2020 Mortgage Considerations

2019 was a great year for buying a home, but if you weren’t able to make your purchase, all hope is NOT lost! 2020 is continuing on with the great interest rates, and awesome reasons to buy a home at the Lake of the Ozarks. Team Lasson wants to help you get your vacation home at the Lake of the Ozarks purchased and ready for you to enjoy as soon as possible, so here are a few things to keep in mind about mortgages in 2020, we think it’s pretty exciting!

Rates Are Still Low

If you were watching rates in 2019, you know that they were amazing. The good news is that rates are continuing to stay around the same low levels. There is no way to really predict exactly what the rates will do throughout the year, the only thing you can be sure of is what they are today and what you do about it.

The Home Search Could Be Hard

Realtor.com is predicting that in 2020, home inventory could reach a historic low as a steady flow of demand, especially for entry-level homes. If you’ve been considering purchasing a home at the Lake, NOW is the time to get started. Start by visiting our website at www.yourlakeloan.com and applying for your pre-approval, then find your real estate agent and start looking for your dream property. If there is going to be a shortage of homes and condominiums on the market this year, getting started early could be a huge advantage.

Get Prepared

The first and best thing you can do is to start getting prepared. This can include tracking your spending, saving up for the down payment, improving/maintaining your credit score, and getting pre-approved with Team Lasson. Start gathering documents like your tax returns, paychecks stubs, bank and asset statements, and W-2 information. If you want more information about preparing financially for your real estate purchase at the Lake of the Ozarks, you can check out our blog: New Year’s Resolutions that Help with Homebuying.

Now is a Great Time to Purchase

Mortgage rates have been at historic lows which makes it a great time to buy real estate. Team Lasson has enjoyed helping many homebuyers become homeowners over the past few months, and there’s still time to make that happen for you. If you have been hoping to buy a home at the Lake of the Ozarks, this really is a great season for it. With rates looking good, and a few more months before Summer starts, you can have the vacation home of your dreams just in time!

Visit our website (www.YourLakeLoan.com) to learn more about our business, as well as submit your application. We look forward to working with you!

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

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.

Understanding Mortgage Discount Points

When applying for a home loan at the Lake of the Ozarks, you want to get the best rate possible for you. In today's blog, your Lake of the Ozarks mortgage lender discusses mortgage discount points and how they can help you lower your interest rate and save you money in the long run. 

Mortgage Discount Points

Mortgage discount points are a one-time, upfront fee that gives the borrower access to a discounted mortgage rate. Essentially, it's prepaid mortgage interest. In general, one discount point will lower your mortgage rate by 25 basis points or 0.25%. The points are fees used to "buy-down" your mortgage interest rate. The cost of each discount point is equal to 1% of your total loan. Be sure not to confuse these points with "origination points," which are fees the bank charges to do your loan.

How Your Mortgage is Affected

As a rule of thumb, one discount point will lower your mortgage rate by 0.25%. However, two discounts points won't necessarily lower your mortgage rate by 0.5%. Different banks will offer different sets of discounts in exchange for you buying points. While your upfront costs will increase, you can see a significant savings in your monthly payment when you choose to purchase discount points. In addition, the costs of your discount points are tax-deductible, so there's also a tax advantage to purchasing discount points.

Should I Purchase Discount Points?

Every Lake of the Ozarks mortgage loan will have its breakeven point for buying points. If you plan to stay in your home beyond that point (and don't plan to refinance), then purchasing the discount points is probably a good idea. If not, the points can be a waste, so be sure to do the math to see if its the right move for you. Also, be sure to look at the mortgage rate alone, not the APR. The APR is a calculation that shows the long-term cost of holding a mortgage, but it assumes you'll hold your loan for 30 years, which is rarely the case.

Choosing to purchase discount points is a financial decision that varies from borrower to borrower. Talk to your favorite mortgage lender at the Lake of the Ozarks today to see what rates are available to you and go from there. For all your home financing needs, give us a call at 573-746-7211. Home loan rates are still at all-time lows, so act now before they start rising!

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.

Federal Funds Rate Rises For First Time In Seven Years

Last Wednesday, the Federal Open Market Committee announced the first increase to the Federal Funds Rate in seven years. This increase in the rate recognizes the considerable progress that has been made toward restoring jobs, raising incomes and easing economic hardships facing our country today. The increase also reflects the Fed's confidence that economic factors still lagging behind desired levels will continue to improve, particularly inflation, manufacturing and new home construction.

What is the Federal Funds Rate? 

The Federal Funds Rate is the interest rate used when depository institutions (banks and credit unions) lend reserve balances, or money, to each other overnight. Reserve balances are amounts held at the Federal Reserve to maintain depository institutions' reserve requirements. Institutions with surplus balances in their account will lend to those institutions in need of a larger balance. The Federal Funds Rate is an important benchmark in financial markets. It was held near zero to support economic recovery following the worst financial crisis and recession since the great depression.

What Does the Increase Mean for Mortgage Rates?

While the increase to the Federal Funds Rate does not have a direct impact on home loan rates at the Lake of the Ozarks, we could see an increase in the near future. It's important to keep an eye on economic news. The economic conditions that made the Fed's finally comfortable with a rate hike, and the further strengthening of the economy, could also amplify investments in stocks, which could negatively impact bonds. Those bonds include mortgage bonds, to which home loan rates are tied.

For now, Lake of the Ozarks mortgage rates remain attractive. Now is the time to buy if you've been thinking about it. Give the best mortgage lender at the Lake of the Ozarks a call at 573-746-7211 today about your financing options. When it comes to your financing needs, I'm committed to working with you every step of the way!

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.
 

6 Factors that Influence Your Home Loan Interest Rate

You've heard that interest rates are at historically low levels. However, what exactly is that interest rate going to be when you walk in to apply for a Lake of the Ozarks mortgage loan? It's hard to say an exact rate because the numbers differ based on the person and the situation. Let's take a look at the different factors that will affect your interest rate.

1. Credit Score.

Your credit score is the best indicator how reliable you'll be in paying off your loan. It takes into account your payment history, amounts owed, types and length of credit, and new credit inquiries. Generally, the higher the credit score you have, the better the rate you'll qualify for.

2. Downpayment Amount.

The larger the amount you choose to pay upfront on your home will not only decrease the amount of the loan, but can also help you get a better interest rate. Mortgage lenders at the Lake of the Ozarks see less of a risk when you're more invested in the property.  

3. Property Type.

The type of property you're purchasing, including size and location, will also have an affect on the interest rates you're offered. Lake of the Ozarks homes are often second homes or vacation homes for many people, and therefore, that rate will be different than if the home were going to be your primary residence. 

4. Loan Type and Term.  

Rates can vary depending on the type of loan that you choose, such as Conventional, FHA, VA, USDA, etc. In addition, the term of your loan can also impact the rate. While 30-year mortgages are the most typical, choosing a 15-year mortgage could get you a lower rate. This would also lower your overall costs, but you would be making higher monthly payments.  

5. Home Price and Loan Amount.  

The price of the home minus the amount of your down payment will determine the loan amount or the amount you will need to borrow. Typically, your rate will be higher if you're taking out a particularly small or a particularly high loan.

6. Interest Rate Type. 

There are two basic types of interest rates: fixed and adjustable. Fixed rates never change throughout the life of the loan. Adjustable rates will start at a fixed rate for a period of time and then can increase or decrease depending on the market. You can typically get a better initial rate on adjustable rate mortgages, however, you then risk the chance of it increasing significantly over the life of the loan. 

When it comes to your financing needs, your Lake of the Ozarks mortgage lender is 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. Give me a call at 573-746-7211 for more information on getting in on these low interest rates and applying for a home loan at the Lake of the Ozarks 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.

U.S. Economy Rolls into 2015 with Favorable Numbers

The U.S. economy is starting the year off with great numbers from almost every sector! As your Lake of the Ozarks mortgage lender, I strive to keep you up to date on industry news! Take a look at these numbers and let me know if there's anything I can help you with in regards to your Lake of the Ozarks mortgage this year.

Gross Domestic Product Soars

The third quarter of 2014 ended on a high note, as the final reading for Gross Domestic Product (GDP) soared to 5 percent, led by stronger consumer and business spending. The 5 percent reading was the fastest pace for economic growth in the United States since the third quarter of 2003. GDP is the value of the production of goods and services in the U.S., adjusted for price changes, and it is considered the broadest measure of economic activity. The strong reading is a good sign for our economy heading into 2015. 

Housing Sector

After a strong fall quarter, the housing sector began to slow approaching the New Year. November Housing Starts fell by 1.6 percent from October, and single-family residential starts fell 5.4 percent, while the volatile multi-family (apartments and condominiums) segment rose. Building Permits, as well as New and Existing Home Sales also fell in November. 

Jobs Sector

Despite these decreases, the housing sector has been improving overall, primarily due to wage and job growth. A strong December Jobs Report also raised hopes of kicking off 2015 with a bang. The Labor Department reported employers added 321,000 jobs in November, the highest since January 2012. Unemployment stood unchanged from October at 5.8 percent, but lower from the 7 percent reading posted a year ago. The Wall Street Journal also reported that wage growth is accelerating. 

Taken together these are good signs for economic growth in 2015, which should help the housing sector reclaim a positive trend. 

Consumer Price Index

Something to watch as we jump into a new year, is the Consumer Price Index. Inflation can have a big impact on the Bond markets, and also on Lake of the Ozarks home loan rates, which are tied to Mortgage Bonds. The Consumer Price Index (CPI) measures monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Plunging prices at the gas pumps led consumer prices lower in November. The CPI fell by 0.3?, versus the -0.1% expected, as the inflation reading gauge posted its largest monthly decline in 6 years. The bottom line is that inflation is known as the archenemy of Bonds and home loan rates. Inflation reduces the value of fixed investments like Bonds. This means that low inflation often comes hand in hand with low home loan rates. Keep in mind that when inflation begins to creep into our economy, it can create rapid changes in the interest rate climate.

When it comes to your Lake of the Ozarks 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 and I guarantee!

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