking Even 
  • Money May Earn Better Return Elsewhere
  • Smaller Mortgage Interest Deduction

 When it comes to purchasing a home at the Lake of the Ozarks or refinancing, I'm here for you every step of the way. I'll discuss financing options, offer competitive interest rates and back it up with the First Class service you deserve. For all of your Lake of the Ozarks home financing needs, give me a call at 573-746-7211.

For Lake area news, resources and tips on financial services, please 


Michael Lasson
Sr. Residential Mortgage Lender
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049

Direct:  (573) 746-7211

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.
 

Tuesday, December 22, 2015

Federal Funds Rate Rises For First Time In Seven Years

Last Wednesday, the Federal Open Market Committee announced the first increase to the Federal Funds Rate in seven years. This increase in the rate recognizes the considerable progress that has been made toward restoring jobs, raising incomes and easing economic hardships facing our country today. The increase also reflects the Fed's confidence that economic factors still lagging behind desired levels will continue to improve, particularly inflation, manufacturing and new home construction.

What is the Federal Funds Rate? 


The Federal Funds Rate is the interest rate used when depository institutions (banks and credit unions) lend reserve balances, or money, to each other overnight. Reserve balances are amounts held at the Federal Reserve to maintain depository institutions' reserve requirements. Institutions with surplus balances in their account will lend to those institutions in need of a larger balance. The Federal Funds Rate is an important benchmark in financial markets. It was held near zero to support economic recovery following the worst financial crisis and recession since the great depression.

What Does the Increase Mean for Mortgage Rates?


While the increase to the Federal Funds Rate does not have a direct impact on home loan rates at the Lake of the Ozarks, we could see an increase in the near future. It's important to keep an eye on economic news. The economic conditions that made the Fed's finally comfortable with a rate hike, and the further strengthening of the economy, could also amplify investments in stocks, which could negatively impact bonds. Those bonds include mortgage bonds, to which home loan rates are tied.

For now, Lake of the Ozarks mortgage rates remain attractive. Now is the time to buy if you've been thinking about it. Give the best mortgage lender at the Lake of the Ozarks a call at 573-746-7211 today about your financing options. When it comes to your financing needs, I'm committed to working with you every step of the way!

For Lake area news, resources and tips on financial services, please 


Michael Lasson
Sr. Residential Mortgage Lender
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049

Direct:  (573) 746-7211

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.
 

Wednesday, December 16, 2015

Getting a Mortgage When You're Self-Employed

Being your own boss can have its advantages, except when it comes to purchasing a home. While it's not impossible for the self-employed to get a mortgage loan at the Lake of the Ozarks, it can be more difficult. It definitely requires advanced planning. Here are a few tips for the self-employed, to help you through the process:

1. Showing Proof of Income. 


Anyone applying for a mortgage has to show proof of income, showing accurate proof of income though, can be difficult for the self-employed. You also want to make sure your income is relatively consistent; while lenders can ignore seasonal spikes, they don't want to see a decrease in income from the previous year. This leads into the next point about choosing your deductions wisely, as these deductions will affect your income that is reported.  

2. Don't Take Too Many Deductions. 


If you know you're going to apply for a mortgage in the next two years, be careful what deductions you take. The more deductions you take, the lower your income looks on paper. Keep in mind that your Lake of the Ozarks mortgage lender is going to go by what the IRS forms say, not what you say you brought home. While taking deductions for your business has its benefits come tax time, it can pose a huge disadvantage when it comes to getting a home loan.  Random business expenses can come back to haunt you in the form of a lower taxable income, which results in a harder time qualifying for a loan.

3. Maintain a Good Credit Score. 


Whether you're self-employed or not, your credit score plays a big role in determining your loan approval. You don't want to jump through all the hoops of proving your income to find out your credit score isn't going to cut it. Make sure to maintain a good credit score in the months leading up to applying for a mortgage, and even after you've applied. Be sure to pay all your bills on time, use as little debt as possible, and don't open too many new credit accounts, especially in the 6-12 months before you apply for a mortgage.

Other tips for anyone looking to apply for a mortgage will also apply to those who are self-employed. While you may have to jump through a few extra hoops, the process of applying for a mortgage is the same as that of someone working for someone else. If you're self-employed and looking to obtain a home loan at the Lake of the Ozarks, give me a call at 573-746-7211. I will work with you every step of the way, providing the first class service you deserve!

For Lake area news, resources and tips on financial services, please 


Michael Lasson
Sr. Residential Mortgage Lender
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049

Direct:  (573) 746-7211

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.
 





Tuesday, December 8, 2015

Enjoy Spectacular Christmas Light Displays at Lake of the Ozarks

Christmas is just 3 weeks away! What is your favorite part of the holiday season? Maybe it's spending time with family, all the delicious food or the awesome decorations and Christmas lights. At the Lake of the Ozarks, we've already started celebrating! If you're looking to get into the Christmas spirit, check out some of these local Christmas light displays:

Lake of the Ozarks Holiday Lights


The Lake of the Ozarks area is home to several annual drive-thru holiday light parks. Each year they open toward the end of November and stay open through the holiday season. While donations are gladly accepted, each of these light parks is absolutely free. You can easily check them out while you're passing through the area or while you're here visiting for the holidays!

1. Enchanted Village of Lights 

 
Location: Laurie Fairgrounds
Date: Now through January 2
Hours: Open Nightly 5-9 PM (10 PM on Weekends)

The Enchanted Village of Lights is one of the largest drive-through holiday light parks in Mid-Missouri.

2. St. Patrick's Festival of Lights


Location: Shrine of St. Patrick in Laurie
Date: Now through January 1
Hours: Open Daily 6-10 PM

The Festival of Lights at the Shrine of St. Patrick, Hwy 5, Laurie, is the oldest light park in the area. It was started in 1981 with hundreds of lights decorating the buildings and grounds and has continued to grow each year. With 4,000 strings of lights, over 60 automatic timers and more than 350 extension cords, the Festival of Lights has turned into one of the major places to see.

3. Versailles Unity Circle of Lights


Location: City Park in Versailles
Date: Now through January 1
Hours: Open from Dark until Midnight

For the 9th straight season, the city of Versailles will light up its city park for the Unity Circle of Lights. The holiday light park is named after the "Unity Circle," a monument erected at the park entrance to show cooperation among various entities in the community. The Unity Circle of Lights is located at the junction of Highways 5 and 52 and will feature as many as 40 lighted displays, including several animated holiday scenes for the family.

4. Osage Beach Holiday Lights


Location: Osage Beach City Park
Date: Now through January 3
Hours: Evenings

Holiday themed lights will be on display at the City Park and at various locations along Osage Beach Parkway every evening. Bring the kids to meet and visit with Santa at the City Park on Saturday, December 19th from 3 PM to 5 PM.

In addition to holiday lights, the Lake of the Ozarks community has many great Christmas events you can participate in. If you're considering purchasing a second home at the Lake of the Ozarks, you could become a part of our great community and participate in events like these all year round. For all your Lake of the Ozarks home financing needs, give me a call at  573-746-7211.

For Lake area news, resources and tips on financial services, please 


Michael Lasson
Sr. Residential Mortgage Lender
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049

Direct:  (573) 746-7211

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.
 


Wednesday, December 2, 2015

What Causes Interest Rates to Move Up or Down?

You've heard everyone saying that interest rates are near historic lows. How did they get there? Why are they going to go back up eventually? Your Lake of the Ozarks mortgage lender is here to explain what causes interest rates to move up  or down. The interest rate you're offered is an important piece of the Lake of the Ozarks home loan process.

How Mortgage Rates Work


Mortgage rates move up or down in eighths of a percentage. For example, if you don't have an even 4%,  you will be offered something like 4.125%, 4.25%, 4.375%, 4.5%, 4.625%, 4.75%, or 4.875%. A change of a mere .125% may not seem very big, but it could mean thousands of dollars in savings or costs annually. When you see rates advertised with a different percentage, something like 4.86%, that is actually the APR which factors in the cost of obtaining the loan. Another thing to think about with advertised rates, is that they are an average of rates and will not be the exact rate that you'll receive.

How Mortgage Rates are Determined


While many different factors can affect interest rates, the best indicator of whether mortgage rates will rise or fall is said to be the movement of the 10-yr Treasury Bond yield. While most mortgages are originally financed as 30-yr mortgages, most homeowners either pay them off or refinance them in around 10 years. This is why the 10-yr Treasury Bond is a great measure of the interest rate change. In addition, Treasuries are backed by the "full faith and credit" of the US, and therefore are the benchmark for many other bonds as well. To get an idea of where mortgage rates will be based on the 10-yr Treasury bond, use a spread of about 1.70% above the current 10-yr bond yield. The spread accounts for the increased risk associated with a mortgage vs. a bond. This spread can change and should only be used as a way to ballpark where interest rates currently are. For specific details on current interest rates, please contact your mortgage lender at Lake of the Ozarks.

Factors that Cause Mortgage Rates to Move


Typically, when bond rates (or bond yield) go up, the interest rate also goes up. However, you don't want to confuse the bond rate with bond prices, as they have an inverse relationship with interest rates. Let's take a look at a few other factors contributing to the rise and fall of interest rates:

1. Economic Outlook - When the economic outlook is poor, investors turn to bonds as a safe investment. When purchases of bonds increase, the associated yield falls and so do mortgage rates. However, when the economy is expected to do well, investors will place their money in stocks, causing bond prices to decrease and interest rates to rise.

2. Economic Activity - Economic activity including jobs reports, Consumer Price Index, Gross Domestic Product, Home Sales, Consumer Confidence, and other data on the economic calendar can move mortgage rates significantly.

3. Federal Funds Rate - If the Federal Funds Rate changes, mortgage rates can swing up or down depending on what their report indicates about the economy. 

4. Inflation - If inflation fears are strong, interest rates will rise to curb the money supply, but when there is little risk of inflation, mortgage rates will most likely fall.

While the 10-yr Treasury bond is the best indicator of where interest rates are going, they don't always match up. There have been times and will be more times, where mortgage rates rise faster than the bond yield. Just because the bond yield rises 20 basis points, doesn't mean that mortgage rates will do the same. In addition, these rates are only averages and your unique situation will be the biggest factor in what rates are offered to you. The best thing to do is talk to your mortgage lender to see what options you have for a mortgage at the Lake of the Ozarks. Lakelender Michael Lasson will discuss your options and offer competitive interest rates, backing it up with the first class service you deserve - call 573-746-7211 today! 

For Lake area news, resources and tips on financial services, please 


Michael Lasson
Sr. Residential Mortgage Lender
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049

Direct:  (573) 746-7211

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.
 

Tuesday, November 24, 2015

Celebrating Thanksgiving at the Lake of the Ozarks

With Thanksgiving just a few days away, what are you thankful for this year? Maybe it's your family or friends, your home or food, or a combination of all of the above. Your Lake of the Ozarks mortgage lender is thankful for many things, including the opportunity to live in a such a great community! If you're looking for a place to enjoy a Thanksgiving feast this holiday season, check out these local options:

Thanksgiving Buffet at Tan-Tar-A


Enjoy a traditional Thanksgiving buffet with all the trimmings - without stepping foot in the kitchen! Adults: $28.95, Children Ages 4-12: $14.95, Children Ages 3 and Under: Free, Seniors (55 and Above): $18.95. Prices do not include taxes or gratuities. Dinner runs from 11 AM to 5 PM. Call for reservations - 573-348-3131. 

Thanksgiving Dinner at Old Kinderhook 


Join us at The Trophy Room Thanksgiving Day from 11 AM to 4 PM for a delicious buffet featuring turkey, prime rib, salmon, ham, sweet potatoes, green bean casserole, dressing and more! Adults: $33, Seniors: $27, Children Ages 3-10: $12, Children Ages 4 and Under: Free. Please call 573-317-3560 for reservations.

Thanksgiving Buffet at The Lodge of Four Seasons


Join us at HK's Restaurant and Bar from 11 AM to 3 PM for a Thanksgiving feast with all your traditional favorites and desserts that will make your mouth water!  Call 573-365-3000 for reservations and pricing.

Eldon Community Thanksgiving Dinner


The Community Thanksgiving Day Dinner will be served from 11am to 2 pm at the Eldon Community Center. Everyone in the community is welcome to attend – if you do not have a place to go for Thanksgiving Day, please plan to attend this dinner. For home delivery, please call (573) 280-4956.

Thanksgiving Buffet at H. Toad's


Join us for a delicious and varied buffet of Thanksgiving fare including Pan Seared Herb Encrusted Salmon, Hand-Carved Virginia Pit Ham and many more with, of course, Slow Roasted Turkey and H. Toad's Green Bean Casserole. Our extremely popular buffet features sumptuous Entree Selections, Soup and Small Bites, Salads and Desserts. All for only $25 per person. Enjoy a relaxing meal while listening to the sounds of Spontaneous Serendipity from 11 AM to 3 PM on Thanksgiving Day.Call for reservations - 573-365-5620.

Thanksgiving Buffet at the Inn at Grand Glaize 


Bring your family and friends and join us for a Thanksgiving feast from 11 AM to 3 PM. Enjoy this unique all you can eat dining experience with a panoramic view of the Lake. Adults: $18.95, Seniors: $15.95, Kids 12 and Under: $9.95, Kids Under 3: Free. Call 573-348-4731 for reservations.

Happy Thanksgiving from the best mortgage lender at Lake of the Ozarks! If you're thinking about upgrading or even downgrading your home this holiday season, I'm here to help you with all of your home financing needs. I'll work with you every step of the way, offering competitive rates and backing it up with the first class service you deserve! Give me a call today at 573-746-7211. 

For Lake area news, resources and tips on financial services, please 


Michael Lasson
Sr. Residential Mortgage Lender
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049

Direct:  (573) 746-7211

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.
 

Monday, November 16, 2015

Applying for a Mortgage After Bankruptcy: 5 Steps

Declaring bankruptcy can be devastating and put a damper on your plans of purchasing a home at the Lake of the Ozarks. However, with some time and money, it is possible to apply for a mortgage after bankruptcy. With proper preparation, patience and financial planning, you might be able to purchase a home sooner than you think. While a personal bankruptcy will stand out on your credit report for as long as 10 years, the barrier it creates in obtaining a mortgage doesn't have to last that long. Follow these steps for applying for a mortgage after you've declared bankruptcy:

1. Be Patient. 


First of all, you will have to wait until your bankruptcy is discharged before you can do anything in regards to applying for a mortgage. The mandatory waiting periods to apply for a mortgage backed by Fannie Mae or the Federal Housing Administration last from two to four years. Within that period though, you need to work on getting a few things in order. Immediately after your bankruptcy case is discharged, you need to stop and take a look at where you are financially. Know exactly how much income you have and what your necessary living expenses are. You have to have a tight lease on your discretionary income in order to move forward in purchasing a home. In addition, make sure you pay every one of your bills on time, every time. Now is also the time to scrutinize your credit report. If there are debts that have been paid back, but still appear on your credit report, contact the credit agency to have them removed. 

2. Save Money. 


Once you have a budget established and that budget is under control, you need to start saving money. You need to build up an emergency fund, as well as establish enough money for a down payment and other upfront expenses that come with buying a home. While down payment requirements have significantly decreased, it's best to have about 20% of the cost of the home saved for a down payment. Not only will that 20% down payment reduce your total loan amount and the monthly payment amount, but it will show the lender that you're invested in the home and assures that you won't walk away from it if/when hard times come again. By saving your excess money each month, you'll get in the habit of being able to make your mortgage payments or covering those unexpected expenses of home ownership.    

3. Make a Plan. 


Owning your own home is not cheap. As a homeowner, you'll be responsible for fixing everything. Home maintenance is a big expense for every homeowner. When making your plan, keep in mind that there is more to owning a home than just sending in a mortgage payment every month. Besides electricity, water and sewer, you'll have to pay property taxes and insurance. Consider the cost of services such as landscaping, snow removal, and pest control. Then don't forget about the unexpected services such as a plumber or HVAC repairman. Make sure you have a long term plan for how you are going to afford your own home. There's a lot to think about when deciding to buy a home.

4. Prepare Your Documents. 


Now is the time to start getting your financial documents organized. While applying for a mortgage is not quite as detailed as filing for bankruptcy, similar records are required for most applications. Being organized shows that you're paying attention to detail and doing everything you can to get everything back on track after the unfortunate circumstances. Find out in advance what documents your Lake of the Ozarks mortgage lender requires and have them ready for your meeting. There's nothing worse than having your loan delayed because of a missing document, after you've already waited so long to get to this point.

5. Applying for a Mortgage. 


When you actually do apply for your mortgage, the process will be the same as if you hadn't filed bankruptcy. The only real difference is that your financial situation may not look the best. If you're coming off a recent bankruptcy, be prepared for slightly higher interest rates than those offered to others. More important than interest rate though, you need to be aware of the upfront charges you will be required to either pay or have rolled into your loan amount. If you properly prepared during the previous steps, you should know how much you can afford and will be able to make the best decision.

Going through bankruptcy is not ideal, but it doesn't mean you can't pick yourself back up and move forward. As your mortgage lender at the Lake of the Ozarks, I am here to help you through the process of applying for a home loan. I will work with you every step of the way, offering the first class service you deserve. Contact me today at 573-746-7211 for more information about Lake of the Ozarks home loans.

For Lake area news, resources and tips on financial services, please 


Michael Lasson
Sr. Residential Mortgage Lender
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049

Direct:  (573) 746-7211

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Tuesday, November 10, 2015

15-Year Fixed Rate Mortgage vs. 30-Year

When choosing to finance a new home at the Lake of the Ozarks, you will have several different decisions to make. One of those decisions will be the length of the term for the loan. The mortgage's "term" refers to the number of years that you will spend paying off the loan. You have two basic options for length of term to choose from: a 15-year term or a 30-year term. Let's take a look at the pros and cons of each type:

30-Year Fixed Rate Mortgage 


The 30-year fixed rate mortgage is the most popular, as it allows for lower monthly payments on the same loan amount. This means that if you know how much you can afford each month for a house payment, you can borrow more money to get a more expensive house by choosing a 30-year fixed rate mortgage. However, since you get more time to pay off the loan, there is a cost.

PROS: 
  • Lower monthly mortgage payments  
  • Easier to qualify 
  • Ability to buy more with a smaller payment 
  • Can always pay extra if you want 
  • Good for those looking to invest money elsewhere

CONS: 
  • More total interest over the life of the loan
  • Higher interest rate 
  • Build home equity very slowly 
  • Harder to refinance
  • You won't own your home outright for 30 years

15-Year Fixed Rate Mortgage 


While 30-year terms may be more popular, a 15-year fixed rate mortgage offers the best value. If you can afford to make higher monthly payments, this would be the better option in terms of saving money in the long term. This type of mortgage is also harder to qualify for as you're required to pay a substantially higher amount each month. Therefore, for some borrowers, this option may not even be a possibility.  

PROS: 
  • Less total interest over the life of the loan.
  • Lower interest rate 
  • Build home equity faster 
  • Own your home free and clear in half the time 
  • Good for those close to retirement and/or conservative investors

CONS: 
  • Higher monthly mortgage payments 
  • Harder to qualify 
  • May not be able to buy as much house as you want 
  • You may have all your money locked up in your house 
  • You could get a better return for your money elsewhere

Things to Consider



Mortgages aren't one size fits all. There are several things to consider when choosing the terms for your Lake of the Ozarks home loan

1. What can you afford?  

The monthly mortgage payment on a 30-year term will typically work out to be several hundred dollars less than the payment of a 15-year term. If you can't comfortably make the payments on a 15-year mortgage, then the 30-year term is the better option for you. You can always make extra payments when possible to pay it off faster, but you won't be locked into a price you can't afford each month.

2. How much do you have in your emergency fund? 

Once you choose the type of loan you're going to get, you'll be expected to pay that set amount each month. If you choose to go with the higher payment option in order to save money in the long run, your savings account needs to have enough money to cover you if something unexpected happens such as losing your job. If you don't have much in terms of an emergency fund, you're better off going with the 30-year fixed mortgage and building your savings with any extra money you have.

3. How do you feel about debt? 

Many people are strongly adverse to debt of any kind. Managing debt isn't easy and for many people staying out of debt completely is the way to go. It comes down to your appetite for risk. By choosing the 30-year fixed rate mortgage, your risk of not being able to make your payments is lower, but you will be in debt for a longer period of time.

4. What kind of personal discipline do you have? 

If you can afford the payments on a 15-year loan, but you’re concerned about the possibility of job loss or other major financial hits, you might be hesitant to commit to the higher payments. In that case, the better option might be the 30-year fixed rate mortgage. You can actually pay it off in 15 years if you want, but it will require strong personal discipline. Many people find it hard to pay extra on their mortgage at the Lake of the Ozarks when it's not mandated by the bank. According to the Federal Deposit Insurance Corporation (FDIC), 97.3 percent of people do not consistently pay extra on their mortgages. What the statistic doesn't show though, is how many of those people would have fallen behind on their mortgages had they been locked into a higher payment with the 15-year fixed rate mortgage.

5. What about the tax breaks? 

While a 30-year mortgage does offer more of a tax break, the reason is because you're paying significantly more in interest. For that reason, the tax breaks shouldn't be your only consideration when choosing the term for your mortgage loan. In the end, it all comes down to your personal financial situation to determine what term best suits your individual needs and ability.

To discuss the best loan options for your unique situation, give your Lake of the Ozarks mortgage lender a call at 573-746-7211. When it comes to your financing needs, I'm committed to working with you every step of the way. I'll discuss financing options, offer competitive interest rates and back it up with the first class service you deserve.

For Lake area news, resources and tips on financial services, please 


Michael Lasson
Sr. Residential Mortgage Lender
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049

Direct:  (573) 746-7211

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Friday, November 6, 2015

6 Factors that Influence Your Home Loan Interest Rate

You've heard that interest rates are at historically low levels. However, what exactly is that interest rate going to be when you walk in to apply for a Lake of the Ozarks mortgage loan? It's hard to say an exact rate because the numbers differ based on the person and the situation. Let's take a look at the different factors that will affect your interest rate.

1. Credit Score.


Your credit score is the best indicator how reliable you'll be in paying off your loan. It takes into account your payment history, amounts owed, types and length of credit, and new credit inquiries. Generally, the higher the credit score you have, the better the rate you'll qualify for.

2. Downpayment Amount.


The larger the amount you choose to pay upfront on your home will not only decrease the amount of the loan, but can also help you get a better interest rate. Mortgage lenders at the Lake of the Ozarks see less of a risk when you're more invested in the property.  

3. Property Type.


The type of property you're purchasing, including size and location, will also have an affect on the interest rates you're offered. Lake of the Ozarks homes are often second homes or vacation homes for many people, and therefore, that rate will be different than if the home were going to be your primary residence. 

4. Loan Type and Term.  


Rates can vary depending on the type of loan that you choose, such as Conventional, FHA, VA, USDA, etc. In addition, the term of your loan can also impact the rate. While 30-year mortgages are the most typical, choosing a 15-year mortgage could get you a lower rate. This would also lower your overall costs, but you would be making higher monthly payments.  

5. Home Price and Loan Amount.  


The price of the home minus the amount of your down payment will determine the loan amount or the amount you will need to borrow. Typically, your rate will be higher if you're taking out a particularly small or a particularly high loan.

6. Interest Rate Type. 


There are two basic types of interest rates: fixed and adjustable. Fixed rates never change throughout the life of the loan. Adjustable rates will start at a fixed rate for a period of time and then can increase or decrease depending on the market. You can typically get a better initial rate on adjustable rate mortgages, however, you then risk the chance of it increasing significantly over the life of the loan. 

When it comes to your financing needs, your Lake of the Ozarks mortgage lender is committed to working with you every step of the way. I'll discuss financing options, offer competitive interest rates and back it up with the first class service you deserve. Give me a call at 573-746-7211 for more information on getting in on these low interest rates and applying for a home loan at the Lake of the Ozarks today!

For Lake area news, resources and tips on financial services, please 


Michael Lasson
Sr. Residential Mortgage Lender
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049

Direct:  (573) 746-7211

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.