13 Interesting Facts About Credit Scores

Credit scores are a common topic in the mortgage industry. In today's blog, your favorite mortgage lender at the Lake of the Ozarks offers a few interesting facts about credit scores. Keep reading to see if you've heard any of these fun facts before.

1. The widely used FICO (Fair Isaac Corporation) score is based on the work of engineer Bill Fair and mathematician Earl Isaac, who founded the firm in 1956. They developed the first credit bureau-based scoring system in the mid-1980s.

2. Credit scoring got a huge boost in 1995 when the U.S.’s two largest mortgage-finance agencies, Fannie Mae and Freddie Mac, recommended lenders use FICO credit scores. Their recommendation carried enormous weight in the home loan industry.

3. Some variation of the FICO score is used in 19 countries outside the U.S.

4. The “Great Recession” had a significant impact on the credit-scoring world. More people fell into the lower brackets: 25% had scores under 600 in October 2010, compared to 15% in 2006.

5. To get the highest possible credit scores, a person needs both revolving debts, such as credit cards, and installment debts, such as mortgages or auto loans.

6. The average American has 13 credit accounts showing on their credit report, including 9 credit cards and 4 installment loans.

7. Most Americans use less than 30% of their available credit limits. Only 1 in 6 uses 80% or more.

8. Maxing out credit cards damages credit scores by 10 to 45 points.

9. About half of Americans don’t have a single late payment on their credit reports. However, approximately 4 in 10 have been 60 days or more overdue in the past 7 years.  

10. Over 144 million people, or 2/3 of American adults, haven’t looked at their credit report in the last year. Over 1/3 of Americans adults admit that they do not know their credit score.

11. There's an online dating service out there called CreditScoreDating.com for those that are concerned with the financial situation of their potential mate.

12. The Bangladesh-based Grameen Bank uses gender in its credit scoring model and mostly lends to women. As of December, 2015, the bank had 8.81 million borrowers, 97% of whom were women. To them, women are seen as more responsible borrowers than men.

13. More than 8 million people fall victim to identity theft in the U.S. each year. Consumers spend hundreds of millions of hours trying to resolve the problem, stop the fraud, and clear up their credit reports.

When it comes time to secure a mortgage at the Lake of the Ozarks, your credit score is an important factor. There are a number of programs available to help borrowers better their credit score. A solid credit score lends to more financing options when preparing to buy a home. For more information on how your Lake of the Ozarks mortgage lender can help you purchase your dream home, give me a call at 573-746-7211.

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

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

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 Difference Between Interest Rate and APR

When financing a home at the Lake of the Ozarks, it's important that you look at more than just the interest rate. There are other factors to consider when looking for the best value in a loan. In today's blog, your Lake of the Ozarks mortgage lender discusses the difference between interest rate and annual percentage rate (APR).

Interest Rate

Your mortgage interest rate is the cost of borrowing the principle loan amount. The rate can be variable or fixed, but it is always expressed as a percentage. This number does not include any of the extra fees associated with a home purchase.

Annual Percentage Rate (APR)

Annual Percentage Rate, or APR, is a broader measure of the cost of borrowing money. Not only does the APR reflect the interest rate, but it also includes mortgage points, mortgage broker fees and other loan fees. Due to these additional factors, your APR is typically higher than your interest rate.

The Difference

The main difference between interest rate and APR is that the interest rate reflects what your actual monthly payment will be. The APR reflects the total cost of the loan over the life of the loan. A consumer can use one or both when comparison shopping for a home loan at the Lake of the Ozarks. If a home buyer is solely focused on the lowest monthly payment possible, then the interest rate should be the focus. However, if the borrower is focused on the total cost of the loan over time, then the APR should be used as the comparison tool. Consider the amount of time you plan to spend in your home to determine which measure to use. If you plan to stay in your house for the 30 years or close to it, then it would make sense to go with a loan with the lowest APR. However, if you only plan to be in your home for a few years, it might be smart to go with lower upfront fees and a higher APR because the costs will be less over the first few years. Do the math and figure out what your break-even point would be.

Making the calculations and determining what's right for your situation can be challenging. That's why it's so important that you find the right mortgage lender at the Lake of the Ozarks. Call 573-746-7211 to start the mortgage process today. I'll explain your different options and help you understand how they meet your individual needs. Before you know it, we'll have you in the home of your dreams!  

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

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

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.

Join Us at the Overland Park Boat Show

The Lake of the Ozarks Marine Dealers Association will be hosting their annual Overland Park Boat Show in just two weeks. Your favorite Lake of the Ozarks mortgage lender will be there as a vendor. Join us January 26-29 at the Overland Park Convention Center for Kansas City's largest boat show of the season!

Boat Show Details 

The 2017 Overland Park Boat Show is the premiere show for boating enthusiasts all over the Midwest.

Boat Show Hours: 
January 26: 3-9 PM
January 27: 12-10 PM
January 28: 10 AM - 9 PM
January 29: 10 AM - 5 PM

Admission: 
$9.00 for Adults
$5.00 for Children 6-12
Children 5 & Under FREE

See the latest in 2017 cruisers, runabouts, performance boats, tritoons, ski boats, personal watercraft, docks, lifts and all boating accessories at KC's largest boat show. This is the time of year where you can find the best deals on boats, lifts and more. With all your options in one place, it will be easy to compare them. Whether you're looking to purchase a boat for the first time or wanting to upgrade, this is the place to be! Bring the entire family to this fun annual event!

Purchasing a Second Home at the Lake of the Ozarks

If you're tired of hauling a boat to the Lake time and again throughout the summer, consider purchasing a second home at the Lake of the Ozarks. Not only would this allow you to store your boat at the home, but you wouldn't have to find accommodations each time you come for a visit. In addition, you could consider renting out the home during the time you're not using it to help offset the costs. There are so many benefits to owning a second home, especially one at one of the top vacation destinations in the midwest!

Stop by our booth at the boat show to learn more about how our mortgage company can help you with all your Lake of the Ozarks home financing needs. My team and I are committed to working with you every step of the way, from offering competitive rates to backing it up with the first-class service you deserve! If you're unable to attend the event, but would like more information about a mortgage at the Lake of the Ozarks, give us 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

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

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.

7 Tax Deductions Every New Homeowner Should Be Aware Of

Along with the new year comes tax season. Did you know that as a homeowner at the Lake of the Ozarks you have the opportunity to take some deductions? In today's blog, we discuss some of the possible tax deductions you might be eligible for. Keep these in mind when preparing your taxes this year.

1. Mortgage Payment Interest Deduction

When you own a home that you're paying a mortgage on, you can deduct the interest paid on up to $1 million worth of loans. This deduction is particularly beneficial to new homeowners because you pay more interest in the beginning. In order to claim this deduction on your tax return, you'll need to file an itemized tax return. Your loan provider should send you a Form 1040 shortly after the tax year ends that shows how much you've paid in interest for that year.

2. Mortgage Points Deduction

Many homeowners overlook the deduction of points that may have been paid to secure the mortgage loan in the first place. Since mortgage points are prepaid interest, they also qualify for a deduction. While interest rates are currently low, buying points is still one of the best tax breaks available to new homeowners. The return on investment is two-fold because you get to deduct the cost of the points and the amount paid in interest in the same year as the home purchase.

3. Tax-Free IRA Withdrawals

As a first-time home buyer, you are able to pull funds from an IRA to help come up with the downpayment on your home without paying the typical penalty. Those funds can then be used to cover a downpayment, the closing costs and other expenses associated with becoming a homeowner for the first time.

4. Real Estate Tax Deduction

Taxpayers who itemize their deductions are also eligible to deduct real estate taxes paid on both their primary and secondary residences, as long as they were paid within the year for which you're filing. This deduction is only available for homes you own; you can't claim taxes you paid for someone else's property.

5. Home Improvements Deduction 

There's a possibility that you can claim a deduction for home improvements made over the past year as well. You can qualify for these deductions one of two ways. First, if you use a home equity loan or other loan secured by your home to finance the improvements, those loans will qualify for the same mortgage interest deduction discussed above. Second, when you sell your home, you can include the cost of improvements when determining your capital gains or losses on the sale. If your home sells for more than you paid for it, that extra money is considered taxable income; however, you can lessen your tax liability by writing off those home improvement costs. Make sure you keep track of any home improvement costs by keeping all your receipts so you can prove the costs you claim.

6. Home Office Deduction

If you work from home, you can take a deduction for the room or space used as your office. This can even include working from your garage if you have your own repair business. The deduction can include expenses like mortgage interest, insurance, utilities and repairs, and it is calculated on the percentage of your home devoted to your business activities. Just make sure that the workspace information you provide to your tax preparer is as accurate as possible. There are specific requirements for taking this type of deduction.

7. Home Energy Tax Credits 

When you take steps to make your home more energy efficient, you can offset those improvement costs with the Residential Energy Efficiency Property Credit. You could save up to 30% of the total cost of installing certain renewable energy sources in your home. Keep all receipts and contracts from the installation to prove your claim on your tax return.

Be sure to talk with your tax professional to see what tax deductions you might qualify for. If you have yet to become a homeowner, talk to a mortgage lender at the Lake of the Ozarks about financing. Maybe next year you can take advantage of these deductions and credits, while also living in your dream home at the Lake of the Ozarks! For all your Lake of the Ozarks mortgage needs, give us 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

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

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 Questions to Ask Yourself Before Buying a Home

Are you considering becoming a homeowner for the first time? When it comes to purchasing a home at the Lake of the Ozarks, there are a lot of things you should consider. Before diving into the home buying process, ask yourself these 5 questions:

1. Am I Ready for Homeownership? 

Becoming a homeowner is a big undertaking. If you are used to renting, there are a lot of luxuries of having a landlord that will go away when you own your own home. What do you do when your heating or cooling system stops working? What if the garbage disposal breaks? Undertaking homeownership comes with a lot of added responsibility. While homeownership also comes with advantages, it is not a decision that should happen overnight. Consider what it means to be a homeowner and do your research before diving in.

2. Have I Considered ALL the Costs of Homeownership? 

Your Lake of the Ozarks mortgage is not the only expense you have to worry about. As a homeowner, you should consider the costs of insurance, taxes and utilities, as well as any repair needs that arise. Few buyers actually plan for these added costs; they look at the mortgage payment as being less than their current rent, but those are not the only numbers to consider.

3. How Much Can I Afford? 

One of the most common questions prospective homeowners ask is, "How much can I afford?" Before starting your home search, it is important to know what you can afford. You do not want to find the perfect house to realize it is out of your affordable price range. Talk to a mortgage lender at the Lake of the Ozarks to help you determine not only how much you can qualify for in a loan, but how much you can reasonably afford (with all the above homeownership costs considered). 

4. How Much Do I Have for a Downpayment?

While there are programs out there with little-to-no downpayment requirements, your downpayment is something to consider. The more you can put down up-front, the less you will have to borrow and the less you will pay in interest charges. If you have been saving for a home purchase for awhile now, then you will have no problem making a downpayment. In addition, often times you can be gifted the downpayment from a relative. However, if that's the case, be sure to read our blog about receiving a downpayment gift.

5. Am I Prepared to Pay Closing Costs?

The downpayment is not the only up-front cost you need to consider. You need to make sure you have enough cash to cover the closing costs. It is suggested that home buyers have approximately four percent of a home's purchase price set aside to cover these fees. Make sure that you have enough cash set aside for the closing costs and that paying these fees will not deplete your savings and/or emergency funds. If you do not think you have enough cash to cover these fees, talk to your Lake of the Ozarks mortgage lender about your options for lower closing costs or wrapping some of the costs up into the mortgage.

Finding a reputable mortgage company at the Lake of the Ozarks is the first step in a successful home buying process. Give us a call at 573-746-7211 to discuss your Lake of the Ozarks home financing options. As your local lakelender, I'll work with you every step of the way and back it up with the personal 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

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

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.