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Thursday, September 24, 2015

The Pros and Cons of Taking Out a Second Mortgage

As a homeowner, you most likely already have a mortgage that you're currently paying. If you've been paying on it for awhile, you've probably built up some equity in your home. If so, you now have the option of taking out a second mortgage at the Lake of the Ozarks. Taking out a second mortgage definitely has some financial benefits, but those don't come without risks to you and your property. As your Lake of the Ozarks mortgage lender, I'm here to make sure you know the pros and cons of taking out a second mortgage before making the decision.

What is a Second Mortgage? 


Basically, a second mortgage is using your home equity as collateral for a loan. Banks and lenders typically call this a home equity loan. The amount you are able to borrow on your home will depend on how much equity is in your home. This is calculated by estimating the market value of the property and subtracting the payments made towards your first loan so far.

Why Get a Second Mortgage? 


A second mortgage can be used for anything from funding a child's education to making repairs on your home. Some people even use the cash to start a business. However, if you are going to take on additional debt, it should be for something worthwhile. For example, you probably don't want to take out a second mortgage to go on vacation. Those types of purchases are better to slowly save up for. Another option for taking out a second mortgage could be to avoid Private Mortgage Insurance.

The Pros


1. Tax Deductions - Mortgage interest of up to $100,000 of the principal for married couples and $50,000 for singles is deductible on your tax return.

2. Liquidation of Equity - By taking out a second mortgage, you have the ability to liquidate the equity in your home. If you're on the verge of bankruptcy, you can get access to cash in order to pay off high interest loans and back taxes.

3. Lower Interest - The interest payable on a home equity loan is usually lower compared to that of personal loans or credit cards, because it offers the lender the security of your house.

The Cons 


1. Puts House at Risk - While a second mortgage does provide you with the cash you want, it comes at the cost of putting your house up for grabs in the event that you cannot make the payments.

 2. Upfront Fees - In order to take out a second mortgage, you have to pay for an appraisal on your home, loan origination fee and other legal fees associated with an ordinary loan. Although there is a lower rate of interest, there are other costs to consider.

3. Debt Management - A second mortgage is not the answer for everyone trying to get out of debt, especially those that have a rough time managing debt. You have to fix the root of the problem first; just trading out one type of debt for another isn't going to help.

If you're considering a second mortgage or even just a first mortgage at the Lake of the Ozarks, give me 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 different options, offer competitive interest rates and back it up with the 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.
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Thursday, September 17, 2015

Closing Costs: The 411

You've decided to purchase a new home and now it's time to think about how much money you'll need upfront to make it happen. When you get a mortgage at the Lake of the Ozarks, you will need to pay fees charged by lenders and third parties related to the purchase of the home. These fees are in addition to the down payment. Here's the 411 on these "closing costs":

What are Closing Costs? 


Fees paid at the closing of a real estate transaction are called closing costs. The closing is when the title to the property is conveyed to the buyer. These costs can be incurred by either the buyer or the seller, but are typically paid by the buyer. They typically range from 2-5%  of the purchase price.

What Fees Make Up the Closing Costs? 


Depending on where you live and the type of property you buy, the closing costs can vary widely. However, closing costs will often include the following:
  • Credit Check Fee
  • Loan Origination Fee (charged by lenders for processing the paperwork) 
  • Attorney's Fees
  • Inspection Fees
  • Discount Points (fees you pay to lower your interest rate) 
  • Appraisal Fee
  • Survey Fee (covers the cost of verifying property lines)
  • Title Insurance (protects the lender in case the title isn't clean)
  • Title Search Fees (pays for background check on the title the make sure there are no unpaid mortgages or tax liens on the property)
  • Escrow Deposit
  • Pest Inspection Fee
  • Recording Fee (paid to a city or county to record the new land records) 
  • Underwriting Fee (covers the cost of evaluating a mortgage loan application) 

The "Good Faith Estimate"


Within 3 days of applying for a loan, your lender is required by law to provide you with a "good faith estimate" (GFE) of what the closing costs on your home will be. However, these are just an estimate and many of the fees listed on the GFE can legally change by up to 10%. Within a day of your closing, the lender should give you a HUD-1 settlement statement, which will outline the final closing costs. You can then compare this to your GFE and ask for an explanation on any changes.

When it comes to your financing needs, I'm committed to working with you every step of the way. If you're planning on buying a home at the Lake of the Ozarks in the near future, give our office a call at 573-746-7211. As your Lake of the Ozarks mortgage lender, 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.

at No comments:

Wednesday, September 9, 2015

Buying a Home vs. Renting One

Since the financial crisis in 2008, prospective homeowners are looking more closely at the costs and benefits buying a home. However, the drive to become a homeowner is still very strong. While homeownership may make sense financially, there are an assortment of social and family reasons that also come into play. When deciding whether or not homeownership is right for you, consider these points:

REASONS TO BUY


1. Equity 


When you're renting, you are helping your landlord gain equity in the property. On the other hand, if you have a mortgage at the Lake of the Ozarks, you're increasing your own equity.  If you intend to stay in the same home for at least 5-7 years, the costs of purchasing it are more likely to be offset by accrued equity and increase housing value. Plus, you can refinance your home mortgage if more favorable rates become available.

2. Tax Deductions


When tax times rolls around, owning your own home has its benefits. You can deduct both mortgage interest, as well as your property taxes. Also, if you work from home you may be eligible to take deductions for a home office and portions of utilities. 

3. Freedom


When you own your own home, you have the freedom to do whatever you wish to it. You can hang as many photos on the walls as you want. You can paint the walls any colors that you want. You can even remodel an entire room, knocking down walls and installing new appliances. You don't have to ask your landlord's permission before making changes to your space.

4. Maintenance


Maintenance can be considered both a pro and a con when it comes to owning your own home. On the one hand, you have the freedom of fixing the issue yourself or hiring a family friend if you want. If you're renting, the landlord makes the decision on who fixes it and its on their terms. You may have to pay a monthly fee for maintenance work when you rent, but when you own your own home you have to pay for any and all maintenance issues that arise.

REASONS TO RENT


1. Flexibility 


Do you know where you want to live on a long-term basis? Renting allows you to "try out" an area before committing to it. Unless you are certain about where you want to live, you might want to take some time to research and discover the area.  Once you've experienced living there on a temporary basis, you can make a better decision about committing to homeownership there.

2. Uncertainty 


There's a lot of uncertainty in our world today. If you think you might need to move in the near future, maybe for career or other reasons, you might want to rent. Income changes can also affect your ability to borrow, as well as impact your ability to pay your mortgage payments. Buying ties you down both physically and financially. 

3. Utilities


In many cases, your landlord will include your utilities with your monthly rent. Water, sewer and garbage are most commonly included. However, some places even have deals where electricity, cable and internet are also provided in your monthly fees. When you own your own home, you have to pay for all those expenses, meaning you're responsible for getting those bills paid on time. 

As you can see, there are many pros and cons to both renting and buying. The decision on which is actually better completely depends on your personal situation and needs. If you're considering purchasing a home at the Lake of the Ozarks, give me a call at 573-746-7211. As your Lake of the Ozarks mortgage lender, I will run through the numbers with you and help you make the right decision about a new home purchase.

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.
at No comments:

Friday, September 4, 2015

Celebrate Labor Day Weekend with Fireworks!

Labor Day Weekend, the last big weekend here at the Lake of the Ozarks is here! From fireworks to food, there will be plenty of fun for the entire family this holiday weekend. Your Lake of the Ozarks mortgage lender wishes you a great Labor Day Weekend. Be sure to check out some of these great fireworks displays!

Labor Day Fireworks at Lake of the Ozarks


Fireworks Fun Fest at Old Kinderhook 
Friday, September 4th
Free festivities at Old Kinderhook include clowns, bounce houses, face painting, games for children and adults and free live entertainment from 5-9 PM. Food and drinks will be available for a small cost. Call for more details: 573-317-4314. 

Bear Bottom Resort
Saturday, September 5th
Sunday, September 6th
Both shows start at 9:45 PM. View by land at Bear Bottom Resort or by water at the 38 MM. Parking is limited, so arrive early. Call for details: 573-374-6905

Village Marina and Yacht Club
Saturday, September 5th
Fireworks start around 8:30 PM or Dusk. View by land at Boathouse Lakeside Bar & Grill or by water at the 3 MM. Call for details: 573-365-1800. 

Tan-Tar-A Resort 
Sunday, September 6th
Fireworks show will run from 8:30-9:30 PM. Viewing by land on the Tan-Tar-A property is reserved for resort guests only. You can view by water at the 26 MM on your own boat or aboard the Tropic Island Cruises Yacht. Call for reservations and details: 573-348-0083. 

The Lodge of Four Seasons
Sunday, September 6th
The event will be held from 6-10 PM, with a BBQ and carnival prior to the fireworks (weather permitting). Cost is $22 for adults and $12 for children, with children 5 and under free. Paid non-hotel guests must be on the property before 8 PM. You can also view by water at the 13 MM from your boat or aboard the Celebration Cruises Yacht. Call for reservations and details - 573-480-3212.

The Lake of the Ozarks has a wonderful sense of community and always has fun events going on all year round. Have you considered purchasing a second home at the Lake of the Ozarks and becoming a part of this great community?  Talk to your mortgage lender today about Lake of the Ozarks home loan options. 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.
at No comments: