Owning vs Renting Your Home

Is it better to buy your home or rent one? This question is one that gets asked a lot. While the answer depends on a variety of factors, buying a home at the Lake of the Ozarks definitely has its benefits. Keep reading to learn more about the benefits of homeownership that should be considered before choosing to rent instead of buy.

Benefits of Owning a Home

Just like with anything, there are pros and cons to owning a home. However, don't disregard the idea before getting all the facts. It could be worth your time to discuss the possibility of owning your own home with a mortgage professional at the Lake of the Ozarks. Below are some of the common benefits of homeownership.

1. Protection from Rising Rent. 

Rent prices continue to rise year after year. In some areas of the country, your monthly mortgage payment could actually be less than what you're currently paying in rent. When you choose to purchase a home, you have the ability to lock in your interest rate and pay the same amount every month for the next 30 years. When you rent, you never know what your rent could increase to the next time your lease is up for renewal. Use our online calculator to compare the estimated costs of buying vs renting a home: https://fsbfinancial.com/calculators-and-forms/.

2. Building Equity. 

When you rent your home, you're essentially paying someone else's mortgage. When you own your home, you are building equity. When it's all said and done, you have something to show for all those monthly payments you've made. You can continue to live in that home or turn around and sell it. The economic stability associated with managing a mortgage, along with the equity you're building in your home, are two of the biggest financial reasons to buy instead of rent.

3. Tax Advantages. 

Another benefit of homeownership is the tax advantages. While things are constantly changing with the tax laws, there are significant tax advantages to homeownership, such as property tax deductions. Over time this, coupled with the equity you're building, will add up to significant savings.

4. Making It Your Own. 

One of the biggest complaints about renting is that you aren't able to make the space you're own. The owner of the property, whether an individual or a management company, will most likely have some guidelines in place for what you can and cannot do. For example, you may not be able to paint the walls a color you desire, knock out a wall to make more space, or add on a deck to enjoy the outdoor space. When you own your own home, you have the freedom to do whatever you want with it.

Buying a Home at the Lake of the Ozarks

For some people, the concept of owning their own home seems just out of reach. The reality is that there are a lot of misconceptions about buying a home at the Lake of the Ozarks. A variety of programs are available to help first-time home buyers get into a home with lower down payments than were required in the past. The true answer to the question on whether buying or renting is the better option depends on your personal situation and needs.

If you see the benefits of homeownership and are considering purchasing a home at the Lake of the Ozarks, give us a call at 573-746-7211 today. As your Lake of the Ozarks mortgage lender, I'm here to work with you every step of the way. I'll discuss your options, offer competitive interest rates and back it up with the first-class service you deserve. For all your Lake of the Ozarks home financing needs, trust our team!

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 the Mortgage Payment Process

When you purchase a home, unless you're one of the lucky few that can afford to pay cash, you're going to need to take out a home loan. Your mortgage lender at the Lake of the Ozarks will discuss your options with you, offer competitive interest rates and eventually settle on a monthly mortgage payment. While many people pay their mortgage every month, not everyone understands how that payment process works. Keep reading to learn about amortization and how paying off your mortgage works.

How Mortgage Loans Are Paid Back 

Mortgage loans are paid off through what is known as a "mortgage amortization process." Over the life of the loan, each payment is first applied to the interest accrued during the current payment period, and then to reducing the outstanding principle amount. With this payment schedule, after 30-years, you'd end up paying close to double your initial mortgaged amount. What looks and seems like a low rate could add up to hundreds of thousands of dollars over the course of thirty years. Therefore, if you're financially capable, you might consider paying off your mortgage faster. Talk to your trusted Lake of the Ozarks mortgage lender to see if there are any penalties for paying off your mortgage early.

Should I Pay Off My Mortgage Faster?

Who wouldn't want to pay off their mortgage faster? Living a debt-free lifestyle is something many Americans strive for. However, it's not always possible for everyone. The question shouldn't be, "do I want to pay off my mortgage faster," but rather, "can I pay off my mortgage faster?" Do you have the financial ability to set aside more money for a larger mortgage payment each month? Keep in mind that your mortgage likely has a lower interest rate than other debts such as credit cards. Determine what the best use of your money is before choosing to pay off your mortgage faster. Paying off your mortgage faster also has tax implications on your mortgage deduction. For advice on how to pay off your mortgage faster, check out our previous blog titled, "How to Pay Off Your Mortgage Faster."

If you don't currently have a mortgage you're working to pay off, but are considering purchasing a home at the Lake of the Ozarks, give me a call at 573-746-7211. Together, we will discuss your options, I'll offer competitive interest rates and back it up with the first class service you deserve. With my help, you'll be in your dream home at the Lake of the Ozarks in no time!

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

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 Why Mortgage Rates Fluctuate

When applying for a mortgage loan at the Lake of the Ozarks, one of the first things you want to know is what rates are available to you. Mortgage rates are constantly changing, but why? In today's blog, your Lake of the Ozarks mortgage lender addresses how mortgage rates are determined and what makes them move up or down.

How Mortgage Rates are Determined

While there are a variety of different factors that affect mortgage rates, the movement of the 10-year treasury note yield is said to be the best indicator of whether mortgage rates will rise or fall. Mortgages are typically packaged as 30-year products; however, most mortgages are paid off or refinanced within 10 years. The 10-year treasury note yield is the rate of return that you receive when you invest in this 10-year note. Essentially, you're loaning money to the U.S. government and they're paying you to do so. The yield is important, because as mentioned above, it is the benchmark that guides other interest rates, with the exception of adjustable rate mortgage which follow the federal funds rate. However, even the Federal Reserve watches the 10-year treasury note yield before making its decision to change the federal funds rate. Due to the fact that the 10-year treasury note is sold at an auction, it indicates the confidence that investors have in economic growth.

The Cause of Rates Rising or Falling

Mortgage rates fluctuate over time as a result of the interaction of the supply and demand for money in the economy.When the economy is growing, the demand for money increases and therefore, interest rates move upward. When economic growth slows or stops, interest rates move back down. One key factor is inflation. Inflation increases prices and deteriorates spending power in the economy, which in turn slows growth. For future homeowners, this means increased interest rates, making home buying more expensive. Economic activity is measured across the nation and reported to the Federal Reserve Board. They then take that information to determine whether they want to try to increase interest rates to control growth or decrease rates to spark growth and encourage borrowing. While the federal reserve doesn't directly set the interest rates, they can indirectly influence them by increasing or decreasing the money supply. In addition to regular monitoring by the feds, the financial markets establish benchmarks to understand where interest rates might be headed.

With that being said, the federally determined rates aren't necessarily available to everyone. Each borrower's situation is different, and other factors, such as your credit, also come into play. To find out what mortgage interest rates you could qualify for, contact the best mortgage lender at the Lake of the Ozarks at 573-746-7211. I'm here to work 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

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.

Handling Your Mortgage During a Divorce

Getting a divorce is not an easy task, and there are a lot of things you'll have to work through. If you're going through a divorce, you may be wondering how to handle the mortgage payment. Since your house is likely your largest asset, it's probably one of the most contentious aspects of the divorce proceedings. In today's blog, your Lake of the Ozarks mortgage lender offers a few options for you to consider.

1. Sell the Home.

The first and probably most obvious option is to sell the house and split the profits between the two of you. Choosing to sell is probably the easiest way to get out of this large payment you're both equally responsible for. While you would still need to determine who will handle the mortgage payments until the home sells, this is a short-term challenge rather than a long-term one. Once the home sells, you and  your spouse would be able to use any money made to settle your combined and divorce-related debts and start over fresh financially. In today's market however, that's easier said than done - which is why it's good you have other options as well.

2. Refinance the Mortgage Into One Person's Name.

In some cases, refinancing the loan with only one person's name on it may be the best option. After the refinance closes, only that spouse would be responsible for the monthly mortgage payments. If necessary, you could do a cash-out refinance to pay the departing individual their portion of the equity. Unfortunately, this scenario only works in certain cases. In order to qualify for a refinance, some terms need to be met. Income is a large determining factor in the mortgage approval process, and if your income alone is not enough to cover the mortgage payment, you may have to sell the house. In addition, your credit score and current equity in the home could come into play. If you're going through a divorce and considering a refinance, be sure to talk over your options both with your attorney and your mortgage lender at the Lake of the Ozarks.

3. Keep the Home and the Mortgage.

In some cases, selling or refinancing the home may not be an option. In this case, you have the choice to keep the home and the mortgage intact. Both parties would remain on the loan and both would be responsible for the payment. In this situation, it's important that your divorce agreement states who is responsible for the monthly payment. The agreement could state that you are responsible for the payment, but that your ex-spouse and children will continue to live in the house. However, the agreement could state that each party is responsible for exactly half of the payment each month. Unfortunately, in this situation, since both names are still on the loan, if the person responsible for the payments misses a payment or is late on a payment, your credit can still be affected. When it comes to dealing with your mortgage during a divorce, this option is the most risky.

If you're going through a divorce or contemplating divorce, obviously your first step should be to talk to a lawyer. After that, I'm here to answer any questions you may have about qualifying for a Lake of the Ozarks mortgage loan on your own. Give me a call at 573-746-7211 to discuss your options. I'm here to work with you every step of the way, and back it up with the first class service you deserve!

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.

7 Best Practices for First-Time Home Buyers

For most first-time home buyers, purchasing a home with cash isn't an option. Therefore, you're going to need to secure a mortgage loan. In order to make that process smooth and simple, the best mortgage lender at the Lake of the Ozarks has put together a list of best practices for you to keep in mind:

1. Pay Off as Much Debt as You Can.

By paying off as much debt as you can before applying for a mortgage, you'll be able to keep your debt-to-income ratio low. Lenders will look at your income in comparison to everything you owe, like student loans, car payments, credit card debt, etc, to determine how much you can afford to borrow.  

2. Develop Good Credit Habits.  

Your credit score is a huge determining factor when it comes to getting a great mortgage loan at the Lake of the Ozarks. Missing payments on student loans or habitually paying your bills late will negatively affect your credit score. In turn, that can make securing a home loan more expensive or even impossible.

3. Consider Consolidating or Refinancing Student Loans. 

Sometimes paying off your debt, such as student loans, is nearly impossible to do before you're ready to purchase your first home. If you can't pay them off, look into getting the payment lowered. You'll have to make the decision on whether or not spreading out your loan payments over a longer period of time is worth it to get a home sooner.

4. Keep a Solid Work History. 

Your work history is a good indicator of how your income will be. If you can't hold a job for more than a few months, a lender is going to have a difficult time loaning you money. Your Lake of the Ozarks mortgage lender needs to know that you are going to continue to have a large enough income to cover the monthly mortgage payments. While you can't change the past, make sure to keep your current job until after you have closed on your new home.

5. Document Everything. 

Throughout the mortgage process, you're going to be required to document everything. Get in the habit now of keeping track of tax returns, bank statements, brokerage statements and any other documents that verify the source of all your money. You'll also be required to verify your employment and income, once at the beginning of the process and again just before the closing. 

6. Don't Apply For New Credit. 

One of the worst things you can do to jeopardize your mortgage approval is to apply for new credit. It can be tempting to purchase new furniture for your new home on your credit card. Or maybe you think you'll have enough cash left over for a down payment on a new car. Once the mortgage process is underway, refrain from financing any new purchases until after your mortgage is complete.

7. Save Cash for Upfront Costs. 

While you're getting a loan for the cost of the house itself, you're going to need some cash to cover other expenses that come with purchasing a home. In addition to your closing costs, you're going to need to pay for a home inspection, an appraisal, a survey and city, county or state transfer taxes. Most lenders will also ask for at least a year's worth of homeowners insurance and property taxes upfront.

As a first-time home buyer, you probably have a lot of questions and I'm here to help! When it comes to your Lake of the Ozarks home 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 

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.

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.

6 Common Problems that Can Arise During the Mortgage Process

As the best mortgage lender at the Lake of the Ozarks, it's my job to make the mortgage process as smooth as possible. Unfortunately, there are a few issues that can arise that are out of our hands. Let's take a look at these common issues and how we can try to avoid them during your Lake of the Ozarks home loan process:

1. Home Inspection. 

While it's rare for the borrower to back out of the deal due to something found during inspection, it does happen occasionally. Unfortunately, there's not much the lender or real estate agent can do if there's an unfixable problem with the property. Many times it's something that could have been disclosed early on, but wasn't. The best way to avoid any issues like this is to ask the seller a ton of questions during the beginning stages, to ensure everything is disclosed as early as possible during the transaction.

2. Appraisal Valuation.

Another common issue that can come up is if the home is appraised higher or lower than the valuation in the initial offer. This problem is much less likely to occur in popular markets, and typically only comes up when there aren't comparable sales. If you're in the market for a 4 bedroom, 3 bath single family home you shouldn't have this issue. It mainly occurs when you're in the market for a million dollar home, which is harder to find something to compare it to.

3. Application Issue. 

While some loan closings are prevented due to the actual property, more often than not the issue arises from the loan application. Sometimes the documentation doesn't match the information provided on the original application. One common error on the application is the amount of qualified income of a self-employed borrower. The income listed on the application needs to match what is listed on the borrower's tax return. Obtaining a pre-approval is a great way to avoid some of the application issues that could arise later in the game.

4. Tax Deductions. 

As stated before, the income on the application has to match what's listed on the tax return. While it may have seemed like a great idea to take all those deductions, when it comes to applying for a mortgage that's not always the case. You can't just add those pieces back into the amount of income you make. You have to go off what your tax return says, whether you actually made more than that or not.

5. Borrower's Credit. 

One of the main issues that can arise during the underwriting process has to do with the borrower's credit. If the borrower has a bad track record for repaying money loaned, the underwriting is going to find that out. The borrower's credit history will be thoroughly gone over and the underwriter may even contact past or present creditors. In addition to credit history, the underwriter is going to look at the borrower's debt-to-income ratio. If the borrower has too much debt relative to their income, problems will arise during the underwriting process. The debt-to-income ratio is one of the most important factors in mortgage underwriting.

6. Bad Timing. 

Mortgage loan closings can also fail due to timing issues caused by last-minute changes. These seemingly simple changes could require the lender to issue a new disclosure statement, therefore delaying the closing. If the seller included a contingency that the closing must occur by a specific date, such delays can be problematic for both the buyer and the seller. Another timing issue can occur when the borrower does something to alter his or her financial standing. Buyers should avoid making any other large purchases or switching jobs until after the closing has occurred.

The best way to avoid these problems is to disclose as much information as you can from the beginning, even if you think it might not be necessary. It's better to disclose too much, than not enough. Be sure to ask your Lake of the Ozarks mortgage lender and your real estate agent as many questions during the beginning of the process and make sure to get a pre-approval before moving ahead with an offer on a house. If you're considering purchasing a home at the Lake of the Ozarks in the near future, give me 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

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.

Getting a Mortgage When You're Self-Employed

Being your own boss can have its advantages, except when it comes to purchasing a home. While it's not impossible for the self-employed to get a mortgage loan at the Lake of the Ozarks, it can be more difficult. It definitely requires advanced planning. Here are a few tips for the self-employed, to help you through the process:

1. Showing Proof of Income. 

Anyone applying for a mortgage has to show proof of income, showing accurate proof of income though, can be difficult for the self-employed. You also want to make sure your income is relatively consistent; while lenders can ignore seasonal spikes, they don't want to see a decrease in income from the previous year. This leads into the next point about choosing your deductions wisely, as these deductions will affect your income that is reported.  

2. Don't Take Too Many Deductions. 

If you know you're going to apply for a mortgage in the next two years, be careful what deductions you take. The more deductions you take, the lower your income looks on paper. Keep in mind that your Lake of the Ozarks mortgage lender is going to go by what the IRS forms say, not what you say you brought home. While taking deductions for your business has its benefits come tax time, it can pose a huge disadvantage when it comes to getting a home loan.  Random business expenses can come back to haunt you in the form of a lower taxable income, which results in a harder time qualifying for a loan.

3. Maintain a Good Credit Score. 

Whether you're self-employed or not, your credit score plays a big role in determining your loan approval. You don't want to jump through all the hoops of proving your income to find out your credit score isn't going to cut it. Make sure to maintain a good credit score in the months leading up to applying for a mortgage, and even after you've applied. Be sure to pay all your bills on time, use as little debt as possible, and don't open too many new credit accounts, especially in the 6-12 months before you apply for a mortgage.

Other tips for anyone looking to apply for a mortgage will also apply to those who are self-employed. While you may have to jump through a few extra hoops, the process of applying for a mortgage is the same as that of someone working for someone else. If you're self-employed and looking to obtain a home loan at the Lake of the Ozarks, give me a call at 573-746-7211. I will work with you every step of the way, providing the first class service you deserve!

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.