4 Facts About Mortgage Interest Tax Deductions

Tax time is upon us and you only have one month left to get them done! When preparing your taxes, be sure to look for any deductions that you may be able to take. As your Lake of the Ozarks mortgage lender, I want to make sure you're aware of the tax deductions related to your mortgage that you may be eligible for. Take a look at these 4 things you need to know about mortgage interest tax deductions.

1. Deducting Mortgage Interest is Not for Everyone. 

The majority of American taxpayers don't itemize their deductions. They just claim their standard allowance and move on. The numbers show that many, maybe even most, homeowners don't deduct their mortgage loan interest. While that may sound crazy to some, for those homeowners with lower to average incomes, it may actually make sense not to itemize. The advantages of itemizing seem to increase with wealth. Make sure that it makes sense for you to itemize your deductions before deciding to do so on your own taxes.

2. Deducting for Two Mortgages. 

That vacation home at the Lake you've been dreaming of may be more affordable than you think. You might be able to take deductions for two mortgage loans. You can still qualify even if it's a timeshare and/or you rent it out for most of the year.  There are some key rules when doing this though. First, for tax purposes, you're only allowed to designate one property as your main home and the other as your second home. If you rent out the second one, you must spend at least 10% of the rental days each year living in it yourself. If you don't rent it out however, you don't have to spend any time there. Talk to your mortgage lender at the Lake of the Ozarks to see if this is an option for you.

3. Deducting Your Mortgage Points. 

When obtaining a mortgage loan at the Lake of the Ozarks, you incur a few more costs than just the actual loan amount. Some of these extra costs are usually deductible as well. There are two categories: mortgage loan origination fees and maximum loan charges, and loan discount or discount points. Sometimes points can be deducted in full during the year you make your purchase. However, the IRS lists 9 rules to comply with in order for that to happen. If you can't meet those requirements, your points deductions will be spread out over the life of the loan. 

4. Deducting Mortgage Insurance Premiums. 

In some cases, you can even deduct your mortgage insurance premiums. The IRS regards qualified mortgage insurance premiums as home loan interest, making it typically deductible. This is provided that your mortgage insurance contract is dated after a certain date and your income is below a certain level. Check the IRS website for updated numbers on the tax year you're filing for. Funding fees on VA mortgages and guaranteed fees on Rural Housing Service loans also count as mortgage insurance premiums and can be taken into account for your deduction. 

If you're considering itemizing your taxes to take advantage of these homeowner deductions, give me a call at 573-746-7211 with any questions about your personal mortgage situation. When it comes to your home financing needs, I am committed to working with you every step of the way! 

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

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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

Cell: (573) 216-7258

Fax:(573) 693-9141

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.

The First State Bank Mortgage Checklist

Securing a mortgage at the Lake of the Ozarks requires some planning and organization. Use this checklist from First State Bank Mortgage to get started gathering information that will need to be provided to your Lake of the Ozarks mortgage lender during the home loan process.

Mortgage Checklist  

While some of these items may not apply to you, the following may be required to secure your home loan at the Lake of the Ozarks. To speed along your loan process, start collecting these items now.

• Current Driver's License or ID 
• Copy of the Trust Papers (if you want your property held in a trust) 
• Copy of Accepted Contract (signed by both the buyers and sellers)
• Copy of Earnest Money Check   
• Check for Application Fee (covers appraisal and credit report fees) 
• Present Employer's Name, Address & Phone Number as well as,
• Length of Employment, Position & Salary (if employed less than 2 years, please provide the previous employers' info for the past 2 years)
• Most Recent 2 Years' W-2 Forms
• Current Paycheck Stub (reflecting year-to-date income of 30 days or more)
• If you are self employed, have been paid any commission, or have received any business income, bring documentation: copies of your federal tax returns along with all schedules and W-2s for the past two years,  including corporate or partnership returns, if applicable, for your business.  Also include a year-to-date P & L statement.
• Verification of Other Income Needed to Qualify (such as retirement, rental, interest or dividend income, as well as social security or pension income)
• Last Two Months' Bank Statement for all accounts (provide explanations of any deposits larger than normal paycheck)

 

If Applicable: 

• Past Three Years' Federal Tax Returns (if applying for MHDC grant) 
• Accepted Offer to Purchase or Copy of Listing Contract (for any property you have for sale) 
• Address, Name of Mortgage Lender, Mortgage Statement and Lease Agreement (for any investment property you own)  
• Evidence of Child Support Payments (for the last 12 months, if applicable, along with divorce decree and court order)
• Divorce Decree Order (or any other financial obligation incurred through court order) 
• Copy of Judgement or Bankruptcy Discharge and Petition (with letter of explanation) 
• Certificate of Eligibility & Copy of DD 214 (for VA Loans) 

Talk to the best mortgage lender at the Lake of the Ozarks regarding any questions about documentation for your Lake of the Ozarks home loan. 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. Give me a call today at 573-746-7211. 

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

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

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.

What is an Escrow Account?

You've probably heard the word escrow before, but if you're a first-time home buyer, you might not know what it means. Your Lake of the Ozarks mortgage lender is here to help you understand everything there is to know about the mortgage process, including the escrow account. Let's take a look at what an escrow account is and the benefits of having one.

What is Escrow? 

In some situations, a "close of escrow" can refer to the close of a real estate transaction. However, when it comes to mortgages, the word escrow means something different. In our case, escrow refers to the account that is used to pay a homeowner's property taxes and hazard insurance. Each month, you send your lender 1/12 of the annual amount due for your property tax and insurance along with your mortgage payments. This breaks those payments up so you don't have to come up with the entire amount at once. When the bill comes due, your mortgage lender will pay the amount for you.

Benefits of an Escrow Account 

There are many benefits to having an escrow account. In general, it makes everything easier on both the lender and the homeowner. Let's take a look at a few of the benefits:

1. Lower Mortgage Rate - By having an escrow account, it's less likely that your home's tax bill won't get paid and your insurance coverage lapse. The lender doesn't have to worry about a seizure on the property from tax authorities. In addition, they don't have to worry about losses due to property damage because of inadequate coverage. Due to the fact that the lender is able to assume less risk in this situation, you can often get a lower interest rate. 
2. One Less Bill You Pay - Having an escrow account makes your life simpler too. Instead of managing your real estate taxes  and hazard insurance bills on your own, your mortgage lender at Lake of the Ozarks will pay it for you on your behalf. You don't have to worry about keeping track of another bill or paying it on time. 
3. Easier to Budget - Escrow accounts can also make it easier to budget. Instead of making a large payment once a year, you are able to break the payments down into monthly segments. The money is then saved for you until the bill is due. It's a lot easier to create a budget when you have regular monthly payments without sporadic large payments.  
4. No Large Bills - Which is easier: paying a couple thousand dollars at once or splitting that cost up across 12 different months? You might say either way you are paying the same amount. While this is true, I think we could all agree that smaller more manageable payments is a good way to go (unless you're just super good at saving money on your own). If you wait until the end, you might have spent more throughout the other months that you could have saved to put towards your mortgage payments.

In many cases, an escrow account is required with your mortgage loan at the Lake of the Ozarks. Be sure to talk to your lender to determine if an escrow account is a requirement for you. I am here for all of your Lake of the Ozarks home financing needs - feel free to give me a call at 573-746-7211 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

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

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.

Short Sale vs. Foreclosure

If a financial hardship situation puts you in a position of not being able to remain in your home any longer, you have two options: a short sale or a foreclosure. As your Lake of the Ozarks mortgage lender, my hope is that you don't find yourself in either of these situations. However, sometimes things happen and you can't make your mortgage payments like you thought you would be able to. Let's take a look at each of these options, their differences and what these situations mean for you as a homeowner or prospective homeowner in the future.

Short Sales

A "short sale" in real estate refers to a real estate transaction where the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens' full amounts. This can happen when you owe more on your loan than the home is worth and you need to sell it. You can only do a short sale if your lender approves it because they must agree to make less money than they're owed. To qualify for a short sale, you must prove financial hardship with documentation.  

Foreclosures 

A "foreclosure" is a property that has been taken over by the lending institution as a result of the mortgagor's failure to keep up on the mortgage payments. If you're in financial hardship situation and stop making your payments, a foreclosure will be the ultimate result. When you miss a payment it's called default. After a period of no payments, your lender will begin the foreclosure process. When this happens, the homeowner's rights to the property are forfeited. If the homeowner cannot pay off the outstanding debt or sell it via short sale, the home goes to a foreclosure auction. If the property does not sell at auction, it becomes the property of the lending institution.   

What Does It Mean For You? 

In either situation, your credit score will be affected and it could be harder to secure a mortgage loan in the future. A short sale will cause your credit score to drop as little as 50 points if you don't incur any late mortgage payments during the short sale process, or as much as 200 points if you do incur late payments. Getting a new home loan after a short sale can happen in as little as 2 years if you can put down 20 percent. In a foreclosure, your credit score can drop 200 to 400 points. A foreclosure hits your credit harder than a short sale because you have to accrue late mortgage payments on your way to foreclosure. It can take up to 7 years to get a new home loan after a foreclosure, but it can be significantly shorter if your hardship was beyond your control, like a job loss.

If you're worried about being able to make your mortgage payments in the future, give me a call at 573-7467211 to talk about your options. There's a possibility we might be able to refinance your home at the Lake of the Ozarks to get your payments lower before you run into the issue of not being able to pay. 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 

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

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

Cell: (573) 216-7258

Fax:(573) 693-9141

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.

What is Negative Equity?

As you payoff your mortgage, you gain what is called home equity. Your home equity is the amount of your home that you actually own versus the amount that is financed. Unfortunately, that home equity amount isn't always positive. Your Lake of the Ozark mortgage lender wants to help you understand what negative equity is and how to deal with it.

Negative Equity

Your equity is ever changing, as your home's value fluctuates and as you pay down your mortgage loan. If your home's value drops below your outstanding loan balance, you end up with negative equity. Negative equity often occurs when a house is purchased with a mortgage and then the economy starts to slow or home prices start to drop. As of September 2015, the U.S. Negative Equity rate, the share of mortgaged homeowners that owe more on their home than it is worth, was at 13.4%. Understanding how these situations come about can help you make smart decisions when financing your home at the Lake of the Ozarks.

Causes of Negative Equity

Typically, a buyer will secure a home loan that is no more than 80% of the current value of the home being purchased. However, a number of factors can alter that loan to value ratio, sometimes making it exceed 100%. When this happens, the homeowner is said to have negative equity. The causes of negative home equity can either be the result of lending requirements that are too lenient or a change in the housing market. These causes of negative equity can include:

• Buying a home during a market peak, when prices are high and then dramatically drop
• Borrowing against the home with a home equity loan and then experiencing a decline in the market
• Securing a high-interest loan with minimal amounts applied towards loan principal
• Putting too minimal of a down payment on your home at the time of purchase

Problems That Come with Negative Equity

If you're wanting to sell your home, having a negative equity is a problem. Unless you're willing to take a loss and you have savings to pay the difference between what you owe and the value of your home, moving isn't going to be an option anytime soon. In addition, refinancing your home at the Lake of the Ozarks is most likely not an option, as most lenders will not let those homeowners with negative equity switch to a new mortgage deal.

Fortunately there are options for those homeowners that find themselves with negative equity, including government programs that offer homeowners some relief from this situation. If you think you may have landed yourself in a negative equity situation, contact the best mortgage lender at the Lake of the Ozarks. I'm here for all of your home financing needs and would be glad to answer any questions that you may have regarding a home loan at the Lake of the Ozarks.

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

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

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.

Enjoy a Delicious Valentine's Day Dinner at the Lake!

Valentine's Day is this weekend and what better way to celebrate than with a romantic dinner? The Lake of the Ozarks area is filled with many wonderful fine dining establishments, perfect for a Valentine's Day Dinner! The best part is that your favorite Lake of the Ozarks mortgage lender has found the best dinner deals happening this weekend! So pick up the phone and make your reservations at the beautiful Lake of the Ozarks today!

H. Toad's Valentine's Day Dinner

Indulge your sweetheart's senses this year by taking them to a decadent 4 course dinner at H. Toad's Bar & Grill. Dinner will be served February 13 from 5-9 PM. The menu includes a choice of Steak Neptune, Orange Dusted Halibut or Pan-Seared Duck Breast as the entree. Let your taste buds sizzle by viewing the entire menu here. Reserve your spot now by calling 573-365-5620.

Valentine's Day Dinner at The Trophy Room 

Spend Valentine's Day at The Trophy Room at Old Kinderhook! They will be handing out long stem roses to the ladies and offering 3 shareable menu features February 12th through 14th! Enjoy live music Friday, Saturday & Sunday.  Reservations are recommended - call 573-317-4314.

Valentine's Day Dinner at Seven Springs Winery

Seven Springs Winery is offering a Valentine's Day dinner on February 13 from 5-8 PM. The menu includes: a Caesar Salad, 10 oz. KC Strip Steak, 6 oz. Lobster Tail, Montego Bay Vegetable Medley, Garlic Mashed Potatoes and a Dark Chocolate Brownie covered in Spiced Raspberry Sauce. Tickets are $35 per person and reservations are recommended - call 573-317-0100 to reserve your spot for Valentine's Day weekend today!

JJ's at the Copper Pot's Valentine's Day Dinner

JJ's will be opening back up just in time for Valentine's Day weekend! Thursday through Sunday they will be offering a steak dinner for two. Reserve your table either online or by calling 573-374-8077.

Valentine's Day Dinner at The Lodge of Four Seasons

Enjoy dinner at HK's Restaurant, where you will be savoring a 4 course meal with your choice of the main entree being: Filet & Shrimp Dou, Chicken Marsala or Lemon Sole Roulade. Their Valentine's Day menu will be served February 13 & 14. They will also have live music on Saturday from 7-10 PM. Reservations are strongly recommended - call 888-265-5500 today. 

Happy Valentine's Day from your favorite Lake of the Ozarks mortgage lender! How would you like to spend every holiday at the beautiful Lake of the Ozarks? You can make that dream a reality by purchasing a second home at the Lake of the Ozarks. When you own a home here, you can come visit anytime you want! For all your Lake of the Ozarks mortgage needs, give me a call at 573-746-7211. 

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

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

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.

3 Things to Consider Before Refinancing Your Home

Have you considered refinancing your home? While it can be a great option for some people, it may not be the right choice for everyone. Here are a few things you'll want to consider before deciding if refinancing at the Lake of the Ozarks is the right move for you.

1. Reason for Refinancing

The main reason people choose to refinance their homes is to get a better deal. This could be in the form of a lower interest rate, lower monthly payments, or a shorter/longer loan period. You'll need to consider your personal reasons for wanting to refinance. Maybe it's to free up some cash to pay off higher interest loans such as a car payment. What goals do you want to accomplish through the refinancing process? Be sure to examine the pros and cons of refinancing your home before taking any action. You need to see if your timing and circumstances are right for refinancing. If your credit score has improved or your income has changed, you might be ready for a refinance.

2. Current Interest Rates

Interest rates are one of the main factors determining the cost of your mortgage at the Lake of the Ozarks. On average, a borrower that refinances their home reduces their interest rate by about 1.5 percentage points. That may not sound like much, but over the life of the loan it adds up. Keep in mind that published interest rates are only a guideline, as interest rates differ for each borrowers individual situation. Your credit score and intended loan type will influence the rate available to you.

3. Costs and Penalties Involved

Be careful that penalties don't eat up all that you're saving with your refinance. Some financial institutions charge hefty fees for paying off your loan early. These fees can make it unfeasible to refinance your home at the Lake of the Ozarks. Refinanced loans often incur "moving costs" such as legal fees, disbursement costs, new valuation costs and stamp duty. Make sure to check the numbers to see if you're actually saving money before you decide to go through with the refinance. You want your long-term savings with lower payments to outweigh the immediate costs of refinancing.

For all of your Lake of the Ozarks home financing needs, give me a call at 573-746-7211. I'm committed to working with you every step of they way. As your Lake of the Ozarks mortgage lender, I'll discuss the best options for your unique situation, 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 

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

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

Cell: (573) 216-7258

Fax:(573) 693-9141

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.