Wednesday, June 10, 2020

Important Aspects of Interest Rates

Interest rates can seem a bit mysterious. It is an illustrious number that is created based on carefully curated aspects of your life. The interest rate can hold a huge weight, as it determines how much money you will be spending on your loan over the lifetime of it. Team Lasson believes that this is truly the best time to secure a loan or refinance your home. So we are covering a few aspects of interest rates that you may find very interesting.

Interest Rates Can Be Volatile

The thing about interest rates is that at any given point in the year, they can be high or low. This means that when the rates are low, you will want to take advantage of them! Within a loan that you already have, your interest rate will stay the same, so long as you do not have an adjustable-rate mortgage (ARM).

Mortgages All Around

What makes mortgages so interesting is how many people have them. Having a home mortgage is not limited to certain classes or to people who only make a specific amount of money. In fact, it may surprise you to find out that even the very wealthy people still get mortgages on their homes.

Income vs. Assets

It may be surprising, but the money that you make every month is more important than your assets. Obviously, having money in the bank can be a very helpful asset when buying a home, but when lenders are looking at the details that make up your financial situation, the monthly income is considered more stable than having assets.

Fun Facts About Mortgages

1. It was 1968, and mortgage rates were over 8.5%. For perspective, right now, a good average is in the 3.5% range (maybe a little higher or lower depending on factors). However, through 1967, the rates went down to 7% and homeowners were able to buy a home that was 15-20% larger for the same monthly payment!

2. As if the 60’s interest rates did not seem crazy enough, in 1981, mortgage rates reached 18.63%! If you are curious how that affected a monthly payment, a $300,000 home with a 30-year mortgage would be approximately $4,676 a month compared to roughly $1,347 a month now for that same property.

The average mortgage rate for the past 50 years is just over 8%, which is making the interest rates of today look REALLY good.

Getting a New Mortgage or Refinancing

If you have been thinking about refinancing your home or purchasing a vacation home at Lake of the Ozarks, there truly is no time like the present. We have been busy keeping up with the current demand as so many are trying to secure the best interest rates they can, but we cannot imagine doing anything else!We are so honored to be serving Lake of the Ozarks with our mortgage services, as well as assisting home buyers on their journey to buying a new home. Visit our website to learn more about us, as well as fill out an application to get started. We can get a pre-approval ready for you, and this will make the home buying process so much easier. We look forward to welcoming you home!

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

Michael Lasson
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.

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