At First Bank of the Lake, we hope you enjoyed part 1 of our blog on Applying for a Mortgage at First Bank of the Lake. As you can tell, we have a number of mortgage options for you to choose from to best suit your needs. Last week we talked about 3 of our more standard mortgages … Fixed Rate Mortgages, Construction Permanent Loans, and Bridge Loans. This week we are going to go into more detail about 4 other types of loans. If you are thinking about buying, building, or refinancing a home at Lake of the Ozarks, read on! We have the information you need to make the best decision on what type of loan would be best for your situation. When you are ready to make the move, we invite you to reach out to one of our mortgage lenders in Osage Beach to get started.
Adjustable Rate Mortgage (ARM)
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
Jumbo Loans
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.
Residential Lot Loans
When you find the perfect lot, you don’t need to wait until
you are ready to build. You can purchase the lot now, work on creating your new
home plans, and then select a builder. When you’re ready, we can also provide
the construction loan and permanent financing. With so many considerations to
make while preparing to build, let us take care of the lot financing.
Key Features:
- Loan
amounts up to 1 million.
- Three
financing options available, including interest only and fixed rate loans.
- Low
down payment options.
- In-house
underwriting, processing and closing.
- Up to
10 acres allowed.
When it comes to finding a lot
that works for you, you should consider:
- Your
price range.
- Zoning
requirements for your desired area.
- Annual
tax rate on the lot.
- Ordinances and covenants, including homeowner’s association (HOA).
Portfolio Loans
Our in-house portfolio loans can help potential buyers with
special circumstances or atypical financing requirements, which can make it
difficult to qualify for a conventional home loan. Portfolio loans offer
homebuyers and homeowners with greater flexibility in the loan approval
process. They feature fixed and adjustable rate terms, attractive rates, low
closing costs and local lending decisions.
Key Features:
- Loan
amounts from $300,000 to $30 million.
- In-house
processing, underwriting and closing.
- Low down
payment options.
- Expanded
guidelines and specialized features.
- Interest-only
options.
- Financing
options for self-employed borrowers.
- Bridge
financing.
- Pledged
assets in lieu of cash.
- For
primary or vacation homes.
- No
prepayment penalty.
- No
monthly mortgage insurance.
- Escrow for Homeowner’s Insurance and Taxes not required.
When it comes to home loans, there’s no such thing as a one-size-fits-all. That’s why First Bank of the Lake offers different types of home loans to meet a variety of needs. Sometimes
the specifics when buying a house at the Lake of the Ozarks aren’t standard,
but that doesn’t make it impossible. Our
lending experts in Osage Beach are well-versed in all our loan products and are
solution-focused. It is our goal to help
you reach your goal of buying your dream home. If you have any questions, we encourage
you to give us a call. To stay informed
with all our latest tips and information about banking at the Lake of the Ozarks,
please follow us on our social media channels below!
(573) 348-2265
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