Credit ScoreYour credit score is going to be one of the best indicators of how reliable you will be in paying off your loan. It will take into account your payment history, amounts owed, types and length of credit, and new credit inquiries. A good rule of thumb is that the higher the credit score, the better rate you’ll qualify for.
The Downpayment AmountThe 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.
The Type of PropertyThe type of property you're purchasing will also have an effect on the interest rates you're offered. A condominium unit or investment property will sometimes have a higher interest rate than a single family residence or primary/second home will.
The Loan Type & TermRates can vary depending on the type of loan that you choose, such as Conventional, FHA, VA, USDA, etc. Also, the term of your loan can 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.
Loan Amount & Home PriceThe 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.
The Interest Rate TypeThere 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 some 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.
Ready to Buy a Home?Team Lasson is here to help with all of your mortgage needs. From buying a primary residence to a second home at the Lake of the Ozarks, we would consider it an honor to walk through the process with you. Now has proven to be an excellent time to buy a home, so if you’ve had a lakefront home at the Lake of the Ozarks on your bucket list NOW is the time to get started! Visit our website (www.YourLakeLoan.com) to submit your application - we look forward to assisting you!
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Senior Loan Officer
NMLS #: 493712
4655 B Osage Beach Parkway
Osage Beach, MO 65065
**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.