Oklahoma's homeownership rate is slightly above the national average. If you're looking to purchase a home in the Sooner State, many factors come into play, such as getting a mortgage. One element to consider when selecting a home loan is your interest rate. A favorable rate affects how much you'll pay over the life of the loan. Looking for the best mortgage rates in Oklahoma can make your homeownership journey more affordable. Start by researching and comparing rates from various lenders to make a financially savvy choice.
Current Mortgage Rates in Oklahoma
According to FRED Economic Data, Oklahoma's homeownership rate for 2022 was 68.5%, slightly above the national average of 65.9%. Mortgages have likely played a significant role in helping Oklahomans become homeowners.
If you’re looking to purchase a home, it’s wise to keep track of current mortgage rates in Oklahoma. Generally speaking, they're a bit lower than national averages. For instance, the average 30-year fixed mortgage rate in Oklahoma is 6.90%, compared to 7.08% nationally. The 15-year fixed rate is almost identical — 6.31% in Oklahoma and 6.32% in the U.S. The 5-year adjustable rate is 7.38% in Oklahoma, slightly above the U.S. average of 7.21%.
Remember, mortgage rates fluctuate based on economic conditions, housing market trends and lender policies. Keeping an eye on how they move over time is a good idea. Another consideration is the mortgage types available in Oklahoma. Rates also vary between them, so be sure to explore your options before you decide.
Finding the Best Mortgage Rates in Oklahoma
Landing competitive rates doesn't just mean cheaper monthly payments — it can free up funds for other essential life expenses and long-term investments. Let's dig into specific ways to get the best mortgage rates in Oklahoma.
Opt for a Shorter Loan Term: A shorter loan, like a 15-year mortgage, generally offers lower interest rates than its 30-year counterpart. Over time, the difference can save you a substantial amount.
Research Market Trends: Mortgage rates can fluctuate due to economic factors like inflation or federal interest rate changes. Keeping an eye on these trends allows you to time your mortgage application when rates are favorable. For example, if you notice figures trending downward, it might be wise to lock in a rate before they rise again.
Use Discount Points: Buying mortgage discount points means paying some interest upfront to lower your rate over the life of the loan. If your current rate is 6.90%, purchasing a point could reduce it to around 6.65%, depending on the lender. This strategy is particularly effective if you're planning to live in the home for a long time, as the long-term savings will outweigh the upfront cost.
Show Larger Financial Reserves: Lenders feel more at ease if they see you have substantial savings after your down payment and closing costs. Having three to six months' worth of mortgage payments in reserve can make you a more attractive borrower, potentially earning you a lower rate.
Avoid New Debt: When lenders assess your application, they look at your debt-to-income ratio. Any new debt can tip this balance and make you appear risky. Holding off on new financial obligations can improve this ratio, increasing your chances for a better mortgage rate.
By applying these strategies, you're taking an active role in creating your financial future that can result in lower mortgage costs for you in Oklahoma.
Mortgage Types in Oklahoma
The average home value in Oklahoma is approximately $198,629, almost half of the national average of $349,770. Knowing these figures can help you gauge how much you might need to borrow and can guide your choice of mortgage type. Despite the relative affordability of homes in Oklahoma, a mortgage can still help you purchase your dream home without draining your savings. There are plenty of options in Oklahoma to fit your unique situation.
Here's a table that lays out the details:
Typical Eligibility Requirements
Idea Borrower Profile
Borrowers with a solid credit history, steady income and the ability to make a substantial down payment.
Ideal for first-time homebuyers, those who have a lower credit score or those who can only afford a small down payment.
Veterans, active-duty service members and certain spouses who may not have a strong credit history or the funds for a down payment.
Better for borrowers looking to purchase in rural settings and who meet the income criteria, even if they can't afford a large down payment.
Understanding different mortgage types provides a good overview of your borrowing options, but diving into rate structures adds depth to that knowledge. Remember, the rate structure you choose directly impacts your monthly payments and overall loan cost. Here are the two main rate structures to consider:
Fixed-Rate Mortgages: Your interest rate remains constant, making your monthly payments predictable. They're great for long-term planning, but the downside is that your rate won't change if rates drop. Ideal for those planning to stay in their home for many years.
Adjustable-Rate Mortgages: These start with a lower rate, but it can fluctuate after the initial fixed period, making future payments less predictable. They might be a better fit for those who expect to move or refinance before the rate increases.
Both options get you to your destination, but they operate differently under various conditions. That's why knowing both elements — mortgage types and rate structures — is key to tailoring a loan that fits your financial profile.
A mortgage calculator, like the one available on MoneyGeek, can be a game-changer in your mortgage journey. It shows you how different mortgage rates, loan amounts and terms will impact your monthly payments. This way, you can directly see how current mortgage rates in Oklahoma affect your budget. It’s best to experiment with it — plug in different numbers and scenarios. This hands-on approach can help you pinpoint the right mortgage for you in Oklahoma, taking a lot of guesswork out of the equation.
How to Get a Mortgage in Oklahoma
Understanding how to secure a mortgage in Oklahoma allows you to take control of the homebuying process and helps you prepare for each step, reducing surprises and setbacks. Being informed allows you to find favorable terms and the best mortgage deal in the Sooner State. Let's dive into the steps.
Save for Down Payment
The down payment is typically 3–20% of the home’s value. More money down means less to borrow and a smaller monthly payment. Consider setting up a dedicated savings account and contributing to it regularly to reach your down payment goal faster.
A pre-approval letter from a lender shows sellers that you're a serious, qualified buyer. It can give you an edge in competitive markets and provides a realistic picture of how much you can borrow, streamlining your search process.
Rates and terms vary among lenders. Request quotes from several lenders, including your own bank, online lenders and credit unions. Use these offers to negotiate and find the most favorable terms.
Choose a Mortgage Type
Oklahoma offers different mortgage types — fixed-rate and adjustable-rate are the most common. The former offers stability but often has a higher initial rate. The latter can save money initially but carries the risk of the rate (and your payment) increasing in the future.
Submit Your Application
Once you've picked a lender, you'll submit various documents like W-2s, tax returns and recent pay stubs. Ensure all your information is accurate to speed up the approval process.
Undergo a Home Appraisal
After your application is reviewed, the lender will schedule a home appraisal. It confirms that the loan amount you requested is appropriate for the home's value. If the appraisal comes in low, you might have to renegotiate the terms with the seller or find another property.
Close the Deal
This is the final step, where you’ll sign all legal documents, finalize your mortgage and take ownership of the home. Ensure you understand all the terms and conditions before signing. Once done, you'll receive the keys to your new home.
Each step in securing a mortgage in Oklahoma comes with different considerations. Being prepared and informed facilitates your mortgage application journey and helps you find the best mortgage deal in Oklahoma.
Mortgage Programs in Oklahoma
Owning a home isn't just about covering the mortgage — other expenses like property taxes and maintenance can add up. Fortunately, there are programs designed to ease this financial load. The Oklahoma Housing Finance Agency offers some that can make homeownership more accessible and affordable. By taking advantage of them, you can secure better mortgage rates in Oklahoma and free up money for other financial obligations.
OHFA Homebuyer Down Payment and/or Closing Cost Assistance
If you're eyeing a new home in the Sooner State but grappling with upfront costs like hefty down payments and closing costs, the OHFA Homebuyer Down Payment and/or Closing Cost Assistance can be a game-changer. OHFA grants you 3.5% of your home's total loan amount, reducing the amount you need to pay upfront.
To qualify, you'll need a mid-credit score of 640 or higher and be a legal U.S. resident. The home you're buying must be in Oklahoma and become your main residence within two months of closing.
Special Interest Rates
Special interest rates in Oklahoma are not exclusive to high-income earners — they’re also within reach for community heroes. Those include teachers, firefighters, law enforcement officers and state employees. If you're among these dedicated professionals, the OHFA has mortgage programs custom-made to help you secure the best mortgage rates in Oklahoma.
Basic eligibility rules apply across these programs: the home you're buying must be in Oklahoma and serve as your primary residence, occupied within 60 days of closing. Income and credit score criteria are also in play.
OHFA 4Teachers is specifically designed for educators holding a current Oklahoma teaching certificate. OHFA Shield targets firefighters, law enforcement and EMS workers, offering perks tailored to these vital roles. State employees can also tap into these special rates. By taking advantage of programs with specialty rates, you can dramatically reduce the long-term costs of your mortgage, making homeownership more accessible and financially manageable.
Frequently Asked Questions
Having the right information at your fingertips can make all the difference. Our FAQ section dives into the nitty-gritty about mortgage rates in Oklahoma, providing you with detailed answers to common questions.
About Christopher Boston
- FRED Economic Data. "Homeownership Rate for Oklahoma." Accessed September 17, 2023.
- FRED Economic Data. "Homeownership Rate in the United States." Accessed September 17, 2023.
- Oklahoma Housing Finance Agency. "Home Page." Accessed September 17, 2023.
- Oklahoma Housing Finance Agency. "Homebuyer Down Payment and/or Closing Cost Assistance." Accessed September 17, 2023.
- Oklahoma Housing Finance Agency. "Special Interest Rates." Accessed September 17, 2023.
- Zillow. "Oklahoma Home Values." Accessed September 17, 2023.