5 Tips for Buying a Vacation Home in the Off-Season

If you have been dreaming of the perfect vacation home at the Lake of the Ozarks, now is a great time to start your search. Much like any other real estate, there are things you need to keep your eye open for in the winter. The good news is that when things slow down during the off-season, you may even find the perfect home for an even better price. Here are a few things that Team Lasson suggests you keep in mind as you buy a second home at the Lake of the Ozarks.

Understand the Pros and Anticipate the Cons

There are always pros and cons to buying in any season - don’t let either be a driving force for your decision. The pros of buying in the winter are that there will be less competition for Lake of the Ozarks real estate. Prices may also be better on homes because owners are eager to get them off the market. Cons could include that weather could postpone a showing if there is ice or snow. Another con could be that you won’t get to see all of the summer beauty. Either way, take everything in stride and realize that there are pros and cons to every season.

Buy for the View

When buying a vacation home, it can be easy to get swept away with finding a home in the perfect location, or next to your favorite restaurant. However, we think that buying for the view is even more important than buying for location. Unlike your full-time home, where you’ll be making a daily commute, or need to be in a specific district, your vacation home is strictly for enjoyment. When you look out of the windows or sit on the balcony or back deck - make sure that the view is breathtaking! Of course, when buying a home at the Lake of the Ozarks, you may find both!

Tax Season Incentives

If you’re buying your vacation home on or before December 31, you can deduct the interest and property tax portions of your mortgage payment, points on your loan, and interest costs from your taxes. End-of-year tax benefits can be a great reason to buy a vacation home in the winter, and it can be helpful for paying off your Lake of the Ozarks home loan.

Keep Summer In Mind

It’s important to keep summer in mind when buying your vacation home in the winter. Because you aren’t seeing the home in the summer months, there may be aspects of the house you forget to focus on. Remember that you will be using your air conditioning a LOT during the summer months, and it most likely won’t be turned on during the winter months. Ask lots of questions about this part of the home. You can ask when was it replaced, how often was it serviced, and if there is paperwork to verify these maintenance tasks. You’ll also be spending a lot of time in the outdoor spaces. While they may not be in their prime during the winter, make sure you take a look at the patios, porches, and balconies of the home. You’ll also want to look over the dock if the home comes with one. Docks can be very susceptible to winter conditions, so look closely and ask your inspector to focus on it while checking the home.

Who Will Watch Your Home For the Winter?

Finally, the last thing to think about while buying a vacation home (and this applies in any season) is, who will be looking out for the property during the offseason? Empty home’s can be more susceptible to conditions if there is no one around to check for water leaks or power outages. The Lake of the Ozarks has many incredible companies who provide home watch services.

Ready to Start the Process?

If you want to buy a home at the Lake of the Ozarks, the first step is to get pre-approved. Team Lasson is here for you, and we can assist in making the mortgage process easy. Our team is here to answer all of your questions about buying a home, but also the Lake area. We live here full time and can make suggestions to help you get settled in. Buying a home starts with getting your mortgage, and we are here to help!

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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.

15-Year Fixed Rate Mortgage vs. 30-Year

When choosing to finance a new home at the Lake of the Ozarks, you will have several different decisions to make. One of those decisions will be the length of the term for the loan. The mortgage's "term" refers to the number of years that you will spend paying off the loan. You have two basic options for length of term to choose from: a 15-year term or a 30-year term. Let's take a look at the pros and cons of each type:

30-Year Fixed Rate Mortgage 

The 30-year fixed rate mortgage is the most popular, as it allows for lower monthly payments on the same loan amount. This means that if you know how much you can afford each month for a house payment, you can borrow more money to get a more expensive house by choosing a 30-year fixed rate mortgage. However, since you get more time to pay off the loan, there is a cost.

PROS: 

• Lower monthly mortgage payments  
• Easier to qualify 
• Ability to buy more with a smaller payment 
• Can always pay extra if you want 
• Good for those looking to invest money elsewhere

CONS: 

• More total interest over the life of the loan
• Higher interest rate 
• Build home equity very slowly 
• Harder to refinance
• You won't own your home outright for 30 years

15-Year Fixed Rate Mortgage 

While 30-year terms may be more popular, a 15-year fixed rate mortgage offers the best value. If you can afford to make higher monthly payments, this would be the better option in terms of saving money in the long term. This type of mortgage is also harder to qualify for as you're required to pay a substantially higher amount each month. Therefore, for some borrowers, this option may not even be a possibility.  

PROS: 

• Less total interest over the life of the loan.
• Lower interest rate 
• Build home equity faster 
• Own your home free and clear in half the time 
• Good for those close to retirement and/or conservative investors

CONS: 

• Higher monthly mortgage payments 
• Harder to qualify 
• May not be able to buy as much house as you want 
• You may have all your money locked up in your house 
• You could get a better return for your money elsewhere

Things to Consider

Mortgages aren't one size fits all. There are several things to consider when choosing the terms for your Lake of the Ozarks home loan. 

1. What can you afford?  

The monthly mortgage payment on a 30-year term will typically work out to be several hundred dollars less than the payment of a 15-year term. If you can't comfortably make the payments on a 15-year mortgage, then the 30-year term is the better option for you. You can always make extra payments when possible to pay it off faster, but you won't be locked into a price you can't afford each month.

2. How much do you have in your emergency fund? 

Once you choose the type of loan you're going to get, you'll be expected to pay that set amount each month. If you choose to go with the higher payment option in order to save money in the long run, your savings account needs to have enough money to cover you if something unexpected happens such as losing your job. If you don't have much in terms of an emergency fund, you're better off going with the 30-year fixed mortgage and building your savings with any extra money you have.

3. How do you feel about debt? 

Many people are strongly adverse to debt of any kind. Managing debt isn't easy and for many people staying out of debt completely is the way to go. It comes down to your appetite for risk. By choosing the 30-year fixed rate mortgage, your risk of not being able to make your payments is lower, but you will be in debt for a longer period of time.

4. What kind of personal discipline do you have? 

If you can afford the payments on a 15-year loan, but you’re concerned about the possibility of job loss or other major financial hits, you might be hesitant to commit to the higher payments. In that case, the better option might be the 30-year fixed rate mortgage. You can actually pay it off in 15 years if you want, but it will require strong personal discipline. Many people find it hard to pay extra on their mortgage at the Lake of the Ozarks when it's not mandated by the bank. According to the Federal Deposit Insurance Corporation (FDIC), 97.3 percent of people do not consistently pay extra on their mortgages. What the statistic doesn't show though, is how many of those people would have fallen behind on their mortgages had they been locked into a higher payment with the 15-year fixed rate mortgage.

5. What about the tax breaks? 

While a 30-year mortgage does offer more of a tax break, the reason is because you're paying significantly more in interest. For that reason, the tax breaks shouldn't be your only consideration when choosing the term for your mortgage loan. In the end, it all comes down to your personal financial situation to determine what term best suits your individual needs and ability.

To discuss the best loan options for your unique situation, give your Lake of the Ozarks mortgage lender a call at 573-746-7211. When it comes to your 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.

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

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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

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

Adjustable Rate Mortgages Explained

When it comes to choosing the right loan for your new home at the Lake of the Ozarks, there are many different options. From government loans to privately funded, fixed-rate to adjustable rate, you have a lot of things to consider. Which one is right for you? Read on about adjustable rate mortgages and talk to your mortgage lender at the Lake of the Ozarks to see what options you have for your specific situation.

What is an Adjustable Rate Mortgage? 

An adjustable rate mortgage (ARM) is when the rate of interest is adjusted periodically to reflect market conditions. Your monthly payments can then move up and down as those interest rates fluctuate. Most ARMs have an initial fixed-rate period, followed by a longer period where the rate changes at preset intervals. The interest rates charged during the initial period are typically much lower compared to fixed-rate mortgages.

When Does it Make Sense for an Adjustable Rate? 

Most homeowners that choose an adjustable rate mortgage base their decision on the fact that the initial interest rate is lower than a comparable fixed-rate mortgage. This can make your monthly payments on the same house much lower to start with. Once the fixed-rate period ends, there's the possibility of your interest rate going even lower, so your monthly payments could decrease. However, it could go the other way too and your monthly payments could increase. Interest rates are unpredictable, so you can't predict what you're payments are going to be after your initial fixed-rate period is up. If the home you're purchasing is simply a short-term investment or if you don't plan on owning it for longer than 5 years, an adjustable rate mortgage makes more sense than a fixed-rate.

Types of Adjustable Rate Mortgages

Adjustable rate mortgages come in many different forms, ranging from 1-month ARMs to 10-year ARMs. Obviously each comes with its own risks, so be careful when comparing the different Lake of the Ozarks mortgage options:

• 1-month ARM: First adjustment after one month, then adjusts monthly
• 6-month ARM: First adjustment after six months, then adjusts every six months
• 1-year ARM: First adjustment after one year, then adjusts annually
• 3/1 ARM: First adjustment after three years, then adjusts annually
• 5/1 ARM: First adjustment after five years, then adjusts annually
• 5/5 ARM: First adjustment after five years, then adjusts every five years
• 5/6 ARM: First adjustment after five years, then adjusts every six months
• 7/1 ARM: First adjustment after seven years, then adjusts annually
• 10/1 ARM: First adjustment after 10 years, then adjusts annually
• 15/15 ARM: First and only adjustment after 15 years

Talk to your Lake of the Ozarks mortgage lender today to see if an adjustable rate mortgage is right for you! We'll discuss your specific situation, your plans for the house and how much you can afford in a payment. When it comes to your financing needs, I'm here to help you with the details every step of the way! Give me a call at 573-746-7211 to discuss your options for a home loan at the Lake of the Ozarks!

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.