Your Lake of the Ozarks Mortgage Lender: terms associated with mortgage loans

Thursday, July 11, 2019

Learning Mortgage Jargon

Vocabulary surrounding mortgages can confuse the best of us. Whether you have purchased many homes, or you’re buying your very first vacation home at the Lake of the Ozarks, having a helpful guide is always welcome. Team Lasson wants to make your mortgage process as easy as possible. If that means you need a quick guide to language and verbiage that you may hear throughout the mortgage process, then that is what you will get!

Adjustable Rate Mortgages (ARM)

This is a loan that has an initial fixed-rate period, generally 3, 5, 7, or 10 years. After the fixed-rate period is over, your interest rate may change once per year, either up or down depending on the current market conditions.

Amortization

This refers to a gradual reduction of a debt over the term of the loan. Amortization occurs through the repayment of principal.

Annual Percentage Rate (APR)

The APR refers to the yearly cost of a mortgage including interest and other expenses or charges. Those additional charges could be private mortgage insurance and points expressed as a percentage.

Appraisal

This will refer to a written estimate of a property’s current market value.

Closing

Hooray! This is the conclusion of your real estate transaction. The legal documents will be signed, the funds are disbursed, and it’s time to get your keys.

Closing Costs

This refers to expenses over and above the cost of the property and may include items like:

Title insurance
Appraisal
Processing
Underwriting
Surveying Fees

Pre-Paid Costs

This is typically your home owner’s insurance premium and any escrow amounts for the insurance and property taxes put in your escrow account

Credit-Report

This will be a report from an independent agency which details the credit history, including previous, and current debt to help determine your creditworthiness.

Credit Score

This is a mathematical formula that will predict the creditworthiness of an applicant. It’s specifically based on credit card history, outstanding debt, type of credit, bankruptcies, late payments, collection judgments, too little credit history, and too many credit lines.

Warranty Deed

This is the legal document that transfers the property from one owner to another.

Down Payment

A down payment refers to the difference between a property’s purchase price and the amount of financing you are obtaining.

Earnest Money

This is a deposit made by a buyer toward the down payment to show good faith when the purchase agreement is signed. This is typically written to the title company to be held in escrow until closing.

Equity

This refers to Tthe monetary difference between your mortgage balance and the actual market value of your home.

Fixed-Rate Mortgages

This is a mortgage with an interest rate and payment that will not change over the term of the loan. If the market interest rate falls below your fixed rate, it’s time to contact Team Lasson at the Lake of the Ozarks to discuss the benefits of refinancing.

Principal

The balance (not counting the interest) owed on a loan is called the principal. A 30 year fixed rate mortgage is amortized so that the longer you have the loan, the more principal you reduce with each payment.

Title Search

The is an examination of municipal records to ensure that the seller is the legal owner of a property, determine any easements that may exist, as well as to make certain that there are no liens or other claims against the property.

Underwriting

In mortgage lending, this is the process of determining the risks involved in a particular loan and establishing suitable terms and conditions for the loan.

Ready to Buy a Home?

Team Lasson is ready to help you make your homeownership dreams a reality with mortgages at the Lake of the Ozarks. From first time home buyers to luxury vacation homes at the Lake of the Ozarks, we are ready to assist. Visit our website to learn more about our company, or you can apply for your mortgage right there! Now is a great time to buy a home, and Team Lasson is ready!

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.

Monday, June 24, 2013

Understanding the Terms Associated with Closing on your Lake of the Ozarks Home

For the past two weeks we have been covering some terms that we think will be helpful to you as your go through the process of getting a Lake of the Ozarks Mortgage Loan. Understanding the following terms will not only build your confidence, but it will also create a smoother process for you and your Lake of the Ozarks Mortgage Lender!

Appraisal - A written analysis prepared by a qualified appraiser and estimating the value of a property.
Appraised Value - An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.
Closing - A meeting held to finalize the sale of a property. The buyer signs the mortgage documents and pays closing costs. Also called "settlement."
Closing Costs - These are expenses - over and above the price of the property- that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the area country and the lenders used.
Down Payment - Part of the purchase price of a property that is paid in cash and not financed with a mortgage.
Equity - The amount of financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on the mortgage.
Interest - The fee charged for borrowing money.
Lock-In Period - The guarantee of an interest rate for a specified period of time by a lender, including loan term and points, if any, to be paid at closing. Short term locks (under 21 days), are usually available after lender loan approval only. However, many lenders may permit a borrower to lock a loan for 30 days or more prior to submission of the loan application.
Origination Fee - A fee paid to a lender for processing a loan application. The origination fee is stated in the form of points. One point is 1 percent of the mortgage amount.
Points - A point is equal to one percent of the principal amount of your mortgage. For example, if you get a mortgage for $165,000 one point means $1,650 to the lender.Points usually are collected at closing and may be paid by the borrower or the home seller, or may be split between them.
Pre-Approval - The process of determining how much money you will be eligible to borrow before you apply for a loan.
Principal - The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage.
Private Mortgage Insurance (PMI) - Mortgage insurance provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require MI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.

We realize that you may need additional information and we would love to help you understand the process of getting a Loan for you Lake of the Ozarks Home! Please give us a call and we can set up a time to speak with you! You can call me direct at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com.

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