Fun Facts About Renters (and Why You Should Consider Buying)

One of the most important financial decisions you have to make is whether to rent or own your home. While there are benefits to both renting and owning, many renters don't realize how much they could potentially be saving by investing in a home today. In today's blog, your Lake of the Ozarks mortgage lender offers a few facts and considerations about renting vs. buying.

Fun Facts About Renters

1. According to the National Multifamily Housing Council, 37% of households in the United States rent, while the other 63% prefer homeownership.

2. According to NAR Chief Economist Lawrence Yun, the average renter missed out on $41,000 in equity by not buying three years ago.

3. Nationally, 50% of all renters spend more than 30% of their income on housing according to the NY Times.

4. According to PulteGroup, 89% of renters think owning a home is part of the American Dream.

5. Approximately 32% of potential homebuyers plan to buy in the next couple years. 

6. Around 90% of millennials prefer owning a home over renting one. 

7. The median gross rent from 2011-2015 was $758.

8. Buying a home is roughly 45% less expensive than renting.

9. According to Trulia, rent prices have risen by 4.7% in the past year, while asking home prices have only risen 2.3%.

Considerations About Renting vs. Buying

While renting is a great short-term option, financial gains of homeownership are applicable if you plan to stay in the home for 5-10 years. With current interest rates extremely low, most renting situations are more expensive than owning. In addition, when you choose to rent, you aren't building equity. Creating an asset, providing a legacy and increasing net worth are all benefits of becoming a homeowner that you can't get as a renter. With the help of a mortgage professional at the Lake of the Ozarks, you can weigh the pros and cons of buying and renting to decide which option best suits you in the short-term and the long-term.    

While renting might be the best option for some people, you can see from the facts above that homeownership has its benefits. If you're considering purchasing a home at the Lake of the Ozarks, give me a call at 573-746-7211 to discuss your options. With mortgage rates still hovering near all-time lows, now is the time buy! I'm committed to working with you every step of the way. I'll discuss Lake of the Ozarks home 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 

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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

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 First-Time Homebuyer Mistakes to Avoid

You're tired of renting and considering purchasing your first home. Where do you start? Your favorite mortgage lender at the Lake of the Ozarks is here to help! Keep reading to learn about a few of the most common mistakes first-time homebuyers make.

1. Failing to Consider Additional Homeownership Expenses. 

Whether or not you can afford a monthly mortgage payment isn't the only expense to consider. Along with homeownership comes added expenses you don't have as a renter. Expenses you'll need to consider include: property insurance, taxes, homeowner's association dues, maintenance and higher electric and water bills. By adding the costs onto the initial monthly mortgage payment, you'll better be able to understand the true cost of homeownership and see if it makes sense for you.  

2. Choosing Not to Enlist Professional Help. 

While searching for a new home may seem like something you can do on your own, you really should consider consulting the experts. Especially if you're new to homebuying, you'll need a reputable real estate agent, a good loan officer and possibly a lawyer. When choosing who to work with, be sure to get references. As a first-time homebuyer, you may have difficulty knowing who you can trust with such a big investment. Make sure to do some research first, and if you have a mortgage lender you know you can trust, ask him or her for recommendations on a real estate agent and vice versa. 

3. Searching for a Home Without a Mortgage Pre-Approval. 

The journey of purchasing a home is exciting. However, it's easy to get caught up in the whirlwind of excitement that goes along with finding your dream home. Before you start searching for a home, talk with your Lake of the Ozarks mortgage lender about getting a pre-approval. This not only helps you understand what you qualify for, but also what price range you can afford. By starting with a pre-approval, you'll avoid making an emotional decision over a financial one.

4. Draining Your Savings to Make a Downpayment. 

One of the biggest mistakes first-time homebuyers make is draining their savings account to come up with the downpayment and closing costs. While putting down 20% so you don't have to pay private mortgage insurance may seem like a great idea, depleting your entire savings is risky. Keep in mind those expenses from before, as well as the possibility of an emergency situation arising, and you'll want to make sure you have some cash in savings to cover those types of things.

Now that you know what NOT to do when purchasing your first home, it's time to get started. As mentioned above, the first step is to meet with a trusted mortgage professional at the Lake of the Ozarks. I'm here to work with you every step of the way. I'll discuss financing options, offer competitive rates and back it up with the first class service you deserve. Call 573-746-7211 to start the pre-approval process 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

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.

The 411 on Loan Modifications

During times of financial hardship, it can be difficult to make your monthly mortgage payments. One way to make your payments more affordable is through a loan modification. Today's blog from your favorite mortgage lender at the Lake of the Ozarks discusses loan modifications and some tips for getting one approved.

Loan Modifications

A mortgage loan modification is an arrangement between the borrower and the lender that reduces the mortgage obligations during a time of financial hardship. The purpose of a loan modification is to make the payments easier for the borrower and avoid losing their home to foreclosure. Like the term implies, this arrangement is where the terms of the loan are modified or changed to make the loan more affordable. This could be reducing the mortgage rate or extending the loan term. In some cases, the lender may even write off some of the principal.

Getting a Loan Modification Approved

Approval for a loan modification can be difficult to obtain. When applying for a loan modification, the borrower must meet some qualifying criteria which includes: experiencing a documented hardship or change in financial circumstances, owning and occupying the property as a primary residence, having not filed for bankruptcy, not purposely defaulting to get a modification and being responsive in working with the lender. You must submit documents to prove the financial hardship. This includes paycheck stubs, a hardship letter, a budget and any other documents the loan servicer requests. Make sure you know exactly what is required of you. Misunderstandings about documents can cause complications in the approval process.

Writing the Hardship Letter 

The hardship letter is very important and must provide a valid reason. Some of the most common reasons include payment shock, job loss, work cutbacks or pay reductions, underemployment, declining business or sales revenue, illness or injury, divorce or separation, disaster, incarceration or other legal issues. The letter itself should be simple, financially informative and based on facts. Be sure to clearly outline the financial burden you're trying to overcome. Then explain why a loan modification is the best solution.  

If you're going through a hardship and struggling to make your mortgage payments, talk to your Lake of the Ozarks mortgage lender to see if a loan modification is a possibility for you. During these times, it's important to communicate with your mortgage lender. I'm here for 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.

Understanding Your FICO Score

When applying for a mortgage loan at the Lake of the Ozarks, the lender needs to determine how likely it is that you will make your payments. How does a lender do this? The FICO Score is the credit score most lenders use to determine your credit risk. In today's blog, your Lake of the Ozarks mortgage lender helps you understand what this number means.

What is a FICO Score? 

FICO Scores are the most widely used credit scores. They are a type of credit score created by the Fair Isaac Corporation. The Fair Isaac Corporation is a company specializing in "predictive analytics," meaning they take information and analyze it to predict what's likely to happen. While they do create credit scores, FICO itself is not a credit reporting agency. They use information provided by Equifax, Experian or TransUnion. The FICO Score, along with other details, is used to assess credit risk and help lenders determine whether or not to extend credit.

How is a FICO Score Determined? 

FICO Scores range from 300 to 850. In general, scores above 650 indicate good credit, while those below 620 indicate bad credit. The score takes into account information from 5 different areas, each weighed differently:

• Payment History - 35%
• Current Level of Indebtedness - 30%
• Types of Credit Used - 10%
• Length of Credit History - 15%
• New Credit Accounts - 10% 

The importance of any one of these factors is also determined by the overall information on your credit report. For example, if you haven't been using credit very long, your score will be factored differently than those with a longer credit history. 

Understanding a FICO Score

The first thing a mortgage lender at the Lake of the Ozarks wants to know is whether or not you've paid past credit accounts on time. Next important is how much you currently owe. However, having credit accounts and owing money on them doesn't necessarily mean you are a high-risk borrower. The length of your credit history also plays an important role in establishing your FICO Score. In general, a longer credit history will increase your FICO Score. Your credit history takes into account how long your credit accounts have been established, including the age of your oldest account, the age of your newest account and an average of all your accounts. Credit history also looks at how long specific accounts have been established and how long it's been since you used certain accounts. The next step is to look at what types of credit you have, including credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. New credit accounts will also come into play. Research shows that opening several credit card accounts in a short period of time represents greater risk. 

Your FICO Score is not only used to determine whether or not you'll be approved for a home loan at the Lake of the Ozarks, but also to determine what interest rate will be offered to you. If you are concerned about your FICO score and how it will affect your chances at a mortgage, talk to the best mortgage professional at the Lake of the Ozarks. I'm here to help you every step of the way, from your pre-approval all the way to closing on your dream home at the Lake! 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

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.

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.