Are Vacation Homes a Good Investment?

If you haven’t been thinking about a second home or an investment property yet, this year has been bringing it to everyone’s attention. This brings a big question to the forefront, though, are vacation homes a good investment? Let’s take a look at some of the reasons a vacation home can be a great investment and a few things you will want to be aware of as you start to make these big decisions.

Investment Property vs. Vacation Property

One of the first things you need to figure out when deciding if a vacation home is a good investment is how the property will be used. An easy way to think about it is that a vacation property will primarily be used for your enjoyment. You can still rent it out occasionally should you want to, but there is a limit on how many nights it can be rented before it becomes an investment property. Investment properties are purchased with the intent to make money. You may still vacation in your investment property, but its primary function will be to provide a place for others to stay and for you to earn an income.

Once you decide what your intention with the vacation property at Lake of the Ozarks will be, you can now start to look at the advantages versus realistic expectations.

The Advantages of Owning a Vacation Home

If you have been to Lake of the Ozarks several times, you realize quickly what an amazing place it is, which may spark your interest in owning a vacation home here. Here are a few perks that come from owning a vacation home at Lake of the Ozarks!

You can write off a lot of your expenses - The specifics of what can be written off need to be discussed with your accountant or tax professional, but there are several items such as mortgage interest, mortgage insurance, depreciation, etc.)

You can make an extra income - if you use this property as an investment property, you can take advantage of the additional revenue stream that it can bring. This will depend on the time of year and location, obviously, but it can certainly be a lucrative step if you play your cards right.

You have a ready-made vacation destination - if you love vacationing at Lake of the Ozarks, it could be a really easy decision for you to get a vacation home here. You will easily have your own getaway spot, whether that is for personal vacations or as a place to host parties, friends, a family reunion, and more.

You have a potential retirement home - this is also a common reason and advantage to buying a home in a vacation destination. Not only will you have a nice little nest egg, but you will also have a place to retire to if you so wish. Vacation homes are considered a great long-term wealth investment, and even if you decided to sell the home later and use the cash to cover your retirement plans, you would be winning.

Realities to Be Aware Of

Obviously, with any new endeavor, there will be aspects of it that require more effort or could put you out a bit. Owning a second home, whether a vacation home or an investment property is going to require some additional time and resources from you - and you can’t determine that this is going to be a good investment without being aware of them.

Property management - One thing to consider when purchasing a second home, especially an investment property, is who will manage it. Either you will be making trips to the Lake after every guest to clean up and fix repairs, or you can hire a short-term rental property manager to care for your place. The average charge for a short-term rental property company is 15-40% which can eat through your extra income pretty quick.

You will have to find your own clients - unless, as mentioned above, you go through a property manager, you will have to market your vacation rental strategically on your own. This can include listing your home on the most popular platforms, making it look beautiful through staging, and even running occasional discounts.

You will need to afford the additional mortgage - it is said that if you can’t afford to pay the mortgage without the renters, you may not be ready for the investment. Having an additional mortgage on a Lake of the Ozarks home is going to be an additional responsibility. Not to mention all of the other costs and fees that are tied into owning an additional home.

Ready to Invest?

Whether you are aiming to make a good investment financially or emotionally - owning a vacation home at Lake of the Ozarks can be an awesome next step in your life. 2020 has been THE year for interest rates and home loans, so if you’ve been pondering the purchase, this is the year to make that investment and lock down an amazing rate.

If you still aren’t sure whether a vacation home is the right investment for you, it is said that 11% of the mega-wealthy consider real estate to be one of the top ways they made their fortunes. In fact, of all of the ways these ultra-rich individuals made their fortunes, real estate outpaced everything else 3 to 1. If you’re ready to make the investment, Team Lasson is ready to assist! Visit our website to submit an application and we will be in contact with you soon to get your pre-approval rolling.

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.

How Much Vacation Home Can I Afford?

When purchasing a vacation home at Lake of the Ozarks, one of the first questions to ask yourself is how much can you afford to put into a second home. You already have a pretty good idea of the costs involved with your current home, but it’s important to not just look at the monthly mortgage payment. In addition to a monthly mortgage payment, you will also need to figure out the upfront home buying costs, the closing costs, and the regular homeownership expenses. Here is a quick overview of costs that come up through the start of your mortgage and how to prepare for these when you are purchasing your second home at Lake of the Ozarks.

Upfront Buying Costs

Your monthly mortgage payment is only one piece of the puzzle when you are figuring out how much you can afford to pay for a vacation home. A few of these are going to be the Inspection and Appraisal fees, the earnest money, and the down payment.

Earnest Money - this is your initial deposit on your home. It can be beneficial because if your offer is accepted, it can put weight behind your purchase. Also, if your offer is one of many bids, the earnest money put down could give you some advantages with the seller’s decision.

Down Payment - generally, the more you pay down, the better your mortgage rate can be. A 20% down payment is ideal, but down payments can be higher or lower than that depending on the loan program you qualify for and how much you have saved for the down payment.

Closing Costs

A good rule of thumb is that your final closing costs will typically range from 2-4% of the total loan amount. Here is a quick overview of what can be included in closing costs - depending on many factors:

• Mortgage Origination Fees
• Attorney's Fees
• Inspections and Surveys
• Title Insurance and Title Search
• Recording Fees
• Appraisal Fees

Expenses Associated with Homeownership

There can be many additional costs included with owning a home, some are obvious, some may get forgotten while you are working through your budget. It’s important to be informed on all of the costs of homeownership before committing, so let’s take a look at some of these:

• Mortgage Insurance
• Home Owner’s Insurance
• Utilities
• Repairs
• Property Taxes
• Home Owner Association Dues

Now is the Time to Buy

2020 has been a great year for both buying a home or refinancing your current real estate. If you have been thinking about buying a home, but you need to know how much you can afford to spend on one, let Team Lasson help! Visit our website, fill out an application, and we can get a preapproval ready for you. This will give you a good idea about how much you can afford to spend on a home. We look forward to assisting you through this exciting process and can’t wait to help you get the keys to your new vacation home through our mortgage services at Lake of the Ozarks.

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.

Important Aspects of Interest Rates

Interest rates can seem a bit mysterious. It is an illustrious number that is created based on carefully curated aspects of your life. The interest rate can hold a huge weight, as it determines how much money you will be spending on your loan over the lifetime of it. Team Lasson believes that this is truly the best time to secure a loan or refinance your home. So we are covering a few aspects of interest rates that you may find very interesting.

Interest Rates Can Be Volatile

The thing about interest rates is that at any given point in the year, they can be high or low. This means that when the rates are low, you will want to take advantage of them! Within a loan that you already have, your interest rate will stay the same, so long as you do not have an adjustable-rate mortgage (ARM).

Mortgages All Around

What makes mortgages so interesting is how many people have them. Having a home mortgage is not limited to certain classes or to people who only make a specific amount of money. In fact, it may surprise you to find out that even the very wealthy people still get mortgages on their homes.

Income vs. Assets

It may be surprising, but the money that you make every month is more important than your assets. Obviously, having money in the bank can be a very helpful asset when buying a home, but when lenders are looking at the details that make up your financial situation, the monthly income is considered more stable than having assets.

Fun Facts About Mortgages

1. It was 1968, and mortgage rates were over 8.5%. For perspective, right now, a good average is in the 3.5% range (maybe a little higher or lower depending on factors). However, through 1967, the rates went down to 7% and homeowners were able to buy a home that was 15-20% larger for the same monthly payment!

2. As if the 60’s interest rates did not seem crazy enough, in 1981, mortgage rates reached 18.63%! If you are curious how that affected a monthly payment, a $300,000 home with a 30-year mortgage would be approximately $4,676 a month compared to roughly $1,347 a month now for that same property.

The average mortgage rate for the past 50 years is just over 8%, which is making the interest rates of today look REALLY good.

Getting a New Mortgage or Refinancing

If you have been thinking about refinancing your home or purchasing a vacation home at Lake of the Ozarks, there truly is no time like the present. We have been busy keeping up with the current demand as so many are trying to secure the best interest rates they can, but we cannot imagine doing anything else!We are so honored to be serving Lake of the Ozarks with our mortgage services, as well as assisting home buyers on their journey to buying a new home. Visit our website to learn more about us, as well as fill out an application to get started. We can get a pre-approval ready for you, and this will make the home buying process so much easier. We look forward to welcoming you home!

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.

The Best Time to Buy a Lake Home

The question that is burning on everyone’s mind, "When is the best time to buy a Lake home?” There are many factors at play when it comes to choosing a time to buy, and they could depend on the market, what is available, and even the interest rates. Let’s take a look at some of these factors to help guide you into the best choice for you and your buying needs.

Things to Remember When Buying During Peak Season

There can be many highlights to purchasing a home during the peak season. For the Lake area, peak season runs from Memorial Day to Labor Day, with a little padding on the ends. One of the most popular reasons for purchasing during the peak season is because there are generally more homes on the market. However, this year is a little different. Not only are there often more to choose from during the peak buying season, but due to current events, the interest rates are fantastic.

There are, of course, a few cons to purchasing a vacation home at Lake of the Ozarks during the busy Summer season. Greater demand can also bring more competition, and more competition can increase the price of a home. Homes also sell a lot faster during the peak season as everyone wants to get a contract on their favorite listing before any others do. You may also find the prices are higher during the peak season because of the higher competition. 

Things to Remember When Buying During the Off-Season

Off-season at Lake of the Ozarks is through the later Fall months into early Spring. Obviously, there is still traffic all through the year as different hobbyists and homeowners enjoy the quiet serenity of the Lake through those months, but it is definitely more toned down. Some of the pros of buying during the off-season are that you can generally get a home with very little competition. Most people are not thinking about buying a vacation home at Lake of the Ozarks during the Winter, so you should not have the same level of bidding wars during this time of the year. Purchasing a Lake home during the Winter also allows you to see what the area looks like when things are slower and more relaxed. Granted, with the holidays happening there is still a lot going on at the Lake, but it is certainly not like busy Summer weekends.

Some downsides to purchasing a vacation home in the Winter can be as simple as not being able to tour the home when scheduled because of weather. Lake levels are also generally lower through the off-season and the wildlife and plants are hibernating, so the environment definitely has a different feel than it does during the hustle-bustle of Summer.

When Do You Want to Buy?

In the end, the best time to buy a vacation home at Lake of the Ozarks comes down to two things.

• When are you ready to buy?
• What homes are available?

If you have the money ready, and there are a few homes on the market that look like they could be perfect for you, then NOW is the best time to buy! Team Lasson has been assisting so many homebuyers as they secure their dream vacation homes this Summer. Interest rates have been phenomenal, so if you have been considering the purchase of a vacation home, there is no time like the present. You can visit our website to learn more about us at Lake of the Ozarks or fill out an application to get started!

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.

Important Mortgage Facts

When purchasing a home, there are many details to be involved in. Whether you’ve never purchased a home or you are re-entering the market again after several years - some of these mortgage facts may come as a surprise to you. Your Lake of the Ozarks Mortgage lender has a few interesting facts that you’ll want to know when you get your next mortgage.

You Can Refinance At Any Point in Your Loan

In some instances, you don’t have to have your loan for a certain period of time before you refinance, which means that when you feel like it’s the best time - you can do it! You will want to do the math and make sure that you will be coming out ahead by the time it’s all over. We have many clients ready to refinance right now because the rates are fantastic. If you are considering refinancing your home, the goal is to make sure that it will lower your monthly mortgage payment and help you take advantage of lower interest rates. Refinancing certainly has some benefits, so if you’ve been considering it, we would be glad to help you make some final decisions.

Interest Rates Change Quickly

One of the first questions a soon-to-be homeowner will ask is “what’s the interest rate?” This answer is virtually impossible to answer straight away, but with a little bit of research, we can help you learn what your interest rate will be. An interest rate is figured based on your financial situation, but interest rates are also ever-fluctuating, similar to stocks, bonds, and other financial investments.

Better Credit = Better Deal

It shouldn’t come to a surprise to you, but the better your credit, the more options you have available to you. In fact, the better your credit, the better your chances are for not only getting approved for a mortgage loan at Lake of the Ozarks but also getting a better rate. There are programs out there that can help with not-so-great credit, but if you want a great deal, you can invest the time and effort it takes now to help improve your credit.

A Large Down Payment Isn’t Required (But It Is Helpful!)

It’s a common thought that you need to have 20% to put toward a down payment - but this isn’t always the case. A large down payment is still beneficial if you have it, but if you don’t, there are a variety of home loan options that will allow you to put down as little as $0.00. You can fill out the application on our website and we can discuss the different options available for you and will provide a pre-approval, should you qualify!

If you're considering a home purchase at Lake of the Ozarks, give us a call at 573-746-7211. As your mortgage professional at Lake of the Ozarks, we can discuss your options, offer competitive 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

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.

Finding the Best Location For a Second Home at Lake Of The Ozarks

Location, location, location - this is the big topic that everyone thinks about when purchasing a vacation home at Lake of the Ozarks. Which side of the Lake do you want to live on? What types of amenities do you want close by? What type of home do you want? These are just a few questions that a real estate agent will be able to guide you through as you start your search for the best vacation home in Missouri. If you are just at the beginning of your search, you may want to know about the communities where you can buy a home - so we have just that for you. Here are just a few of the amazing places you can live when you purchase a vacation home at Lake of the Ozarks.

The Village of the Four Seasons

If you are looking for a place to buy a home that is close to all of the amenities and has a vast array of property styles, this is it. With lake views, lake access, and even exclusive amenities, you will love The Village of the Four Seasons community and Team Lasson would be honored to assist you in getting pre-approved. Here are just a few of the benefits to choosing The Village of the Four Seasons:

• Pools
• Playgrounds
• Fitness Center
• Tennis Courts
• Interior Lakes
• Community Center
• Campground
• Boat Storage
• Boat Ramps
• Basketball
• Bocce Ball

Old Kinderhook

If you are interested in purchasing a home in Camdenton, MO, the Old Kinderhook community is an amazing choice. The combination of luxury living with different types of homes, cottages, patio homes, lakefront condominiums, and even estate homes makes it easy to find anything you could dream of. Here are a few things available at Old Kinderhook to make your stay even better:

• Golf
• Spa
• Boating
• Outdoor Ice Skating Rink
• The Sand, and more

Porto Cima

Porto Cima was designed to be one of the finest golf and boat communities in the Midwest. The subtle Mediterranean theme combined with the special privileges that are only available when you own a home in Porto Cima makes the experience superb. In addition, if you are looking for access to the best golf courses at Lake of the Ozarks, this is just one of the perks. Here are a few other things you get to enjoy when you live inside the limits of Porto Cima:

• Golf Shop
• Restaurant
• Member dining and the 19th Hole Lounge
• Exercise facilities
• Outdoor dining overlooking Hole #18 and Lake of the Ozarks
• Banquet facility
• Private events facility
• Ladies and men’s locker rooms, each featuring its own fitness area

Villages at Shawnee Bend

This community is situated on the southern shores of Shawnee Bend and it offers an incredible combination of privacy and seclusion. If you are looking for a home in one of the premier luxury home development areas, this is for you. Not only will you enjoy the privacy that a home in the Villages at Shawnee Bend can provide, but you will also have easy access to the Lake area activities. Here are a few other amenities that are available:

• Large, naturally wooded homesite choices
• Ten miles of unspoiled shoreline
• Championship tennis courts
• Community pool & clubhouse
• Community areas and natural habitat land reserves
• Park & playground areas
• Community marina

Now Is The Time to Invest in a New Property

If you have been waiting for just the right moment to buy a vacation home at Lake of the Ozark, this is the time. We are seeing the most incredible rates for our customers right now, and we want you to be the next. Wait no longer and get your application submitted on our website. There is still time to lock in the rates, and we look forward to assisting you with your Missouri Mortgage.

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.

5 Things to Know About Mortgage Insurance

When you are purchasing a new home, one aspect to prepare for is mortgage insurance. Mortgage insurance can be a huge asset to homebuyers, as it can allow them to purchase a home without having to put the full 20% down. Here are a few things you will want to know about mortgage insurance as you go through the process of purchasing your next vacation home at the Lake of the Ozarks.

What is PMI (Private Mortgage Insurance)?

Generally, if your mortgage down payment is less than 20% you will be required to carry mortgage insurance. This isn’t to be confused with homeowner's insurance, as they are two separate points of coverage protecting from two different events. The basis of it is that if a borrower were to stop payments on their mortgage, the insurance company would make sure that the lender is paid.

Will You Need Mortgage Insurance?

If you are able to pay the full 20% down, you will not need mortgage insurance. One interesting aspect is that if you are required to purchase mortgage insurance when you first get your loan, you can often request to cancel it after a certain period of time, usually when your loan reaches a point that you have 20% equity in the property.

What Types of Mortgage Insurance Are Available?

There are commonly two types of mortgage insurance available, private and public. If you get private mortgage insurance, it means you have a conventional loan and that the insurance is obtained through a PMI company. If you have public mortgage insurance, it means that your insurance is bought from the government and is usually paired with a government loan, such as FHA. The mortgage insurance that you will be required to obtain will depend on the type of loan that you are choosing, but we can help you with this as we progress through your loan process.

How Long Do I Have to Keep the PMI?

As a general rule, you usually pay the insurance premiums until your loan-to-value (LTV) ratio hits 80%. The LTV is essentially the amount of money that you borrowed and then divided by the value of the property you bought. You can often cancel the mortgage insurance policy when you have 20% of the home’s equity built up!

How Much Does PMI Cost?

The premiums for a conventional loan can vary, but a good rule of thumb is that the lower your down payment, and/or the lower your credit score, the higher your premium will be. Generally, the premiums can range from $30-$70 per month for every $100,000 borrowed. However, on FHA loans, there are some additional fees. There is a UFMIP (up front mortgage insurance premium) as well as an annual premium that will be collected monthly. For VA loans, you will have an upfront fee, but no annual or monthly premiums, unless you are exempt from the funding fee.

It's a Great Time to Buy

If you have further questions about this, we invite you to fill out the application for a loan on our website (www.YourLakeLoan.com), and we can talk with you further about the details that are specific to you! We look forward to discussing your options when it comes to your financing needs, and we’re 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

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.