The Pros and Cons of Taking Out a Second Mortgage

As a homeowner, you most likely already have a mortgage that you're currently paying. If you've been paying on it for awhile, you've probably built up some equity in your home. If so, you now have the option of taking out a second mortgage at the Lake of the Ozarks. Taking out a second mortgage definitely has some financial benefits, but those don't come without risks to you and your property. As your Lake of the Ozarks mortgage lender, I'm here to make sure you know the pros and cons of taking out a second mortgage before making the decision.

What is a Second Mortgage? 

Basically, a second mortgage is using your home equity as collateral for a loan. Banks and lenders typically call this a home equity loan. The amount you are able to borrow on your home will depend on how much equity is in your home. This is calculated by estimating the market value of the property and subtracting the payments made towards your first loan so far.

Why Get a Second Mortgage? 

A second mortgage can be used for anything from funding a child's education to making repairs on your home. Some people even use the cash to start a business. However, if you are going to take on additional debt, it should be for something worthwhile. For example, you probably don't want to take out a second mortgage to go on vacation. Those types of purchases are better to slowly save up for. Another option for taking out a second mortgage could be to avoid Private Mortgage Insurance.

The Pros

1. Tax Deductions - Mortgage interest of up to $100,000 of the principal for married couples and $50,000 for singles is deductible on your tax return.

2. Liquidation of Equity - By taking out a second mortgage, you have the ability to liquidate the equity in your home. If you're on the verge of bankruptcy, you can get access to cash in order to pay off high interest loans and back taxes.

3. Lower Interest - The interest payable on a home equity loan is usually lower compared to that of personal loans or credit cards, because it offers the lender the security of your house.

The Cons 

1. Puts House at Risk - While a second mortgage does provide you with the cash you want, it comes at the cost of putting your house up for grabs in the event that you cannot make the payments.

2. Upfront Fees - In order to take out a second mortgage, you have to pay for an appraisal on your home, loan origination fee and other legal fees associated with an ordinary loan. Although there is a lower rate of interest, there are other costs to consider.

3. Debt Management - A second mortgage is not the answer for everyone trying to get out of debt, especially those that have a rough time managing debt. You have to fix the root of the problem first; just trading out one type of debt for another isn't going to help.

If you're considering a second mortgage or even just a first mortgage at the Lake of the Ozarks, give me 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 different options, offer competitive interest rates and back it up with the 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.

Closing Costs: The 411

You've decided to purchase a new home and now it's time to think about how much money you'll need upfront to make it happen. When you get a mortgage at the Lake of the Ozarks, you will need to pay fees charged by lenders and third parties related to the purchase of the home. These fees are in addition to the down payment. Here's the 411 on these "closing costs":

What are Closing Costs? 

Fees paid at the closing of a real estate transaction are called closing costs. The closing is when the title to the property is conveyed to the buyer. These costs can be incurred by either the buyer or the seller, but are typically paid by the buyer. They typically range from 2-5%  of the purchase price.

What Fees Make Up the Closing Costs? 

Depending on where you live and the type of property you buy, the closing costs can vary widely. However, closing costs will often include the following:

• Credit Check Fee
• Loan Origination Fee (charged by lenders for processing the paperwork) 
• Attorney's Fees
• Inspection Fees
• Discount Points (fees you pay to lower your interest rate) 
• Appraisal Fee
• Survey Fee (covers the cost of verifying property lines)
• Title Insurance (protects the lender in case the title isn't clean)
• Title Search Fees (pays for background check on the title the make sure there are no unpaid mortgages or tax liens on the property)
• Escrow Deposit
• Pest Inspection Fee
• Recording Fee (paid to a city or county to record the new land records) 
• Underwriting Fee (covers the cost of evaluating a mortgage loan application) 

The "Good Faith Estimate"

Within 3 days of applying for a loan, your lender is required by law to provide you with a "good faith estimate" (GFE) of what the closing costs on your home will be. However, these are just an estimate and many of the fees listed on the GFE can legally change by up to 10%. Within a day of your closing, the lender should give you a HUD-1 settlement statement, which will outline the final closing costs. You can then compare this to your GFE and ask for an explanation on any changes.

When it comes to your financing needs, I'm committed to working with you every step of the way. If you're planning on buying a home at the Lake of the Ozarks in the near future, give our office a call at 573-746-7211. As your Lake of the Ozarks mortgage lender, 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.

Buying a Home vs. Renting One

Since the financial crisis in 2008, prospective homeowners are looking more closely at the costs and benefits buying a home. However, the drive to become a homeowner is still very strong. While homeownership may make sense financially, there are an assortment of social and family reasons that also come into play. When deciding whether or not homeownership is right for you, consider these points:

REASONS TO BUY

1. Equity 

When you're renting, you are helping your landlord gain equity in the property. On the other hand, if you have a mortgage at the Lake of the Ozarks, you're increasing your own equity.  If you intend to stay in the same home for at least 5-7 years, the costs of purchasing it are more likely to be offset by accrued equity and increase housing value. Plus, you can refinance your home mortgage if more favorable rates become available.

2. Tax Deductions

When tax times rolls around, owning your own home has its benefits. You can deduct both mortgage interest, as well as your property taxes. Also, if you work from home you may be eligible to take deductions for a home office and portions of utilities. 

3. Freedom

When you own your own home, you have the freedom to do whatever you wish to it. You can hang as many photos on the walls as you want. You can paint the walls any colors that you want. You can even remodel an entire room, knocking down walls and installing new appliances. You don't have to ask your landlord's permission before making changes to your space.

4. Maintenance

Maintenance can be considered both a pro and a con when it comes to owning your own home. On the one hand, you have the freedom of fixing the issue yourself or hiring a family friend if you want. If you're renting, the landlord makes the decision on who fixes it and its on their terms. You may have to pay a monthly fee for maintenance work when you rent, but when you own your own home you have to pay for any and all maintenance issues that arise.

REASONS TO RENT

1. Flexibility 

Do you know where you want to live on a long-term basis? Renting allows you to "try out" an area before committing to it. Unless you are certain about where you want to live, you might want to take some time to research and discover the area.  Once you've experienced living there on a temporary basis, you can make a better decision about committing to homeownership there.

2. Uncertainty 

There's a lot of uncertainty in our world today. If you think you might need to move in the near future, maybe for career or other reasons, you might want to rent. Income changes can also affect your ability to borrow, as well as impact your ability to pay your mortgage payments. Buying ties you down both physically and financially. 

3. Utilities

In many cases, your landlord will include your utilities with your monthly rent. Water, sewer and garbage are most commonly included. However, some places even have deals where electricity, cable and internet are also provided in your monthly fees. When you own your own home, you have to pay for all those expenses, meaning you're responsible for getting those bills paid on time. 

As you can see, there are many pros and cons to both renting and buying. The decision on which is actually better completely depends on your personal situation and needs. If you're considering purchasing a home at the Lake of the Ozarks, give me a call at 573-746-7211. As your Lake of the Ozarks mortgage lender, I will run through the numbers with you and help you make the right decision about a new home purchase.

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.

Celebrate Labor Day Weekend with Fireworks!

Labor Day Weekend, the last big weekend here at the Lake of the Ozarks is here! From fireworks to food, there will be plenty of fun for the entire family this holiday weekend. Your Lake of the Ozarks mortgage lender wishes you a great Labor Day Weekend. Be sure to check out some of these great fireworks displays!

Labor Day Fireworks at Lake of the Ozarks

Fireworks Fun Fest at Old Kinderhook 

Friday, September 4th

Free festivities at Old Kinderhook include clowns, bounce houses, face painting, games for children and adults and free live entertainment from 5-9 PM. Food and drinks will be available for a small cost. Call for more details: 573-317-4314. 

Bear Bottom Resort

Saturday, September 5th

Sunday, September 6th

Both shows start at 9:45 PM. View by land at Bear Bottom Resort or by water at the 38 MM. Parking is limited, so arrive early. Call for details: 573-374-6905

Village Marina and Yacht Club

Saturday, September 5th

Fireworks start around 8:30 PM or Dusk. View by land at Boathouse Lakeside Bar & Grill or by water at the 3 MM. Call for details: 573-365-1800. 

Tan-Tar-A Resort 

Sunday, September 6th

Fireworks show will run from 8:30-9:30 PM. Viewing by land on the Tan-Tar-A property is reserved for resort guests only. You can view by water at the 26 MM on your own boat or aboard the Tropic Island Cruises Yacht. Call for reservations and details: 573-348-0083. 

The Lodge of Four Seasons

Sunday, September 6th

The event will be held from 6-10 PM, with a BBQ and carnival prior to the fireworks (weather permitting). Cost is $22 for adults and $12 for children, with children 5 and under free. Paid non-hotel guests must be on the property before 8 PM. You can also view by water at the 13 MM from your boat or aboard the Celebration Cruises Yacht. Call for reservations and details - 573-480-3212.

The Lake of the Ozarks has a wonderful sense of community and always has fun events going on all year round. Have you considered purchasing a second home at the Lake of the Ozarks and becoming a part of this great community?  Talk to your mortgage lender today about Lake of the Ozarks home loan options. 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.

7 Tips for Building Your Credit Score

Your mortgage lender at the Lake of the Ozarks uses your credit score to determine your financial trustworthiness. Therefore, your credit is a key factor in getting your Lake of the Ozarks home loan. Keep in mind that your credit score can't improve overnight; it takes time and planning. Even if you aren't thinking about buying a house for a couple of years, now is the time to start thinking about your credit score. Here are 7 ways to start working on improving your credit score today!

1. Keep Your Credit Card Balances Low.

One of the major factors in determining your credit score is your available credit, and how much of that available credit you're actually using. The smaller the percentage the better, with the optimum amount being 30% or lower. In order to boost your credit score, be sure you are paying down those balances and keeping them low. Another thing you might not know is that even if you pay your balance off in full each month, you might have a higher utilization rate than you think. Some issuers report the balance on your statement to the bureau. Therefore, you should see if your credit card issuer will accept multiple payments throughout the month in order to get that statement balance down.

2. Consolidate Your Credit Card Debt. 

Do you have multiple credit cards with small balances on each one? A good way to improve your credit score is to get rid of those nuisance balances completely. Another factor in determining your credit score is simply how many cards you have with balances. Therefore charging $20 on one card and $30 on another instead of using the same card can actually hurt your score. Gather up all those cards you have and pay off all the small balances now. Then select one or two go-to cards to use for everything from now on.

3. Don't Close Accounts or Open New Ones. 

Closing unused credit cards isn't going to raise your score. In fact, this could cause your utilization rate (mentioned in #1) to dramatically increase. Say you have two cards, each with $2,000 in available credit, so you have a total of $4,000 of credit available. The one card has a balance of $1,000 and the other a balance of zero. By closing the one credit card, your utilization rate has jumped from 25% to 50% and now you're ratio is over that optimum threshold. On the otherhand, you also don't want to just open a number of new credit cards that you don't need just to increase your available credit and reduce the utilization rate. This approach could backfire and actually hurt your credit score. Plus a rapid account buildup can look risky if you're a new credit user.

4. Don't Try to Remove Good, Old Debt from Your Report.

It's a myth that old credit is bad for your credit score. Once a debt is paid, such as a car loan, many people will call to try and get it removed from their credit report. However, old debt, as long as it is good debt that you've handled well and paid as agreed, is actually good for your credit. Plus, most of those debts will disappear after 7 years anyway. Leave old debt and good accounts on your credit report as long as possible. It shows that you are responsible, and can/will pay back the money that you borrow for your mortgage loan at the Lake of the Ozarks.

5. Always Pay Your Bills on Time.

If you're thinking about purchasing a home at the Lake of the Ozarks, you might be scrambling to save money. Don't let that savings spree get in the way of paying your monthly expenses. Be sure to pay all of your bills on time. If you're bad about paying your bills or paying them on time, it damages your credit and hurts your score. Even if you have a large sum of money in savings, a drop in your credit score due to not paying your bills on time could cause issues with your home purchase.

6. Avoid Showing Risk. 

Sometimes one of the best things you can do is avoid doing something that could sink your credit. Two of the biggest issues including missing payments and suddenly paying less (or charging more) than you normally do. You don't want to do anything that would indicate risk. For example, don't make any large purchases on a credit card or use a credit card in a way that would indicate financial stress, such as at a pawnshop or to hire a divorce attorney. It's important that your credit report reflects that fact that the bank loaning you money isn't taking a huge risk that you won't pay it back. They need to trust that you can pay back your loan in full, with timely payments.

7. Limit Your Rate Shopping Time Period. 

If you're searching for the best rates on a home loan, or any other loan for that matter, be sure to do all of your "shopping" within a specific time frame. FICO scores distinguish between a search for a single loan and a search for many new credit lines. This is in part determined by the length of time over which the credit inquiries occur. The closer your inquiries are together, the better it looks on your credit score.

In general, building your credit score is about fixing errors in your credit history and then maintaining a consistent, good credit history from there on out. Rasing your credit score after a poor mark or building credit for the first time will take patience and discipline. If you're thinking about applying for a home loan at the Lake of the Ozarks anytime soon, contact me at 573-746-7211. As your Lake of the Ozarks mortgage lender, I'll 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

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.

Who's Ready for the Annual Lake of the Ozarks Shootout?

With just one week until the largest unsanctioned boat race in the Midwest, the Lake of the Ozarks is gearing up for a great event! For 2015, we have even more activities planned, making this year the biggest and best yet! Join us at the Lake of the Ozarks August 21-30 for the Annual Lake of the Ozarks Shootout! Your Lake of the Ozarks mortgage lender is here to share everything in store for you this year:

FRIDAY - August 21

• 2nd Annual Border Xpressions Shootout Pontoon Poker Run 
• 6th Annual Mini Shootout - at Papa Chubby's on the 26 MM
• 5 PM Registration and Meet & Greet 
• 6-10 PM DJ Captain Mark 
• 7-11 PM Live Entertainment with Soca Juke Box at Captain Ron's 

SATURDAY - August 22

• 6th Annual Mini Shootout - at Papa Chubby's on the 26 MM
• 9 AM - Noon - Practice Runs 
• Noon - 1 PM - Lunch and Open Swimming
• 1-5 PM - Splash Runs and the Bounty Race
• 7-11 PM - Live Entertainment 
• 7-11 PM Live Entertainment at Captain Ron's 

SUNDAY - August 23

• 7th Annual 2015 Shootout Benefit Golf Tournament
• Price: $125 per Person or $500 per Team
• Includes Box Lunch, Golf Cart and Lots of Prizes 
• Noon - Registration and Lunch 
• 1 PM - Shotgun Start 
• Awards Party Immediately Following Golf Tournament

MONDAY - August 24

• The Great Shootout Treasure Hunt at Captain Ron's and Buccaneer Bay
• 5-6 PM - Dinner and Drinks On Your Own
• 6-7 PM - Explanation of Rules and Treasure Hunt
• 7 PM - Live Entertainment with Sax on the Beach at Captain Ron's 
• 7-8 PM - Checkout and Presentation of Awards 

TUESDAY -  August 25

• Shootout Volleyball Tournament at Captain Ron's 
• 4-8 PM Volleyball Tournament 
• 6 PM - Live Entertianment
• 6 PM - Hall of Fame Dinner at The Stables

WEDNESDAY - August 26

• Shootout on the Strip Meet & Greet 
• 8 AM - 4 PM - Vendor Booth and Racer Village Setup on Strip
• 2-3 PM - Drivers Line Up 
• 4 PM - Drivers Roll onto the Strip 
• 5-10 PM - Street Party Open to the Public 

THURSDAY - August 27

• 8 AM - 4 PM - Vendor Booth and Racer Village Setup at Buccaneer Bay 
• 12-4 PM - "Make-A-Wish" Powerboat Rides on Dock 3 
• 4-9 PM - Poly Lift Poker Run Registration and Kick-Off Party at Performance Boat Center
• 4-9 PM - Meet & Greet with the Racers at Performance Boat Center
• 6 PM - Stereo Shootout at Camden on the Lake
• 5-9 PM Shootout Benefit Auction at Performance Boat Center

FRIDAY - August 28 

• 7:30 AM - 10 PM - Poly Lift Poker Run - Registration, Breakfast and Start at Backwater Jacks
• 8-11 AM - Captain Ron's Open for Breakfast 
• 9-5 PM - Vendor Booths and Racer Village Open to the Public at Buccaneer Bay 
• 12-4 PM - On-Site Racer Registration on Cannonball Beach
• 12-4 PM - Safety Inspections & Class Identifications on Dock 4 and Cannonball Beach
• 7-11 PM - Live Entertainment with Kricket Alley at Captain Ron's 
• 11PM - Close - Music with DJ Kyle at Captain Ron's

SATURDAY - August 29 

• 8-11 AM - Captain Ron's Open for Breakfast
• 8AM - 4 PM - Racer Registration on Cannonball Beach
• 8 AM - 4 PM - Safety Inspections & Class Identification
• 8:30-9:30 AM - PWC Classes Run 
• 9 AM - 5 PM - Vendor Booths and Racer Village Open to the Public at Buccaneer Bay 
• 10 AM - Opening Ceremony / National Anthem
• 11 AM - Noon - Manufacturer Classes have Priority Runs
• Noon - 2 PM - Professional Classes have Priority Runs
• 1:45 PM - Flying Performance
• 1:55 PM - Drag Race 
• 2-4 PM - Non-Professional Classes have Priority Runs
• 7-11 PM - Live Entertainment with Kricket Alley on the Barge at Captain Ron's 
• 11 PM - close - Music with DJ Kyle at Captain Ron's 

SUNDAY - August 30 

• 8 AM - 3 PM - Registration at Cannonball Beach
• 8 AM - 3 PM - Safety Inspections & Class Identification
• 9 AM - 4 PM - Vendor Booths and Racer Village Open to the Public at Buccaneer Bay 
• 10 AM - National Anthem
• 10-11 AM - Professional Classes have Priority Runs
• 11 AM - Noon - Manufacturer Classes have Priority Runs
• Noon - 1 PM - Non-Professional Classes have Priority Runs
• 1-2 PM - Professional Classes have Priority Runs
• 1:45 PM - Flying Performance
• 1:55 PM - Drag Race 
• 2-3 PM - Open for Final Runs
• 4 PM - Awards Ceremony 
• 4 PM - Vendors May Start Taking Down 

All proceeds from the 2015 Lake of the Ozarks Shootout will benefit Lake Area Rescue Teams and other charitable organizations! As you enjoy this year's Shootout event, think about how nice it would be to have a second home at the Lake of the Ozarks to stay in. Rather than paying for a hotel or condo rental for the week, you would have your own place to come to each year, anytime you like. For more information on how to get a home loan at the Lake of the Ozarks, contact us 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.

Will the Federal Reserve Increase Rates This Fall?

When it comes to your mortgage at the Lake of the Ozarks, one of the most important aspects is the rate. There's been a lot of talk recently about changes in interest rates, that they could possibly be increasing soon. With economic conditions in the United States getting back to normal, the Federal Reserve should be making a decision soon. The September meeting remains a possibility for lifting rates for the first time in nine years!

Dennis Lockhart, President of the Federal Reserve Bank of Atlanta

According to the Wall Street Journal, Lockhart said on Monday that the Fed is close to raising short-term interest rates. This change could happen as soon as September due to the economy "approaching an acceptable normal." In a speech Lockhart stated, "the point of liftoff is close." He also said to be convinced of holding off, there would need to be a significant deterioration in economic conditions. He said he has more confidence in the economies resilience compared to a few months ago. However, he also reiterated that there is not set date for the increase and the decision will be data dependent. The increase will also be gradually, likely something less frequent than every single meeting. 

Jerome Powell, Federal Reserve Governer

According to CNBC, Powell said on Wednesday that he's still unsure whether interest rates should rise. While the labor market remains solid, inflation was still "well below" the Fed's targets. He also stressed that the path for rates is more important than the timing of the first hike in rates. His views came after Lockhart stated his position on the matter. In conclusion, Powell said "the time is coming" for a rate hike, as long as the data bears out.

This debate on Wall Street is centered around whether rates will increase at the September or the December meeting. Either way, the time for a rate increase is coming and it could affect the rates that we are able to offer on your Lake of the Ozarks home loan. Now is a great time for potential home buyers to get in on historically low rates before they rise. There's potentially a very small window of opportunity - so give the best mortgage lender at the Lake of the Ozarks a call at 573-746-7211 today!

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.