Choosing the Right Mortgage Program for your Homebuying Needs

 Buying a home at Lake of the Ozarks is a time to celebrate, but it's also important to not get swept up in the buying process and forget some of the more intricate details - such as financing. Your mortgage at Lake of the Ozarks should conform to the type of home you're wanting to buy, as well as your future plans for the home. One of the main ways to ensure that you're getting the best rates, terms, and results from your mortgage is choosing the correct loan product. In this week's blog, I am going to inform you of the various loan products that Team Lasson can offer you to suit your homebuying needs.

Conventional

A conventional loan is one of the most common in the industry. This loan is funded by private financial lenders and is then sold (or kept with servicing retained - the bank provides your services for managing the loan. This varies bank to bank) to government enterprises such as Fannie Mae and Freddie Mac.  Conventional loans typically require higher down payment requirements depending on whether it's your first or second home. As well as having more stringent credit requirements, which are directly tied to the interest rate you will receive. For established buyers, conventional loans can provide great, long or short-term interest rates.

USDA

United States Department of Agriculture loans (USDA) are an advantageous way to acquire a home if you have low to moderate income and are lacking on the down payment side of things. These are typically low-interest, no down payment mortgages used to help finance homes located within eligible rural areas. There are special regulations a home and borrowers must meet to be eligible for this product, so be sure to speak with your lender about your situation and plans for buying a home.

FHA

Federal Housing Administration loans (FHA) are backed by said administration that was created to help home buyers qualify for a mortgage. They are a great option for first time homebuyers as they have more lenient credit requirements and allow for less of a down payment required by providing their own form of private mortgage insurance. 

VA

Veterans Affairs loans (VA) are issued by private lenders and guaranteed by the United States Department of Veterans Affairs. VA loans are a no-down payment mortgage option with low interest rates for active or retired veterans to purchase a primary residence or refinance an existing mortgage. There are different regulations and standards the home must meet to be processed and approved through the VA appraisal and underwriting process compared to conventional loans. So, be sure that the type of home you're looking to buy fits within these standards by speaking to your lender upfront about your plans. 

I hope that you have found this information helpful and that it helps you in obtaining a mortgage at Lake of the Ozarks. As always, I am here to help you make the best financial decisions when buying a home at Lake of the Ozarks and would be happy to discuss any of these options and which may suit your needs as a homeowner best. So, if you're looking to buy at the Lake, please feel free to give me a call or apply online to begin your journey to becoming a homeowner at Lake of the Ozarks.

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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

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.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.

How Debt Consolidation Could Benefit Your Current Financial Situation

 One thing we learn as adults is the need to have credit. As for most of us, simply using cash is just not an option. For one reason or another, sometimes we get in over our heads in debt, whether that be in the form of credit cards, student loans, car loans, or mortgages. At this point, it may be wise to consolidate your debt with a low interest rate by refinancing your mortgage at Lake of the Ozarks. In this week’s blog, I’m going to discuss the benefits of debt consolidation and how it could improve your current financial situation.

The Main Benefit: Saving Interest & Paying Off Debt Faster

Switching your debt obligations from a higher interest rate to a lower one provided by your mortgage company will work wonders on reducing the amount of interest paid on said debts over time. The lower your interest rate, the more of your payment is going directly to principle instead of paying off interest.  This in turn will allow you to save money each month allowing you to utilize more of your income to pay off the debt faster.

Easily Managed Payments

Studies have shown that the average American household has roughly seven credit cards. When you combine that with car and student loans, you can end up with quite a few debt obligations. Sometimes finding ways to effectively use your money to pay against all these debts can be cumbersome or simply unrealistic. Consolidating your debt through refinancing your mortgage will provide you with a singular monthly payment, and at a lower interest rate. Making your debt easier to track and manage.

Psychological Benefits

There is a burdened feeling that many experience when they are having debt issues. Feeling in over your head with no sign of relief can have serious effects on your emotional well-being. Debt consolidation can allow you to take control over your debt instead of letting it take control of you. You’ll spend less time stressing about which bills to pay, how much you’ll have left to live on, and increase the amount of time you have to pursue other areas of interest in your life. All while knowing that you have a manageable monthly payment to one institution that’s saving you both time and money and that is a great sense of freedom to have.

Allow Team Lasson to Help!

I am committed to help my clients achieve the best possible results from their homeownership to their finances. So, if you’re in need of help managing your financial obligations and would like to discuss your options for refinancing your mortgage at Lake of the Ozarks, please give me a call or apply online. We will review your debts and come up with a strategic plan to help make your payments more manageable or simply save you money and interest. If you don’t own a home at the Lake, I can even help you tap into the equity of your existing home if you’re interested in buying a home at Lake of the Ozarks as well. For all your homeownership needs at the Lake, you can trust Team Lasson!

 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

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.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.

What’s the Difference: Investment Property vs. Vacation Property

 There are few things that compare to owning a second home at the Lake of the Ozarks. You have a prime place to vacation at your leisure, and the ability to rent it out for some investment income while you’re not using it. But at what point does it become more of an investment property than a vacation property? Well, in this week’s blog, I’m going to be discussing the difference between an investment home and a vacation home.

What is a Vacation Home?

First, it’s important to understand what a vacation home is. A vacation home is an additional residential property that you purchase to live in part of the year. For a home to be consider a second/vacation home, it must be over 25 miles away from your primary residence (although this can vary between lenders). A vacation home also has a specific amount of days that it can be rented throughout the year to avoid being classified as an investment property. When it comes to the taxes, a vacation home must be rented out for fewer than 180 days throughout the year and must be occupied by you personally at least 14 days of the year to remain a second/vacation home.

What is an Investment Home?

As for an investment property, this is a property purchased with the intention of generating income. While you can stay in this home, but property must be rented out more than 180 days per year to be considered an investment property on your taxes. A property can also be considered an investment home if you intend to flip the property or utilize it as a commercial space.

How the Mortgage Differs

The types of mortgages will vary depending on your classification of home as well. Lenders are typically more lenient on the terms with lower qualification requirements for second homes as opposed to investment properties. You’ll find higher mortgage rates on investment homes than on second homes.  Investment property loans typically require proof of more liquid reserves, as well as a higher down payment required. It should be noted that it is fraudulent to mislead your lender about the classification of your home. So, being upfront about your plans for the property is essential to your mortgage process as it will clearly be reflected on your tax returns.

So, when it comes to obtaining a mortgage at Lake of the Ozarks, these tips should help you choose the right mortgage to suit your needs as a homeowner. Understanding the difference between investment properties and vacation properties at Lake of the Ozarks can help you obtain the best possible results with your home. As always, I am here to assist you with all your mortgage needs and look forward to helping you achieve your dreams of living or investing at the Lake.

 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

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.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.

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!

 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

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.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.

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. 

 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

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.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.