4 Benefits of Making Bi-Weekly Mortgage Payments

How a homeowner chooses to pay off their mortgage can have a huge impact on the amount of money spent over the life of the loan. Bi-weekly mortgage payments allow homeowners to make an extra payment every year. That extra payment may not seem like much, but over a 30 year term can end up saving you a lot of money. As your Lake of the Ozarks mortgage lender, I would like to share with you several benefits of bi-weekly mortgage payments.

1. Reduce the Term of Your Mortgage. 

Many people think of a month as 4 weeks and half a month as two weeks, but that's not exactly true. With 52 weeks in a year, there are 26 bi-weekly periods. If you make 26 bi-weekly payments, that's the equivalent of 13 monthly payments. Therefore, you end up paying one extra payment per year. The one extra payment per year can add up big time and allow you to pay your mortgage off in less than the original 30 years.

2. Decrease the Outstanding Principal Loan Balance Faster. 

That one extra payment per year also reduces the amount of principal you still owe on your Lake of the Ozarks home loan. Principal is the amount of the loan before interest. The faster you can pay down the principal part of your loan, the more you will save in interest. The interest amount is based on the amount of principal you still owe after each payment is applied each month, or in this case every other week.

3. Save Money By Paying Less Interest. 

By decreasing the amount of principal faster, you also reduce the total amount of interest paid over the life of your mortgage. This can end up saving you thousands of dollars. You will need to make sure that your lender is applying the payments as they come in though, rather than waiting until the second half comes in. If not, the homeowner will not get the full benefit, as the principal is still accruing interest on the amount left before that payment is applied. You have to pay down the principal first in order to reduce the amount of interest paid.

4. Increase Your Home Equity Faster. 

With each mortgage payment you make, you are decreasing the amount you owe on your home loan. The less you owe, the more you own, in the form of home equity. Depending on the type of loan you have and how much you spent upfront on a downpayment, you might be paying private mortgage insurance until you reach a certain amount of home equity. By making bi-weekly mortgage payments, you would be able to reach that home equity level and therefore, would be able to stop paying for that insurance.

If you're thinking about applying for a home loan at the Lake of the Ozarks, give me a call at 573-746-7211. I'm here to help you every step of the way and help you determine what home loan options are best for your unique situation. Your mortgage lender at the Lake of the Ozarks is here to help with all your financing needs!

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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.

Halloween Events at Lake of the Ozarks

Halloween is just under two weeks away and the celebrating starts now at the Lake of the Ozarks. There are tons of family-fun Halloween events happening all throughout the next two weekends. Grab the kids, grab some costumes and head on out to some of these great events. Happy Halloween from your Lake of the Ozarks mortgage lender!

Pumpkin Patch at Hy-Vee Hollow: October 24-25

Fun activities for the entire family, Saturdays and Sundays 10am - 6pm. Straw bale maze, old fashioned water pump duck races, a corn pit, seesaws, hay mountain and free hayrides.

Bonfire & Hayride at The Lodge of Four Seasons: 

Saturdays through November 14

Come enjoy a hayride and bonfire on the beach complete with s'mores, hot chocolate, hot cider and complimentary pumpkins for children under 12. Hayrides begin at 5:00 pm and run every 20 minutes with the last ride leaving at 6:40 pm. Reservations are strongly suggested as there is limited space available on each ride. Hayride & bonfire are $5 inclusive per person. Ages 5 and under are FREE. For more info or to make your reservation, please call 573-365-3000 ext 0.

Lucas Oil "Spookway" Free Trick-or-Treating for Kids: October 24

This Annual Safe Trick or Treat Night is a big hit with the area youth as the "Diamond of Dirt Tracks" gives kids a safe trick or treat experience. The event begins at 5:00pm on Saturday, October 24th. The event is FREE to the public and everyone is welcome to attend. This is a great avenue for area business owners, groups, and organizations to show their wares to Mom and Dad while handing out treats to the kids. Last year over 500 trick or treaters visited the Lucas Oil "Spookway".

HOWL-O-WEEN Festival: October 24 

Dogwood Animal Shelter's annual HOWL-O-WEEN Festival offers family fun from 10 am to 2 pm! Contests, food and entertainment, plus vendor booths and lots of smiles!

Eldon PTO Trunk-or-Treat: October 24

Join the Eldon Elementary PTO in a FUN, FREE, FAMILY fall themed event from 6-8 pm. Along with a large Trunk-or-Treat, the City of Eldon will be providing a hayride, maze and bounce house all for FREE!

Kid's Halloween Spooktacular at Captain Ron's: October 25 

Bring your little ghosts & goblins to Captain Ron's from 5-7 pm to grab some loot! Several local businesses will be handing out goodies!

Hy-Vee Hollow Trick-or-Treat Maze: October 29 

Safe trick-or-treating and family fun in the Hy-Vee parking lot from 4-7 pm. All money raised from this event will be donated to Dream Factory, an organization making dreams come true for critically and chronically ill children.

Tunnel Dam Gardens' Haunted Maze and Hayride: October 30-31

The Tunnel Dam Gardens Haunted Maze and Hayride is back! The "Spookiest Family Plots" contest is giving the area's most maniacal minds an opportunity to unleash their horrific visions and possibly win a few bucks in the process. "Family Plot" displays will be set up along the hay ride route, and voted on by visitors. Cash prizes will be awarded to audience favorites. Admission is $5 per carload. The event runs from 7-11 pm both Friday and Saturday.

Halloween at The Ice: October 31 

Dress up in your favorite Halloween costume and come to The Ice! We will have games and activities. Candy for the kids and a Halloween costume contest. Cost for skate: $10 for a skate session and $3 for skate rental. The event will run from 4-10 pm.

Halloween Bash on The Strip: October 31

Trick-or-Treat at the businesses along the Historic Bagnell Dam Strip from 2-4 pm. Costume contests for both kids and adults!

Happy Halloween! When you own a second home at the Lake of the Ozarks, you can enjoy all these community events all year long! Now is the time to buy if you're thinking about it because interest rates are still sitting near all time lows. For all your Lake of the Ozarks home loan needs, give me a call at 573-726-7211.

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.

5 Tips for Purchasing a Foreclosure

Have you been thinking about purchasing a home at the Lake of the Ozarks? While there are many options for real estate out there, one thing you might consider is a foreclosure. The great thing about foreclosures is that you can typically get a really great deal on the home as long as you're willing to put in some work. Your Lake of the Ozarks mortgage lender is here to explain foreclosures and offer tips for buying one.

What is a Foreclosure? 

A foreclosure is any home whose original owner defaulted on their mortgage, resulting in the lender repossessing it. The lender is then allowed to resell the home to a new buyer. Often times these foreclosures can be purchased from the bank at a discounted price. Lenders would typically prefer to recoup their losses than have a foreclosure sitting on the market for a long period of time.

Buying a Foreclosure

Buying a home that's been foreclosed on is quite different than your typical real estate transaction. Buying a foreclosure is not exactly easy, but if you can make it through the process, the benefits are great. Not only are you going to get a great deal on the property, but it's sitting vacant, so you can move in without waiting for someone else to move out. On the down side, there's often little room for negotiation and you, as the buyer, will be responsible for any repairs that need to be made to the home. If you're considering purchasing a foreclosed home at the Lake of the Ozarks, keep these 5 tips in mind.

Tips for Buying a Foreclosure 

1. Find a Trusted Real Estate Agent - Find an agent that works directly with banks that own foreclosed homes. Banks usually hire one or a few agents to handle these foreclosures for them. In a lot of cases, the buyer works directly with the bank's broker instead of a buyers agent. A good place to start is to look online for websites with foreclosure listings; the point of this isn't to find a property just yet, it's to find your agent. Many of these properties will be listed as REO meaning "real estate owned". This signifies the home has been foreclosed and the lender is selling it.

2. Get Pre-Approved for a Mortgage - To prove that you are serious about buying a foreclosure, meet with a lender before meeting with an agent. One problem that is seen a lot is that the buyer wants to find a house first and then figure out the financing. However, especially in this case, that doesn't work. Foreclosures typically have really great deals, which means they go fast! The buyer doesn't necessarily have time to figure out financing because the house has already been sold to someone who got their financing in order before even looking at the house.

3. Study the Sale Prices of Homes in Your Area - There is no rule of thumb on what the bottom line dollar will be for these foreclosed properties. Just like with any other real estate transaction, you want to look at recent sale prices of comparable homes in the same area. Since the bank prices foreclosures quite low, it's possible that they will have several offers above that amount at the same time. Therefore, it's important to know both the value of the home and also how much you can afford so you can make a competitive offer.

4. Remember the Sale is for the Home as Is - Keep in mind that foreclosed homes are typically sold as they are. That means you shouldn't expect a discount to cover repairs that need to be made. If you're worried about getting even more of a discount on an already discounted home, you're probably going to lose it to someone else who is willing to pay the asking price.

5. Know How Long It Takes to Sell a Home in Your Price Range - You should find out how quickly homes in your price range are selling. Foreclosures in a gated community with a pool might sell within a day or so, whereas a more modest home might sit on the market for a few weeks. It all depends on the market conditions. If the homes you're looking at are selling quickly, the best thing to do is come in with your highest bid. You don't want to be upset that you lost a property because you bid lower than you were willing to in order to get it. If you really want the home, it's better to just bid the higher price in the first place.

If buying a foreclosure is something you might be interested in, you'll need to get pre-approved for a home loan at the Lake of the Ozarks. As your mortgage lender, I can work with you every step of the way. I'll discuss financing options, offer competitive rates and back it up with the first class service you deserve. Contact me at 573-746-7211 to get started today!

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.

Mortgage Payments Explained

Owning your own home is quite a bit different than renting one. When you rent, you simply write a check or hand cash to your landlord. Many of your utilities are included in that amount, with the exception of probably your electric bill, and maybe cable/internet. When you own a home though, you have to pay a mortgage, which isn't as simple as making one payment. Your Lake of the Ozarks mortgage lender is here to explain the different aspects of your monthly mortgage payment:

Components of a Mortgage Payment

The primary factors in determining your monthly mortgage payment are the size and terms of the loan. Once those factors are set, you'll be able to determine the monthly payment. A mortgage payment typically consists of four parts known as PITI: Principal, Interest, Taxes and Insurance.

1. Principal - The principal is the actual amount that you borrowed. With each monthly mortgage payment, you will be paying this balance down. Fixed-rate loans are structured so that the amount of principal paid starts out small and increases with each monthly payment. This means that the mortgage payments in the beginning years consist mostly of interest, those payments later on will consist mostly of principal.

2. Interest - Interest is the "cost" of borrowing the money (principal). The interest rate on a mortgage has a direct relationship with the amount you pay each month. A higher interest rate means higher monthly mortgage payments. Therefore, for most home buyers, a higher interest rate reduces the amount they're able to borrow, while a lower interest rate increases that amount.

3. Taxes - While real estate taxes are calculated by the government on an annual basis, you usually pay them as part of your monthly mortgage payment. Most lenders will require an escrow account in which 1/12 of your annual property tax bill will be collected with each monthly mortgage payment. The funds will be held in the escrow account until the tax bill is due.

4. Insurance - Like the real estate taxes, insurance payments are also paid monthly and held in escrow until the bill is due. There are two types of insurance that can be included in your monthly mortgage payments: homeowners insurance and private mortgage insurance (PMI). The first type protects the home and its contents from fire, theft and other disasters. The second type protects the lender in the event the borrower is unable to repay the loan. PMI is mandatory for homeowners who purchase a home with less than a 20% downpayment. The PMI portion can be dropped once the homeowner has at least 20% equity built up in the home.

Before you choose to make the financial investment of purchasing a home at the Lake of the Ozarks, it's important to understand all of the components that go into a mortgage. As your mortgage lender, I am dedicated 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. For all of your Lake of the Ozarks home loan 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.

Moving vs. Remodeling Your Home

Have you outgrown your space? Do you need an extra bedroom for a new addition to the family? Maybe an extra bathroom would be nice, since your teenage daughter is always in the one and only bathroom you currently have. Whatever the reason, you know it's time for a change. The question now is, should you move to a new home or just remodel your current one? Let's take a look at the some advantages and disadvantages of both:

Moving to a New Home

While moving is definitely an exciting time, it can also be very stressful for the entire family. Many people underestimate the costs, financial and otherwise, of moving to a new home. In addition to a larger mortgage payment, you'll also probably have higher upfront costs and utility costs, more taxes, added moving costs, etc. Time should also play into the considerations; how long will it take to sell your house and find a new one that fits your needs? Will the kids have to switch school districts? How does a move affect your commute to work? Let's take a look at some of the advantages and disadvantages of relocating:

Advantages

1. Fresh Start - Just like getting married or having a child, moving to a new house is a new beginning. It's a chance to start fresh and build the life that you want. Your surroundings are new and you have new neighbors to meet. It's out with the old and in with the new! 
2. Family Bonding - Since moving can bring about fears of the unknown, it's a chance for bonding with your family. You're working through this new experience together, which in turn brings you closer together. During the adjustment period, families often retreat to the comfort of familiar relationships and common interests. 
3. Financing Options - You've already bought a home before, so you're already familiar with the loan process and the different financing options that are available. You also have professional help available through your real estate agent and your mortgage lender at the Lake of the Ozarks. 
4. Taxes - Tax laws could have a positive impact on your choice to sell your home and buy a new one. You could even come out with money in your pocket due to the capital gains exemption. Tax credits may be available as well, depending on when you buy your home and how eco-friendly the new place is. 

Disadvantages 

1. High Transaction Costs - Selling and buying a home involves the help of many people, each of whom will get some type of commission off the transactions. In addition to real estate commissions, there are appraisal expenses, title search fees, title insurance, and legal fees. All of these can be avoided by choosing a remodel over a move.  
2. Hassles of Moving -  There's no doubt that moving is a pain. Dealing with all the stuff you've accumulated over the years can be overwhelming. Many of the items you find probably never get used, which leads to the need to go through everything as you pack it. This process makes packing and moving take even longer. 

Remodeling Your Home 

As expensive as it is to renovate, it's tempting to think that moving is the safest bet. The fact of the matter is, contractors won't give you an unbiased opinion because they want the work. First, you should get a cost estimate and then determine how much value the remodel would add to your home. Once you've determined those numbers, compare the new value with the value of other homes in your neighborhood to figure out if you can make your investment back or not. Here are a few other advantages and disadvantages to remodeling for you to consider:

Advantages 

1. Less Expensive - As a general rule, home improvements cost less than moving up, but it depends on what kind of improvements you’re doing. Remodeling occurs on a room-by-room basis. Therefore, you can change as little or as much as you need to still stay within your budget. 
2. Stability - By remodeling rather than moving, you're able keep the same neighbors, shop at the same nearby grocery stores and more. Moving is stressful; there's no doubt about that. Remodeling allows you to stay in comfortable surroundings and sometimes stability is most important. 
3. Familiarity - You know eveything there is to know about your current house. If you get a new one, you don't know how much the utilities are going to run or how recent repairs have been made. The air conditioner could go out the day after closing or the roof might be just days away from starting to leak. Did the previous owners keep up on the maintenance as well as you do? You can never know exactly what to expect in a house that was owned by someone else. 
4. Customizable - When searching for a new home, it's hard to find one with everything that you like. Remodeling allows you to keep the aspects of your current home that you like, but change the others to meet your needs. Renovations are completely cusomizable to fit your needs and allow for personalization. 

Disadvantages 

1. Financing - In order to afford a remodel, you'll probably have to take out a second mortgage on your home. While there are benefits to getting a home equity loan, there are also risks. For more information on this type of financing, check out our previous blog, "The Pros and Cons of Taking Out at Second Mortgage." These loans typically require a higher credit rating, and involve higher interest rates. Approvals are determined on the amount of equity in the home, the cost of the remodel and the expected home value once completed. 
2. Construction Time - Remodeling means that your home will be in shambles for days, possibly even weeks depending on the project. If you choose to stay in a hotel, there's an added expense, but if you choose to stay at home,  it's a bit stressful and loud. A remodel requires a lot of patience. 

Financing Your Decision 

The decision to remodel or move comes down to two thing: emotions and finances. As your Lake of the Ozarks mortgage lender, I'm here to help you with all of your financing needs. Together we can take a look at your financial situation and come up with the best solution to fit your needs. Whether you're looking for a home equity line of credit to afford some renovations or a new home loan at the Lake of the Ozarks, First State Bank Mortgage has options for you. Contact us today at 573-746-7211 to get started!

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.