Who's hoping to move to the Lake of the Ozarks soon? Ever since the pandemic started, this area's real estate market has boomed! If you're looking to move here, we encourage you to reach out to one of our experienced mortgage lenders at the Lake of the Ozarks. Keep reading this week's blog to learn about some of the mortgage financing options we offer to fit your needs! Call First Bank of the Lake today at (573) 348-2265.
Fixed Rate Mortgage
Planning to stay in your current home for a while and looking for stable monthly payments?
With a Fixed-Rate Mortgage, you’ll know exactly what your monthly principal and interest payments will be for the life of the loan. The interest is locked in, so you’ll have a consistent monthly payment and have the flexibility to choose the length of your loan. It’s a perfect solution if you plan to stay in your home for a long period of time and have the peace of mind knowing that your monthly payments won’t change.
Unlike an adjustable-rate mortgage (ARM), with rates that fluctuate over time, choosing a fixed-rate loan allows you to avoid unexpected increases in payment during the loan period. A fixed-rate mortgage’s consistent payment schedule gives you the ability to plan a budget and pay other expenses without jeopardizing your mortgage payment.
A variety of loan terms are available. The overall interest you pay is more over the life of the longer-term loan, but a short-term loan often has a higher monthly principal and interest payment.
Key Features:
- A variety of loan terms are available.
- Consistent payments for the life of the loan.
- Low down payment options.
- Single family loan amounts up to $510,400.
- Attractive interest rates and low closing costs.
Let us help with a fixed-rate option that works best for your specific needs. Complete an application for a fixed-rate mortgage to Get Started today!!
Adjustable Rate Mortgage (ARM)
Are you a frequent mover or planning to be in your home for a short time?
We here to help. ARMs can be a popular mortgage choice when interest rates are high, if you only plan to stay in your home for a few years, or if you plan to refinance down the road. Most ARM loans feature an initial rate period, during which the interest rate, principal and interest payments remain the same. Once the initial rate period expires, the interest rate will adjust once per year for the remainder of the loan term. The adjustments are based on a fluctuating index plus a margin. When the interest rate adjusts, your monthly payment will usually increase if rates go up or decrease if interest rates go down
Often, an ARM loan may have a lower starting principal and interest payment, but at the end of the ARM loan’s initial rate period, the interest rate and monthly principal and interest payment could go up. If that happens, you will need to be prepared to make bigger payments. To help avoid significant fluctuations, interest rate caps limit how much the interest rate can go up or down at each interest rate adjustment and over the life of the loan.
Key Features:
- Available in 5/1 term.
- Fixed rate for the first five years.
- No private mortgage insurance.
- Variable rate can adjust up or down at the end of the fixed term.
- Rate increases are capped at a pre-set maximum.
- Attractive interest rates and low closing costs.
ARM loans are named by the duration of the initial rate period and how often the rate will adjust thereafter. First Bank of the Lake offers a 5/1 Adjustable Rate Mortgage:
The “5” stands for the 5-year initial rate period during which the interest rate remains the same.
The “1” shows that the interest rate can adjust once per year after the initial rate period expires. An ARM loan may be a good option if you plan to move or refinance within a few years or if you expect your income to grow in the future.
Let us help see if an adjustable-rate mortgage is right for you. To apply for an Adjustable Rate Mortgage (ARM), contact your Loan Officer who will email an application to you.
Jumbo Loans
Looking to buy a home in a higher price range?
We’ve got you covered. If you’re buying, financing, or building a home with a higher property value and can manage larger monthly mortgage payments, a jumbo loan, also referred to as a non-conforming loan, may be a good choice for you.
“Non-conforming” refers to loan amounts higher than the maximum conforming limits available for Fannie Mae loans. Jumbo loans are available in a variety of fixed-rate and adjustable-rate options. Although they usually feature both a higher down payment amount and higher interest rate than standard mortgages, a fixed or variable-rate jumbo loan can help some people accommodate large purchases.
Key Features:
- Home financing option above $510,400.
- Variety of loan terms are available.
- Financing for primary residences and vacation homes.
- Fixed rate, adjustable rate and interest-only payment options.
- Purchase, Refinance, and Construction options available.
- Attractive interest rates and low closing costs.
Let us help finance your luxury home. Complete an application for a fixed-rate mortgage to Get Started today! To apply for an Adjustable Rate Mortgage (ARM), contact your Loan Officer who will email an application to you.
All of us here at First Bank of the Lake hope that you found this blog helpful and enlightening when searching for the right home loan to fit your needs. These are just a few of the mortgage financing options we offer. Stay tuned next month for when we revel more options in the second part of this blog series. If you have any questions, please do not hesitate to call us at the phone number listed below.
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