Your Lake of the Ozarks Mortgage Lender: lake of the ozarks interest rates

Friday, May 30, 2014

Credit Scores that Lenders Use

Your credit score is a number that influences the amount of credit that is available to you. When it comes to taking out a loan, your credit score is a vital factor in the terms your Lake of the Ozarks mortgage lender will offer you. When you apply for credit, whether it be a credit card, car loan or home loan at the Lake of the Ozarks, lenders want to know the risk they will be taking by loaning money to you. A credit score is a number that summarizes your credit risk and helps the lender evaluate your credit report. "FICO Scores" are the most commonly used credit scores among lenders. Beware of those companies offering you a free credit score online because the majority of them are not true FICO scores and can vary a lot.

FICO Scores

The most widely used credit score is one created by Fair Isaac Corporation. Lenders use this score to help them make billions of credit decisions each and every year. The FICO score is based solely on information in consumer credit reports maintained at the credit reporting agencies. These scores range from 300 to 850 and is calculated by a mathematical equation that evaluates many types of information from your credit report. By comparing this number to the patterns of hundreds of thousands of past credit reports, the FICO Score is able to estimate your level of future credit risk.

For more information on understanding FICO Scores visit: http://www.myfico.com

What Makes a Good FICO Score

When it comes to the FICO Score, the higher the score, the lower the risk. However, no single score can tell you whether a specific candidate will be a "good" or "bad" customer. While many mortgage lenders at the Lake of the Ozarks use the FICO score to help them make a lending decision, each lender has their own strategy. There is no single "cutoff" score number that says you will or won't get a loan. Many other factors go into determining your actual interest rates. Along with your credit score, the credit reporting agency will provide up to five reasons of why your score is what it is.

For information on how to improve your FICO Score visit: http://www.myfico.com

Calculating FICO Scores

In order to calculate your FICO Score, there has to be enough information regarding your credit. Generally, you must have at least one credit account that has been open for at least six months and at least one account that has some recent activity (within the last six months) that's been reported to the agency. You will actually have 3 different FICO Scores, one for each of the credit bureaus: Equifax, TransUnion and Experian. Each score is based on the information that the respective bureau has for you, meaning that each of these numbers can differ. As your credit information changes over the years, so will your current credit score. Therefore the FICO Score you got a month ago is probably not the same score a lender would get from the credit reporting agency today.

For more information on how credit scores can change visit: http://www.myfico.com

Although the FICO Score is an important factor when determining your Lake of the Ozarks interest rates, lenders will not base their decision on this number solely. If you have more questions on your credit score or about qualifying for a mortgage loan at the Lake of the Ozarks, give Michael Lasson a call at 573-746-7211. When it comes to your financing needs, he's committed to working with you every step of the way!

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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

Wednesday, July 10, 2013

Is the Current Housing Market In Danger?

"Yet, through all the Gloom, I can see the Rays of ravishing Light and Glory." Those words that John Adams wrote to his wife Abigail are appropriate as we just celebrated our nation's birthday--and as the employment picture brightens with the latest Jobs Report.

Non-farm payrolls surged by 195,000 in June, well above the 166,000 expected, while the data for April and May was revised higher by 70,000. The Unemployment Rate remained at 7.6 percent in June, but the U6 number, which includes people who can only find part-time work or have become too discouraged to look for a job, rose to 14.3 percent.

For the first half of 2013, employers have added an average of 201,000 jobs each month as the labor markets continue to improve. The Fed is watching this number very closely and it will be a determining factor in how long they continue their Bond purchase program known as Quantitative Easing.

The housing market is another key factor in this decision and the good news continues in that sector as well. Last week, research firm CoreLogic reported that home prices, including distressed sales, rose by 12.2 percent in May 2013 compared to May 2012. This is the biggest annual gain since February 2006. However, prices are 20.4 percent below the peak set back in April 2006. Tight inventories and historically attractive home loan rates have been the fuel behind the rise.

What does all of this mean for home loan rates?

Remember that the Fed's Bond purchase program has helped Bonds and Lake of the Ozarks home loan rates remain attractive. But if the housing and labor markets continue to improve, the Fed could consider tapering their purchases sooner rather than later. However, just the talk of potentially tapering these purchases has led to increased volatility in the markets, causing Mortgage Bonds and home loan rates to worsen recently. This is an important story to monitor in the weeks ahead.

The bottom line is that now remains a great time to consider a purchasing a Lake of the Ozarks Home or Lake of the Ozarks Refinance, as home loan rates remain attractive compared to historical levels.

We would love the opportunity to work with you on your Lake of the Ozarks Mortgage Loan or refinance. Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!