What Caused the Recent Home Price Increase?

Home prices continue to rise and even reached a record increase recently. That's the bottom line of a recent release of the S&P/Case-Shiller Index.

What happened? 

• The S&P/Case-Shiller 20-City Composite Index rose in April to beat expectations with a record 12.1 percent increase over the past 12 months. All 20 cities showed positive year-over-year returns for at least the fourth consecutive month. In addition, the following cities continued to show double-digit annual gains: Atlanta, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, Phoenix, Portland, San Diego, San Francisco, Seattle and Tampa. 

What is the S&P/Case-Shiller Index?

• The S&P/Case-Shiller Home Price Index is the leading measure for the U.S. residential housing market. The report tracks changes in the value of residential real estate both nationally as well as in 20 metropolitan regions. 

What does it mean?

• The overall trend looks good for the housing market and the economy as a whole, as home prices have continued their rise. However, it's important to remember that all markets are unique, which means each local housing market may have its own trend.  If you have specific questions, we can help you understand the Lake of the Ozarks Housing Market. That means now is a good time to not only keep an eye on the national trend, but also to reach out to your Lake of the Ozarks Mortgage Lender to answer your questions and help you make an informed decision about purchasing a home at Lake of the Ozarks.

We would love the opportunity to work with you on your Lake of the Ozarks Mortgage Loan or refinance.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!

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

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Michael Lasson

Sr. Residential Mortgage Lender

2140 Bagnell Dam Blvd, Suite 303B

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712

Is the Current Housing Market In Danger?

"Yet, through all the Gloom, I can see the Rays of ravishing Light and Glory." Those words that John Adams wrote to his wife Abigail are appropriate as we just celebrated our nation's birthday--and as the employment picture brightens with the latest Jobs Report.

Non-farm payrolls surged by 195,000 in June, well above the 166,000 expected, while the data for April and May was revised higher by 70,000. The Unemployment Rate remained at 7.6 percent in June, but the U6 number, which includes people who can only find part-time work or have become too discouraged to look for a job, rose to 14.3 percent.

For the first half of 2013, employers have added an average of 201,000 jobs each month as the labor markets continue to improve. The Fed is watching this number very closely and it will be a determining factor in how long they continue their Bond purchase program known as Quantitative Easing.

The housing market is another key factor in this decision and the good news continues in that sector as well. Last week, research firm CoreLogic reported that home prices, including distressed sales, rose by 12.2 percent in May 2013 compared to May 2012. This is the biggest annual gain since February 2006. However, prices are 20.4 percent below the peak set back in April 2006. Tight inventories and historically attractive home loan rates have been the fuel behind the rise.

What does all of this mean for home loan rates?

Remember that the Fed's Bond purchase program has helped Bonds and Lake of the Ozarks home loan rates remain attractive. But if the housing and labor markets continue to improve, the Fed could consider tapering their purchases sooner rather than later. However, just the talk of potentially tapering these purchases has led to increased volatility in the markets, causing Mortgage Bonds and home loan rates to worsen recently. This is an important story to monitor in the weeks ahead.

The bottom line is that now remains a great time to consider a purchasing a Lake of the Ozarks Home or Lake of the Ozarks Refinance, as home loan rates remain attractive compared to historical levels.

We would love the opportunity to work with you on your Lake of the Ozarks Mortgage Loan or refinance.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!

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

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

2140 Bagnell Dam Blvd, Suite 303B

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712

How is your Credit Score Determined?

When it comes to getting a Lake of the Ozarks home loan, one of the biggest determining factors is your Credit Score.   There is a lot of confusion about what a credit score is and how it is determined.  Here are a few things that are considered when your credit score is determined.

Your credit score is usually based on the answers to these questions:

1. Do you pay your bills on time? The answer to this question is very important. If you have paid bills late, have had an account referred to a collection agency, or have ever declared bankruptcy, this history will negatively impact your score.
2. What is your outstanding debt? Many scoring models compare the amount of debt you have and your credit limits. If the amount you owe is close to your credit limit, it is likely to have a negative effect on your score.
3. How long is your credit history? A short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances.
4. Have you applied for new credit recently? If you have applied for too many new accounts recently, that may negatively affect your score. However, if you request a copy of your own credit report, or if creditors are monitoring your account or looking at credit reports to make prescreened credit offers, these inquiries about your credit history are not counted as applications for credit.
5. How many and what types of credit accounts do you have? Many credit-scoring models consider the number and type of credit accounts you have. A mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score.

**Information taken from http://www.federalreserve.gov/consumerinfo/fivetips_creditscore.htm

We would love the opportunity to work with you to help determine your credit score and give you some ideas on how to improve your score.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com.

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

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

2140 Bagnell Dam Blvd, Suite 303B

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712

Understanding the Terms Associated with Closing on your Lake of the Ozarks Home

For the past two weeks we have been covering some terms that we think will be helpful to you as your go through the process of getting a Lake of the Ozarks Mortgage Loan.  Understanding the following terms will not only build your confidence, but it will also create a smoother process for you and your Lake of the Ozarks Mortgage Lender!  

• Appraisal - A written analysis prepared by a qualified appraiser and estimating the value of a property.
• Appraised Value - An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.
• Closing - A meeting held to finalize the sale of a property. The buyer signs the mortgage documents and pays closing costs. Also called "settlement."
• Closing Costs - These are expenses - over and above the price of the property- that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the area country and the lenders used.
• Down Payment - Part of the purchase price of a property that is paid in cash and not financed with a mortgage.
• Equity - The amount of financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on the mortgage.
• Interest - The fee charged for borrowing money.
• Lock-In Period - The guarantee of an interest rate for a specified period of time by a lender, including loan term and points, if any, to be paid at closing. Short term locks (under 21 days), are usually available after lender loan approval only. However, many lenders may permit a borrower to lock a loan for 30 days or more prior to submission of the loan application.
• Origination Fee - A fee paid to a lender for processing a loan application. The origination fee is stated in the form of points. One point is 1 percent of the mortgage amount.
• Points - A point is equal to one percent of the principal amount of your mortgage. For example, if you get a mortgage for $165,000 one point means $1,650 to the lender.Points usually are collected at closing and may be paid by the borrower or the home seller, or may be split between them.
• Pre-Approval - The process of determining how much money you will be eligible to borrow before you apply for a loan.
• Principal - The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage.
• Private Mortgage Insurance (PMI) - Mortgage insurance provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require MI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.

We realize that you may need additional information and we would love to help you understand the process of getting a Loan for you Lake of the Ozarks Home!  Please give us a call and we can set up a time to speak with you!  You can call me direct at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com.

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

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

2140 Bagnell Dam Blvd, Suite 303B

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712

Understanding the Terms Related to Your Current Financial Status

This is our second blog in a series about Understanding the Mortgage Terms when buying a home.   If you are currently in the process of getting a Lake of the Ozarks Mortgage, you will be introduced to a whole new world of financial terms that you may or may not understand.

This week we are going to focus on terms that are directly related to your current financial status.  

• Asset - Anything owned of monetary value including real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, etc.).
• Balance Sheet - A financial statement that shows assets, liabilities, and net worth as of a specific date.
• Before-tax Income - Income before taxes are deducted.
• Credit Report - A report detailing an individual's credit history that is prepared by a credit bureau and used by a lender to determine a loan applicant's creditworthiness.
• Credit Risk Score - A credit score measures a consumer's credit risk relative to the rest of the U.S. population, based on the individual's credit usage history. The credit score most widely used by lenders is the FICO® score, developed by Fair, Issac and Company. This 3-digit number, ranging from 300 to 850, is calculated by a mathematical equation that evaluates many types of information that are on your credit report. Higher FICO® scores represents lower credit risks, which typically equate to better loan terms. In general, credit scores are critical in the mortgage loan underwriting process.
• Liquid Asset - A cash asset or an asset that is easily converted into cash.
• Net Worth - The value of all of a person's assets, including cash.
• Non Liquid Asset - An asset that cannot easily be converted into cash.
• Total Expense Ratio - Total obligations as a percentage of gross monthly income including monthly housing expenses plus other monthly debts.

We realize that you may need additional information and we would love to help you understand the process of getting a Loan for you Lake of the Ozarks Home!  Please give us a call and we can set up a time to speak with you!  You can call me direct at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com.

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

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

2140 Bagnell Dam Blvd, Suite 303B

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712

Understanding Mortgage Terms when you are Purchasing your Lake of the Ozarks Home!

Purchasing a Lake of the Ozarks home will likely be one of your largest financial transaction, so it's important to make sure you understand the terms and information that you will hear from your Realtor, Lake Ozark Mortgage Lender and Title Company.

Over the next few weeks, we are doing a series of blogs to help you understand some of these terms that you may hear but not completely understand.  This week we are specifically looking at Mortgage Terms.

• 2/1 Buy Down Mortgage - The 2/1 Buy Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long term rates; however, even keeping the loan in place for three full years or more will keep their average interest rate in line with the original market conditions.
• Adjustable-Rate Mortgage (ARM) - A mortgage with an interest rate that changes during the life of the loan according to movements in an index rate. Sometimes called AMLs (adjustable mortgage loans) or VRMs (variable-rate mortgages)
• Balloon Mortgage - A mortgage with level monthly payments that amortizes over a stated term but also requires that a lump sum payment be paid at the end of an earlier specified term.
• First Mortgage -The primary lien against a property.
• Fixed-Rate Mortgage (FRM) - A mortgage interest that are fixed throughout the entire term of the loan.
• Growing-Equity Mortgage (GEM) - A fixed-rate mortgage that provides scheduled payment increases over an established period of time. The increased amount of the monthly payment is applied directly toward reducing the remaining balance of the mortgage.
• Guarantee Mortgage - A mortgage that is guaranteed by a third party.
• Mortgage - A legal document that pledges a property to the lender as security for payment of a debt.
• Mortgagor - The borrower in a mortgage agreement.
• Step-Rate Mortgage - A mortgage that allows for the interest rate to increase according to a specified schedule (i.e., seven years), resulting in increased payments as well. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan.
• Two-step Mortgage - An adjustable-rate mortgage (ARM) with one interest rate for the first five or seven years of its mortgage term and a different interest rate for the remainder of the amortization term.
• VA Mortgage - A mortgage that is guaranteed by the Department of Veterans Affairs (VA). Also known as a government mortgage.
• "Wrap Around" Mortgage - A mortgage that includes the remaining balance on an existing first mortgage plus an additional amount requested by the mortgagor. Full payments on both mortgages are made to the "Wrap Around" mortgagee, who then forwards the payments on the first mortgage to the first mortgagee. These mortgages may not be allowed by the first mortgage holder, and if discovered, could be subject to a demand for full payment.

We realize that you may need additional information and we would love to help you understand the process of getting a Loan for you Lake of the Ozarks Home!  Please give us a call and we can set up a time to speak with you!  You can call me direct at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com.

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

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

2140 Bagnell Dam Blvd, Suite 303B

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712

First State Mortgage Team will Host the Business Journal

Thursday June 13, 2013 your First State Bank Mortgage Team will be sponsoring the Business Journal Social!!!  

If you're local business at the Lake of the Ozarks, this is the perfect time to enjoy an evening of networking and socializing.  The event brings together a large group of business people from the Lake of the Ozarks in an informal atmosphere for business, beverage of your choice and appetizers, courtesy of the First State Bank Mortgage Team!!  

Be sure to come out and say Hi and enjoy a great evening and door prizes.

Where:  Lil Rizzo'z at the Outlet Mall in Osage Beach
When:  June 13th 4-7

We invite you to come out and say Hi and enjoy some appetizers on us!!  We look forward to seeing you there!

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

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

2140 Bagnell Dam Blvd, Suite 303B

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712