What is a Rate Lock?

You've decided on purchasing a home at the Lake of the Ozarks. You know that mortgage rates are changing daily, so how do you make sure the rate originally available to you doesn't go up? Today's blog discusses rate locks and some common questions in regard to locking in a mortgage rate.

Rate Lock 

A rate lock is a guarantee from your Lake of the Ozarks mortgage lender that they will give you, the borrower, a certain interest rate, at a certain price, for a specific time period. It protects the borrower from rate fluctuations for the duration of the lock period. If market rates rise after the rate is locked, the borrower will still get the lower rate. The downside, however, is that if rates drop after the rate is locked, the borrower might not be able to take advantage of that opportunity.

How a Rate Lock Works

Once your loan application has been approved, your mortgage lender may offer you a rate lock. Sometimes there is a fee for this, and the fee varies widely according to the amount and term of the loan, as well as the rate lock period. Rate locks are typically available for 30,45 or 60 days, and sometimes longer. Typically a rate must be locked at least a few days, but usually a week, before closing. This allows the lender time to prepare the closing package. If the rate lock expires before closing, you may be able to get an extension. If an extension is not granted, you'll end up paying the market rate, which could be higher.

Reasons Your Interest Rate Could Still Change

Even if your rate is locked, it could still change if there are any changes made to your application. Here are some common reasons a borrower with a rate lock could still see a change in interest rate:

• A change in the type of loan 
• A change in the loan amount
• A change in the downpayment amount 
• A change in the home appraisal
• A change in your credit score 
• A change in your verified income  

Questions to Ask Your Lender

Rate lock policies vary from lender to lender. Avoid any surprises with your interest rate by asking your mortgage lender at the Lake of the Ozarks the following questions:

• What does it mean if I lock my rate today? 
• What rate lock time frames are available to me?
• What are the fees associated with my rate lock? 
• What happens if my closing is delayed and the rate lock expires?  

To learn more about what mortgage rates are available to you and how to lock them in for your Lake of the Ozarks home purchase, call Lakelender Michael Lasson at 573-746-7211. I'm here to work with you every step of the way. I'll discuss your Lake of the Ozarks home financing needs, 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

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.

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.

5 Home Refinance Triggers

While most people think about refinancing a home at the Lake of the Ozarks to get a better interest rate, lower their monthly payment or shorten the term of the loan, there are other factors that can trigger the idea of refinancing. Keep reading to learn more about some of these refinance triggers. If you're in any of these situations, talk to your Lake of the Ozarks mortgage lender about your options.

1. Experiencing a Divorce

In the event you and your spouse decide to divorce, and both names are on the mortgage, you'll either need to sell the home or refinance it. In certain situations, where you need to remove a name from the mortgage or title, a home refinance can be an appropriate vehicle to do so. Talk to your lender about the best options for you and your situation.

2. Recovering From a Low Credit Score

Even if interest rates haven't dropped since you first applied for your mortgage, you may still be able to get a better interest rate if your credit score has improved. If your original mortgage rate was based on a low credit score and you've been working to improve that score, you might talk to a mortgage professional at the Lake of the Ozarks about what rates you might qualify for in a refinance. 

3. The Ability to Discontinue Mortgage Insurance

With a low enough LTV (Loan-to-Value), you can refinance your loan to remove the private mortgage insurance that was required at the time you originally obtained the loan. If your home either increased in value or you've paid your loan down enough, a refinance might save you money via a lower interest rate and the absence of the insurance payment. 

4. The Need to Cash Out Some Equity

If you're in need of some cash flow, whether it's for renovations or to pay off other debt, you might consider refinancing your home. Renovating wisely can actually increase the value of your property, which is particularly important if you are considering selling your home in the near future. If you're wanting to consolidate debt, you likely won't find a personal loan with interest rates as low as your home loan rates. Talk to your lender to see if a cash-out refinance is an option for you. 

5. The Desire for Long-Term Savings

If you're planning to stay in your home for a long time, then a home refinance might be a great option for you. With a lower interest rate, you could save more money in the long run. However, if you're planning to sell and move soon, the upfront costs to refinance your mortgage might not be worth the investment. You won't have the home long enough to benefit from the interest savings.

If you're considering Lake of the Ozarks home refinancing, give us a call at 573-746-7211 to discuss your situation. As your mortgage lender at the Lake of the Ozarks, 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

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.

3 Considerations for an Adjustable Rate Mortgage

When choosing to finance a home at the Lake of the Ozarks, you have options. One decision you'll need to make is whether you want a fixed rate mortgage or an adjustable rate mortgage. With a fixed rate mortgage, your interest rate stays the same throughout the life of the loan. However, with an adjustable rate mortgage, you may be able to secure an even lower rate in the beginning; after that introductory period, the interest rate then moves with the market. Keep reading to learn more about adjustable rate mortgages and what you should consider about them from your Lake of the Ozarks mortgage lender.

1. Consider the Current Spread. 

The "spread" is the difference between the adjustable rate and the fixed rate. This difference is your incentive for choosing an adjustable rate mortgage over a fixed one. The bigger the spread, the more attractive an adjustable rate mortgage will look. The "teaser period" is the duration that the loan will stay at that introductory rate before it shifts to the market rate, which could be higher or lower than what you were previously paying. That's the risk you take when choosing an adjustable rate mortgage. In general, the shorter your teaser period, the better introductory rate you can get. The savings available with an adjustable rate mortgage can be substantial during the teaser period. However, after the mortgage enters the adjustment period, the savings can be reduced or even eliminated.

2. Consider Your Time Frame. 

Another important consideration when choosing between an adjustable rate mortgage or a fixed mortgage is how long you plan to stay in the home. If you feel you'll stay in your home for the rest of your life (past the teaser period), then you might be better off sticking with a fixed rate mortgage. However, if you think you'll only stay in this house for a few years before selling or refinancing, then an adjustable rate mortgage may be the better option. According the the National Association of REALTORS, homeowners typically own property for close to 7 years before selling. Older homeowners typically keep a home longer, while first-time home buyers will often keep a home for a shorter period of time. There's no sense in paying the interest rate for a 30-year mortgage if you're only planning to stay in the home for 5 years or less. See what kind of savings you could get with an adjustable rate mortgage if this is the case.

3. Consider the Loan Size. 

Are you purchasing a home that requires a "Jumbo Loan"? A jumbo loan is a mortgage loan which exceeds the loan size limits for an area. When borrowing more than your area's loan limit allows, the fixed rate pricing tends to deteriorate and your best choice could be an adjustable rate mortgage. The savings you can get with an adjustable rate mortgage on a jumbo loan can be huge. It's not uncommon to see the adjustable rate on a jumbo mortgage beat the fixed rate by 250 basis points or more. That's a pretty big incentive to choose an adjustable
rate over a fixed rate mortgage.

With mortgage rates remaining low, the savings of an adjustable rate loan are even better. If you're considering a home loan at the Lake of the Ozarks, give us a call at 573-746-7211 to discuss your options. As your mortgage lender at the Lake of the Ozarks, I'm here to work with you every step of the way. When it comes to your financing needs, I'll discuss your 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

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.

Join us at the St. Charles Boat Show March 9-12

The 2017 St. Charles Boat Show will take place March 9-12 at the St. Charles Convention Center. This is the premiere show for boating enthusiasts across the Midwest, and especially the St. Louis market. Be sure to stop by our booth and learn more about getting approved for a mortgage at the Lake of the Ozarks!

2017 Boat Show Details

Join all of your favorite marine dealers, as well as other vendors, from the Lake of the Ozarks at this annual boat show event! See the latest in cruisers, runabouts, performance boats, pontoons, ski boats, personal watercraft, docks, lifts, boating accessories and everything else associated with boating and living at the Lake of the Ozarks all in one place! This year's show will feature more boats, more exhibitors and more fun!

Photo From: St. Charles Boat Show Website

Boat Show Hours 

March 9th: 3 pm to 9 pm
March 10th: 12 pm to 10 pm
March 11th: 10 am to 9 pm
March 12th: 10 am to 5 pm

Admission is $9 for adults and $5 for children ages 6-12. Children 5 & under get in free.

Second Homes at the Lake of the Ozarks

If you frequent the Lake area, now's the time to consider investing in a second home at the Lake of the Ozarks! Not only would you have a comfortable place to stay each time you visit, but you have a place to store your boat and other boating accessories. No more pulling that trailer and all your boating accessories down to the lake every time you want to visit. The Lake of the Ozarks, due to it's central location and great variety of activities available, is a great place to invest in real estate.

As your Lake of the Ozarks mortgage lender, I'm here to work with you every step of the way. From the moment you decide you want to look at vacation homes to the closing process, I'm here to answer all your questions. When it comes to your financing needs, I'll discuss your options, offer competitive interest rates and back it up with the first class service you deserve. To learn more about securing a home loan at the Lake of the Ozarks, 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.

Understanding the Steps for Mortgage Processing

Trying to close on your home can be frustrating. The lender and title company need a lot of documents from you and answers to a lot of questions. Thankfully, the best mortgage lender at the Lake of the Ozarks is here to help you understand the behind the scenes process, so you're able to be proactive and make sure deadlines are met. So what does the lending process look like? Keep reading to find out.

Pre-Approval

First things first, you need to understand that a pre-qualification and a pre-approval are NOT the same thing. A pre-qualification is based off of unverified information and is a rough estimate of what you could qualify for. A pre-approval requires a credit check and financial and employment verification, which provides a more solid approvable loan amount. Once you know this, you can start shopping for your dream home at the Lake of the Ozarks!

Processing

You have found the home of your dreams, worked out an agreement and the contract has been signed. Once your Lake of the Ozarks mortgage lender has the completed purchase agreement, they will begin processing your loan application for approval. They'll look into your credit, employment, and financial history in more detail to come up with a loan estimate. This is not an approval or denial, but a statement of terms and estimated fees.

Loan processors will also look into property information. An inspection and/or appraisal will be ordered to determine that the value of the property covers the loan request amount. If it's determined that the value of the property doesn't meet or exceeds the requested loan amount, the loan may be denied. This doesn't necessarily mean that the deal falls through though, it just means that the purchase contract may need to be revised if all parties agree to move forward.

A title search will also be ordered to make sure there aren't any outstanding liens or judgements on the property that may hinder the underwriting process. This process also brings to light any easements or encroachments that may pose potential ownership issues in the future. The data collected during a title search helps to reduce risk of title problems and brings peace of mind to the buyer.

Underwriting

This is the decision-making step. The underwriter reviews all documentation from the loan processor to make sure the borrower and property match eligibility requirements. All information is double checked for accuracy and red flags. Once they've thoroughly gone through everything, they will either approve or deny the loan. The underwriter may give an approval with conditions such as requiring further documentation on a specific item on your credit report. This happens often and can continue to come up until all conditions are satisfied. Once all conditions have been met, the underwriter can approve the loan.

Closing

Your loan is approved! Now the lender will provide you with a closing disclosure to review and return completed at least three days prior to closing. This document is extremely important because it is an overview of the monetary aspects of the closing, so review it carefully! Once the lender receives this back, they can begin processing the loan documents to be sent to the escrow company for your completion. The escrow company then sends the closing packet back to the lender for final review. Once the lender approves the documents, they will wire funds and give instruction for recording the vesting deed and deed of trust. It's official - you've closed!

A lot of these steps go unseen by the buyer until something is needed by the lender or underwriter, but we feel that it is important for buyers to understand the process so they are prepared. While we hope that all closings go smooth and have very few catches, we know that things happen and there are no guarantees. You can trust that we will guide you in the right direction for all of your Lake of the Ozarks home financing needs.

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.

6 Things That Can Negatively Affect Your Mortgage Deal

If you're thinking about purchasing a home at the Lake of the Ozarks, chances are you're going to need financing. Many factors affect the loan approval process, some positively and some negatively. In today's blog, your Lake of the Ozarks mortgage lender addresses a few things that can negatively affect your mortgage approval.

1. Unstable Work History.

When applying for a mortgage, one of the most important things is showing proof that you can make your payments. Having a stable work history and a stable income is one way to do that. Attempting to get a job with less than two consecutive years in the same occupation or field might affect your chances of loan approval. Any relatively recent gaps in employment are also a red flag in the mortgage process. Avoid changing jobs during the mortgage process as this can affect the loan approval as well.

2. Past Foreclosures or Bankruptcy.

Foreclosures, no matter how old they are, can hurt your mortgage deal. Foreclosures negatively affect your credit score, making it harder to obtain credit in the future. Having a foreclosure on your credit history also means you can expect higher interest rates if and when you do get approved. Numerous bankruptcies can also negatively impact your ability to obtain a mortgage. Bankruptcy seriously hurts your credit score and can stay on your credit report for up to ten years. Managing your new debts and giving your credit score time to improve is the best way to work past this.

3. Non-Sufficient Funds.

To ensure that a borrower has their finances in order and can handle having a mortgage payment each month, the underwriter scrutinizes bank statements. Any non-sufficient funds on those bank statements could raise a red flag in the approval process. Having all of your funds "gifted" to you can also make it more difficult to obtain a mortgage. Proper documentation of any gifted funds is crucial to the loan transaction.

4. High Debt-to-Income Ratio.

In addition to your credit score, mortgage underwriters also take a look at your debt-to-income ratio. One common occurrence here at the Lake of the Ozarks that creates a high debt-to-income ratio is when a borrower tries to keep their current residence while obtaining a mortgage. There are a lot of second homeowners at the Lake of the Ozarks, as this is a top vacation destination in the Midwest. Talk to a mortgage professional to see if your finances, credit score and debt-to-income ratio are good enough to obtain a second home.

5. Late Payments & Open Collections.

One factor that can seriously affect your chances at a Lake of the Ozarks home loan approval is how you manage your debts. Late payments are a big red flag for mortgage underwriters. If you have anything that has gone to collections, your ability to obtain a mortgage becomes a lot more difficult. Be sure to make your payments and do so on time to avoid issues during the mortgage process.

6. Large Increase in Housing Expenses. 

Whether you're selling your home and upgrading to a larger one or transitioning from renting to buying, having a large increase in housing expenses is a red flag in the mortgage approval process. If a borrowers payments are near doubling, a mortgage approval is going to be difficult. Again, the mortgage professionals want to make sure that you can handle the monthly mortgage payment - and owning a home comes with more expenses than just the mortgage.

To discuss your current situation in detail with a mortgage professional at the Lake of the Ozarks, call 573-746-7211. When it comes to your Lake of the Ozarks home financing needs, I'm 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

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.