Mortgage Rates Oklahoma

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    Mortgage Rates Oklahoma: How Do I Find The Best Home Deals?

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    On one hand, Oklahoma’s median home value is among the lowest in the nation, thanks to a large amount of land fit for housing developments. On the other hand, the low median home price leads to high demand because the market attracts more buyers. 

    Knowing the current Oklahoma mortgage rates can boost your odds of finding good home deals sooner in the Sooner State. This guide will help you learn everything you need to know about mortgage rates in Oklahoma and, hopefully, stand out from the competition! 

    Keep reading to find out the latest mortgage and refinance rates in the state as well as the state’s homebuyer assistance programs.

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    Home Loan Options In Oklahoma 

    The average homebuyer has three main loan types they can choose from to fund their home. Since each of these financial products has its features, benefits, and caveats, understanding them is essential so you can find which one best suits your needs.

    Conventional Home Loan 

    Conventional mortgages are most home loans that aren’t offered by a government entity. They’re commonly offered by private mortgage companies and feature loan amount limits set by the Federal Housing Finance Agency – in all of Oklahoma, these conforming loan limits are set at the national standard of $548,250.

    Fixed-Rate Mortgage

    Fixed-rate mortgages feature a stable mortgage rate that won’t change until it’s paid off. This translates into constant monthly payments immune from market fluctuations. 

    A fixed-rate loan’s stability makes them popular with long-term financial planners. However, to balance out its predictability, fixed-rate loans tend to have a higher interest rate.

    People most often take 30-year fixed loan terms because of their affordable mortgage payments. However, you can choose 15-year or 20-year loan terms for lower rates. Keep in mind that this will increase your monthly payment.

    Adjustable-Rate Mortgage (ARM)

    An adjustable-rate mortgage has rates that will adjust annually based on a market index. This means that your monthly payments may rise or fall from one year to the next. 

    Most ARMs also feature an introductory period with a fixed interest rate. The lower mortgage rate on these introductory periods makes ARMs good for short-term savings. The length of your introductory period is usually written on the ARM’s title. For example, a 5/1 ARM signifies five years of fixed interest rates. 

    Jumbo Mortgage

    You can opt for jumbo loans if you’re looking to buy a higher-priced property. While jumbo mortgages can exceed FHFA loan limits, this is balanced out by higher interest rates.

    Government-Backed Loan Programs

    The federal government runs three major loan programs primarily aimed at specific demographics, like veterans and rural residents. They offer plenty of benefits, like competitive rates and lower down payment requirements.

    Here are the three major government loan programs:

    • FHA loans: These loans are meant to improve the homeownership rate among low-income residents and feature more lenient qualification requirements. However, these benefits are balanced out by the lower limits and mandatory mortgage insurance premiums for the entire loan’s life. 
    • USDA loans: The United States Department of Agriculture designed these loans to improve rural communities, which is why they have strict area requirements. If you purchase a home in a USDA-approved area, you’ll receive a zero-down loan with low mortgage insurance fees.
    • VA loans: These loans are only available to active and former military personnel. You can get a zero-down loan by paying a VA funding fee worth 2.3% of the mortgage, but you can drive your VA loan fees down by putting more money down. 

    Mortgage Refinancing

    A refinance provides you with a new loan to pay off your current mortgage. There are two major refinance loan types, designed to accomplish different goals:

    • Rate and term refinance: This type of refinancing alters your loan’s type and length. You can use this to either extend or shorten a loan to adjust your monthly payment amount. Alternatively, you can change its type from an ARM into a fixed-rate so you can avoid the unpredictable adjustable phase. 
    • Cash-out refinance: A cash-out refi converts your home equity into cash with a loan larger than your current mortgage balance. Any money left after paying off the mortgage can be used for other needs. 

    Compare Mortgage Rates In Oklahoma 

    Historically, Oklahoma mortgage rates have been consistently above national average mortgage rates. Check the table below for a look at the most up-to-date mortgage and refinance rates in the state. All the rate information listed here is taken from America’s top lenders. 

    Today’s Mortgage Rates In Oklahoma

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    All listed home mortgage and refinance rates may change without prior notice. Your actual rate may vary depending on your financial circumstances and other factors.

    Use the calculator above this page for personalized Oklahoma mortgage rate estimates based on your financial information. 

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    First-Time Homebuyer Programs In Oklahoma

    Like many other states in the nation, Oklahoma offers several mortgage assistance programs. If you’re planning to call the state home at an affordable price, you can look into one of the programs offered by the Oklahoma Housing Finance Agency (OHFA). 

    OHFA Mortgage Programs

    The OHFA runs several loan programs with competitive rates for first-time and repeat homebuyers as well as people from certain professions. The eligibility requirements for these loans are as follows:

    • Have a minimum credit score of 640
    • Meet OHFA income limits which vary by program
    • Buy a primary residence in Oklahoma
    • Buy a single-family home under the purchase price limits

    OHFA’s two main homebuyer assistance loan types are:

    • OHFA GOLD: This program offers competitively-rated conventional and government loans for first-time homebuyers. As with most states, first-time homebuyers mean people who haven’t owned their own home in the past three years.
    • OHFA DREAM: OHFA’s second program features low-interest conventional and government loans for first-time and repeat homebuyers. 

    In addition to the two aforementioned programs, OHFA also runs profession-specific low-interest home loans for teachers, first responders, and state employees.

    OHFA Down Payment Assistance

    All OHFA loans feature down payment and closing cost grants worth up to 3.5% of the loan. To qualify, you must fulfill income and purchase price limits that vary by program. 

    Buying A Home In Oklahoma 

    Due to the higher demand, low home prices don't make it easier to buy a home. In fact, it can get even more challenging!

    Making mistakes in the home buying journey can cause you to lose out on your dream home or waste thousands of dollars. To prevent costly missteps and finally land your dream home, follow this guide to home buying!

    Step 1: Get Pre-Approved

    You need to start the mortgage process by contacting the lender/s of your choice. Once you pass a lender’s credit check, you’ll receive a pre-approval letter. 

    This document contains key details of your loan like its interest rate, loan type, and maximum loan amount. Your pre-approval letter acts as a sign of financial readiness to buy property and a budget guide for your house hunt. 

    Step 2: Recruit A Realtor

    The services of a locally experienced real estate agent are indispensable. They can secure the best homes at great prices and answer any questions about the neighborhood. To ensure you find the best realtor, pay close attention to their experience, number of homes sold, and review scores.

    Step 3: Start House Hunting

    Your house hunt should begin at the neighborhood level. Pick an area that fits your budget and search local listings to find the most affordable home there. If no homes fulfill all your needs, consider buying a fixer-upper and use the money you saved for home improvements.

    Step 4: Make An Offer

    You may face stiff competition for the home of your dreams. Consider offering more than the listed property value to catch the seller’s eye, but be sure to cConsult with your realtor beforehand so you don’t overpay. 

    Step 5: Do Your Due Diligence

    Schedule home inspections and appraisals before setting a closing date. If they find that the home is overvalued or has property defects, you still have time to renegotiate the deal with the seller.

    Step 6: Close The Deal

    Before closing day, prepare the money to pay your closing costs and lender fees. Have your realtor present during the paperwork signing so they can answer any questions you may have before finalizing the purchase. 

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    How To Get Better Oklahoma Mortgage Rates 

    Driving your mortgage rate down by a few points may not look like a lot of savings right now. However, lower rates mean you’ll spend less money paying interest and more money goes to pay your loan principal. 

    Follow these top tips to reduce your Oklahoma mortgage rates and save more money!

    Provide A Larger Down Payment

    A larger down payment reduces your mortgage balance, which means there’s less of a loan to pay back. If you put more money down, you’re also more likely to get better rates since the lender sees you as a less-risky borrower. Moreover, putting 20% worth of down payment allows you to avoid mortgage insurance premiums. 

    Take A Shorter Loan Term

    Shorter loans reduce your risk in the lender’s eyes, which allows you to get better rates. You also make fewer mortgage payments on a shorter loan, meaning you’re charged fewer interest expenses. This can add up to thousands of dollars of savings!

    Compare Offers From Multiple Lenders

    Lenders compete for your business by offering low rates or discounted origination fees. This makes shopping around for the best loan offer important – you may even get deals that you wouldn’t have found otherwise! 

    Ask your loan officer for standardized loan estimates, then compare them side-by-side so you can see which one offers the highest potential savings figures.

    Take Additional Rate Reduction Steps

    In addition to the three tips we shared above, there are some other methods you can try to reduce your rates:

    • Work with an independent mortgage broker
    • Buy discount points
    • Improve your credit score

    Closing Thoughts 

    Don’t let Oklahoma’s low home prices fool you – prices below the national average mean you’ll encounter fiercer competition for homes. However, knowing the local mortgage rates and understanding the home buying process can help you get ahead of other buyers.

    If you’re looking for the best mortgage deals in Oklahoma, Wesley LLC is here to help. Contact our professional team today for mortgage resources and advice!

    Written By Ed Wallace
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