Mortgage FAQs Continued

Last week, your favorite Lake of the Ozarks mortgage lender brought you some FAQs about mortgages. In this blog, we're continuing that theme with a few more common mortgage questions and their answers:

9. What is Mortgage Insurance?

Answer: Mortgage insurance protects the lender from financial loss due to the homeowner not making their payments. It is required for mortgage transactions where there is little to no down payment made. If you make a down payment of 20% or higher, the insurance is not required because the lender is taking on less risk than if there's no down payment at all.

10. What Does My Mortgage Payment Include?

Answer: For most homeowners, a mortgage payment consists of 3 different parts: Principal, Interest and Taxes & Insurance.

11. How Much Cash Will I Need to Purchase a Home?

Answer: The amount of cash you'll need to purchase a home varies depending on a number of items. In general though, you'll need to supply cash for earnest money, a down payment and the closing costs.

12. What are Mortgage Points?

Answer: Mortgage points are divided into 2 categories: discount points and origination points. One point will generally cost 1% of the total amount that is mortgaged. You can purchase mortgage points to "buy down the interest rate." One point can generally reduce your interest rate by .25%, which can save the borrower a significant amount over the life of the loan. Talk to your mortgage lender to see if purchasing points is a smart decision for you and your unique situation.

13. What is an Escrow Account?

Answer: Your monthly mortgage payment includes a certain amount of money that's placed in a fund held by the mortgage company to pay your annual property taxes and insurance premiums. This fund is known as an escrow account.

14. Can I Still Qualify For a Mortgage After Having Filed for Bankruptcy?

Answer: While you may have to jump through more hoops, it is possible to qualify for a mortgage even after you've filed for bankruptcy. There are programs out there to help those who don't have great credit. Check out our blog, "Applying for a Mortgage After Bankruptcy" to learn more.

15. How Long Does It Take to Get a Mortgage?

Answer: The amount of time it takes from start to finish will vary depending on the situation and the lender. In general, a mortgage could be financed within 30-45 days of the application. However, it's important that prospective homeowners understand that there are many factors that can delay a mortgage approval. That's why it is very important to stay in contact with your lender throughout the entire process; responding promptly to questions your lender has for you can help to avoid some of the possible delays.

For any other mortgage questions you may have, contact the best mortgage lender at the Lake of the Ozarks 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 financing options, offer competitive interest rates and back it up with the FIRST Class Service you deserve!  

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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.