Final Days for a Mortgage in 2019

As 2019 comes to a close, it’s time to consider if you want to make any last-minute purchases before the year is up. When looking into investments, buying a vacation home at the Lake of the Ozarks may seem extravagant, but there are some great reasons why this could be a great choice for you. If you enjoy having investment properties or have been thinking about buying a second home at the Lake of the Ozarks, here are a few reasons why you may want to invest before the end of the year!

Low-Interest Rates

This fall brought some awesome interest rates and now is still as good of a time as any to make your investment strictly based on interest rates. You never know when they are going to change, and with as low as they’ve been lately, it could be an unexpected change. Even if rates increase an extra half-point, it can make a big difference in your monthly payments as well as the lifetime cost of your mortgage.

More Inventory, Less Competition

It’s not surprising that real estate sales tend to slow down a bit during the fourth quarter. This can be for many reasons, sometimes people get busy with school and holidays, the inclement weather makes it less appealing to venture out and look and homes, and for many housing markets, it’s just a slower season. This, however, can be great news for you! With fewer people looking for homes, you have more to choose from, and may even find a home faster than you had expected.

Tax Deductions

Buying a home comes with several different types of tax benefits. One of the biggest is being able to deduct the mortgage interest from your taxes, you may also be able to reduce the amount of federal income tax withheld from your income, which could result in a higher paycheck each month. These are things that you can speak with your financial advisor about, but some closing costs and property taxes can also be tax-deductible, as well.

Low Down Payment Options

20% has been considered the magic number when planning a down payment for your mortgage. Anything less and you may end up paying an additional cost in the form of private mortgage insurance (PMI). However, there are now some options for borrowers that qualify, and even with less than 20%, you may come out ahead. Your interest rate may be affected, but you’ll never know until you start the process.

Mortgages at the Lake of the Ozarks

There is still a timeline for getting a mortgage started and finished, so if you need to get it finalized by the end of the year, is time to get started! Visit our website at www.yourlakeloan.com to fill about your pre-approval information, and be sure to get in contact with us about your timeline. We look forward to working with you, and helping you purchase the vacation home of your dreams!

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.

7 Tax Deductions Every New Homeowner Should Be Aware Of

Along with the new year comes tax season. Did you know that as a homeowner at the Lake of the Ozarks you have the opportunity to take some deductions? In today's blog, we discuss some of the possible tax deductions you might be eligible for. Keep these in mind when preparing your taxes this year.

1. Mortgage Payment Interest Deduction

When you own a home that you're paying a mortgage on, you can deduct the interest paid on up to $1 million worth of loans. This deduction is particularly beneficial to new homeowners because you pay more interest in the beginning. In order to claim this deduction on your tax return, you'll need to file an itemized tax return. Your loan provider should send you a Form 1040 shortly after the tax year ends that shows how much you've paid in interest for that year.

2. Mortgage Points Deduction

Many homeowners overlook the deduction of points that may have been paid to secure the mortgage loan in the first place. Since mortgage points are prepaid interest, they also qualify for a deduction. While interest rates are currently low, buying points is still one of the best tax breaks available to new homeowners. The return on investment is two-fold because you get to deduct the cost of the points and the amount paid in interest in the same year as the home purchase.

3. Tax-Free IRA Withdrawals

As a first-time home buyer, you are able to pull funds from an IRA to help come up with the downpayment on your home without paying the typical penalty. Those funds can then be used to cover a downpayment, the closing costs and other expenses associated with becoming a homeowner for the first time.

4. Real Estate Tax Deduction

Taxpayers who itemize their deductions are also eligible to deduct real estate taxes paid on both their primary and secondary residences, as long as they were paid within the year for which you're filing. This deduction is only available for homes you own; you can't claim taxes you paid for someone else's property.

5. Home Improvements Deduction 

There's a possibility that you can claim a deduction for home improvements made over the past year as well. You can qualify for these deductions one of two ways. First, if you use a home equity loan or other loan secured by your home to finance the improvements, those loans will qualify for the same mortgage interest deduction discussed above. Second, when you sell your home, you can include the cost of improvements when determining your capital gains or losses on the sale. If your home sells for more than you paid for it, that extra money is considered taxable income; however, you can lessen your tax liability by writing off those home improvement costs. Make sure you keep track of any home improvement costs by keeping all your receipts so you can prove the costs you claim.

6. Home Office Deduction

If you work from home, you can take a deduction for the room or space used as your office. This can even include working from your garage if you have your own repair business. The deduction can include expenses like mortgage interest, insurance, utilities and repairs, and it is calculated on the percentage of your home devoted to your business activities. Just make sure that the workspace information you provide to your tax preparer is as accurate as possible. There are specific requirements for taking this type of deduction.

7. Home Energy Tax Credits 

When you take steps to make your home more energy efficient, you can offset those improvement costs with the Residential Energy Efficiency Property Credit. You could save up to 30% of the total cost of installing certain renewable energy sources in your home. Keep all receipts and contracts from the installation to prove your claim on your tax return.

Be sure to talk with your tax professional to see what tax deductions you might qualify for. If you have yet to become a homeowner, talk to a mortgage lender at the Lake of the Ozarks about financing. Maybe next year you can take advantage of these deductions and credits, while also living in your dream home at the Lake of the Ozarks! For all your Lake of the Ozarks mortgage needs, give us a call at 573-746-7211.

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.

4 Facts About Mortgage Interest Tax Deductions

Tax time is upon us and you only have one month left to get them done! When preparing your taxes, be sure to look for any deductions that you may be able to take. As your Lake of the Ozarks mortgage lender, I want to make sure you're aware of the tax deductions related to your mortgage that you may be eligible for. Take a look at these 4 things you need to know about mortgage interest tax deductions.

1. Deducting Mortgage Interest is Not for Everyone. 

The majority of American taxpayers don't itemize their deductions. They just claim their standard allowance and move on. The numbers show that many, maybe even most, homeowners don't deduct their mortgage loan interest. While that may sound crazy to some, for those homeowners with lower to average incomes, it may actually make sense not to itemize. The advantages of itemizing seem to increase with wealth. Make sure that it makes sense for you to itemize your deductions before deciding to do so on your own taxes.

2. Deducting for Two Mortgages. 

That vacation home at the Lake you've been dreaming of may be more affordable than you think. You might be able to take deductions for two mortgage loans. You can still qualify even if it's a timeshare and/or you rent it out for most of the year.  There are some key rules when doing this though. First, for tax purposes, you're only allowed to designate one property as your main home and the other as your second home. If you rent out the second one, you must spend at least 10% of the rental days each year living in it yourself. If you don't rent it out however, you don't have to spend any time there. Talk to your mortgage lender at the Lake of the Ozarks to see if this is an option for you.

3. Deducting Your Mortgage Points. 

When obtaining a mortgage loan at the Lake of the Ozarks, you incur a few more costs than just the actual loan amount. Some of these extra costs are usually deductible as well. There are two categories: mortgage loan origination fees and maximum loan charges, and loan discount or discount points. Sometimes points can be deducted in full during the year you make your purchase. However, the IRS lists 9 rules to comply with in order for that to happen. If you can't meet those requirements, your points deductions will be spread out over the life of the loan. 

4. Deducting Mortgage Insurance Premiums. 

In some cases, you can even deduct your mortgage insurance premiums. The IRS regards qualified mortgage insurance premiums as home loan interest, making it typically deductible. This is provided that your mortgage insurance contract is dated after a certain date and your income is below a certain level. Check the IRS website for updated numbers on the tax year you're filing for. Funding fees on VA mortgages and guaranteed fees on Rural Housing Service loans also count as mortgage insurance premiums and can be taken into account for your deduction. 

If you're considering itemizing your taxes to take advantage of these homeowner deductions, give me a call at 573-746-7211 with any questions about your personal mortgage situation. When it comes to your home financing needs, I am 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.