Wednesday, April 7, 2021

Just the Facts: The “Break Even Point” of Refinancing

When considering refinancing your mortgage loan at Lake of the Ozarks, there are several factors you need to account for. First, you’ll want to ensure that it’s a wise investment for you. You’ll also want to consider what your future plans are for the home. You may have heard about the term “break-even point” regarding a mortgage refinance. But what is it exactly? Well, in this week’s blog, the best mortgage lender at Lake of the Ozarks, Team Lasson is here to tell you all about the break-even point and how it can benefit your decision to refinance.

What is the Break-Even Point?

The break-even point is the point where the savings from your refinance equals the total cost to complete the transaction. This can be figured by taking all the costs associated with the refinance such as:

·         Lender fees

·         Title Costs

·         Third-party costs

·         Escrow charges

And then taking the total closing costs divided by the savings you’ll receive per month (or annually). This will tell you how long it will take you to recoup the cost (the break-even point) of refinancing your mortgage.

Other Factors Beyond the Break-Even Point

There are other factors that you’ll want to consider beyond the break-even point to determine if refinancing your existing mortgage is a smart financial move for you. Things such as:

·         Is this your “forever” home or your “for now” home?

·         How much have you paid down on your mortgage/What’s the remaining balance?

·         How long have you had the mortgage?

The reasoning these items are important is because they can have a direct impact on how long of a break-even point makes sense. For instance, if you are planning on owning the home for 2-3 more years, a break-even point of 5 years simply wouldn’t make sense from a financial standpoint. However, if you’re planning on this being your “forever” home and have many years left on your mortgage, a longer break-even point could make for smart investing.

Other Ways to Make Big Savings on Your Mortgage

Another way that you can save big money over time on your mortgage is by refinancing to a lower term. While this route will not lower your monthly payments, it will save you a large sum of interest over the course of your loan. So, depending on your future plans for the home, this could save you thousands of dollars if you plan to keep it for some time.


While there is no general rule of thumb for when refinancing is a smart decision, as the answer depends on a multitude of factors. However, you can always consult with me when considering refinancing your mortgage at Lake of the Ozarks. I will work with you, based on your plans for the home and financial structure, what smart investment options you have when financing your home. Being your premier mortgage lender at Lake of the Ozarks, I look forward to homeownership needs!


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Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065






**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Friday, April 2, 2021

What’s Included in your Mortgage Closing Costs

 You may be aware of the down payment required to buy a home, but what about closing costs associated with a mortgage at the Lake of the Ozarks? As the best mortgage lender at Lake of the Ozarks, Team Lasson takes pride in providing exemplary mortgage services and education to our clients. In this week’s blog, I’m going to be discussing the closing costs related to a mortgage and what you can expect. Continue reading to learn more!

Typical Closing Cost Fees:

You will receive a Loan Estimate which is an itemization of all the fees associated with your initial loan disclosures. Here are some of the fees that you will likely encounter:

Application Fee: this fee is charged by the lender to process your mortgage application. *Please note that Team Lasson does not charge this fee*

Origination Fee: this fee covers the lender’s administrative costs to process your loan.

Attorney Fee: this is a fee charged by a real estate attorney to prepare and review home purchase agreements and contracts.

Closing Fee: the closing fee is paid to the party that handles the documents and collects signatures at closing; typically, the title company in our area.

Courier Fee: this fee is incurred to help expedite the transportation of your closing documents. If the closing is done digitally or in-house, you may not encounter this fee.

Recording Fee: a fee charged by your local recording office, typically a city or county clerk’s office. This is for the official processing of the public land records.

Credit Report Fee: this fee covers the cost a lender incurs when they pull a tri-merged credit report from the three main reporting bureaus.

Escrow Deposit: this is an amount to set up an escrow account for property tax and homeowner’s insurance payments at closing.

Homeowners Insurance: lenders typically require a full year of the homeowner’s insurance premium at closing.

Lender’s Title Insurance: this is charged by the title company to issue the lender an insurance policy that protects them if there is an ownership dispute or lien that wasn’t found on the title search.

Owner’s Title Insurance: this is charged by the title company to issue you a title insurance policy that protects you if your ownership of the home is challenged.

Prepaid Interest: this payment covers any prorated interest on your mortgage that would accrue from the date of closing until the time of your first mortgage payment.

Appraisal Fee: a fee paid to a professional home appraisal company for assessing the homes fair market value.

Property Tax: a prorated property tax fee that collects for property tax due from the closing date to the end of the tax year.

Real Estate Commissions: (Typically seller paid but can be negotiated) The commission charged by your real estate agent. This fee is split between the buyer’s agent and the seller’s agent.

Title Search Fee: a charge by the title company to analyze the public records and history of the home for any discrepancies that could lead to ownership issues.

Underwriter Fee: a charge by the lender for the work completed by underwriters that review and analyze your loan transaction.

These are just some of the standard fees that one will likely encounter when undergoing a mortgage transaction. However, there are certain fees that only apply to special loan products, rate locks, flood or private mortgage requirements, and out of state transactions. Always be sure to discuss any fee related questions with your mortgage officer.

Your Mortgage Lender at Lake of the Ozarks: Team Lasson

Closing costs are unavoidable when buying a home. Although, there are strategic ways that you can reduce the amount of your closing costs. As your premier mortgage lender at Lake of the Ozarks, I’m always happy to discuss any mortgage related options for you to find the best solution. So, if you’re ready to buy a home at Lake of the Ozarks, I encourage you to reach out so we may discuss your mortgage options to find the best fit for your homebuying needs. 


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Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065






**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.