The median home value in Oklahoma was $122,500 as of December 2018, according to Zillow data. This was well below the national median home sales price of $302,400, according to information from the U.S. Census Bureau.
Even though it’s relatively inexpensive to purchase a home in Oklahoma, many citizens will likely obtain a mortgage to make a house purchase. Further, current homeowners may seek out refinance loans to adjust their mortgage rate or term, or to access accrued equity from their house.
Finding the right mortgage or refinance loan requires some knowledge of these products and current market conditions, as well as time to compare various lenders and quotes.
Table of Contents: Oklahoma Mortgage
- Mortgage Rates in OK
- Mortgage Rate Factors in OK
- Get the Best Mortgage Rates in OK
- Best Mortgage Lenders in Oklahoma
Current Mortgage Rates in Oklahoma
Factors of Mortgage Rate Rates in Oklahoma
When shopping for mortgage rates, it’s best to get the lowest you can find. This will involve some comparison shopping and evaluating different quotes. Understanding the types of factors underwriters take into consideration will help you anticipate the kinds of rates you may see in your quotes, or take actions to encourage lower rates.
A few key factors that will impact the mortgage and refinance interest rates available to you include:
The Local Economy
Economic pressures, local and national, will always have an impact on mortgage interest rates. In some cases, a stronger economy may mean higher interest rates – but it could also mean that the average consumer has the means to handle the cost of a mortgage. Economic factors can be wide-scale or very local. While you can’t control the economy, you can take note of how it’s impacting mortgage and refinance rates in your area.
Your Credit Score
This number tells lenders how creditworthy you are. A higher score indicates that you can handle debt and can make payments according to schedule. Every creditor will pull your credit report before giving you a quote for an interest rate, no matter the loan type.
Before you give them permission to do this, you should check it out for yourself. By reviewing it on your own before a lender looks at it, you can get an idea of what’s recorded on it and ensure there is no damaging false information, or missing positive information.
The Property Type
Primary residences typically have the lowest rates. There is more risk involved with vacation and second homes. These types of properties typically have higher default rates than primary residences. Lenders often increase interest rates whenever there’s increased risk, so if you’re buying a second or vacation home, you should anticipate a higher-cost mortgage than if you were buying a primary residence.
The type of residence also plays a role: condominiums, manufactured homes, and properties with multiple units are also associated with higher rates of default than single-family homes.
The place the home is located matters in a number of ways. If you’re looking for a home in a rural area, you may be eligible for a USDA loan, which is backed by the U.S. Department of Agriculture. These are typically associated with lower rates. State laws also play a role in determining interest rates.
In Oklahoma, the average interest rate for a 30-year fixed-rate mortgage is 4.69 percent, the same as the national average. By comparison, Texas’ average rate for the same type of mortgage is 4.74 percent. For a $100,000 loan, the difference between Texas’ and Oklahoma’s average rates by the end of the 30-year term will be $1,083.
Down Payment and Loan Amount
For most mortgage loans, borrowers need to pay for a portion of the house upfront, and the remainder will be covered by the loan. Most mortgage types require down payments of at least 5 percent of the home’s sale price. Other loan programs may permit down payments of 3 percent, while others give borrowers the option to not put any money down, instead of borrowing 100 percent of the price.
It’s almost always advantageous to put a larger amount down when it’s financially feasible. Lenders typically give lower rates to people who make larger down payments or borrow smaller amounts. Creditors view these situations as less risky than someone who has a large loan they’ll have to pay off for many years to come.
Getting the Best Mortgage Rates in Oklahoma
Now that you know some of the most important factors for determining your mortgage or refinance interest rate in Oklahoma, it’s time to find a lender. Some financial institutions will offer you different loan types, terms, amounts, and interest rates.
Seventy-eight percent of borrowers in 2017 applied to just one lender, and just 4 percent applied to three or four. About half only seriously considered one lender with which to get their loan, according to the National Survey of Mortgage Originations, conducted by the Federal Housing Finance Agency and the Bureau of Consumer Financial Protection.
Shopping around can save you thousands of dollars. Chances are, applying to multiple lenders will give you access to various interest rate options, allowing you to select the lowest possibility.
The average spread between the highest and lowest mortgage loan quotes in 2017 was 0.46 percentage points, according to LendingTree. Over the course of a 30-year fixed-rate loan for $100,000, a borrower would save $9,682 by going with a 4 percent mortgage instead of one with a rate of 4.46 percent.
Shopping around matters for refinancing loans, too – perhaps even more so. In 2017, the average spread between the highest and lowest refinance loan quotes was 0.55 percentage points. For a 30-year fixed-rate refinance loan of $100,000, a consumer would save $11,608 with a 4 percent rate instead of a 4.55 percent rate.
Another way to lower the cost of a mortgage or refinance loan is to negotiate some of the closing costs. Closing costs refer to all the fees associated with originating a new loan, including pulling the credit report, underwriting, recording, appraising the property, and more.
Some fees are fixed by third parties, such as the appraisal fee, credit report fee, or flood certification fee. It may be difficult to negotiate, but it’s not impossible to bring down these costs. Other fees are set by governmental agencies and can’t be negotiated: This applies to taxes, city and county stamps, and recording fees, for instance.
While you may not be able to reduce all closing costs, there’s no harm in asking. Before paying full price, ask your lender, closing attorney, real estate agent, or another professional what each line item refers to, and whether you can get a discount or negotiate a lower rate.
Best Companies in Oklahoma
When you begin your mortgage or refinance lender search in Oklahoma, these four companies are great places to start:
- Rocket Mortgage: An extension of Quicken Loans, Rocket Mortgage allows consumers to apply for loans through a mobile app. This level of convenience makes it easy for people to become approved for a mortgage and review their quote. In some cases, applicants can get approved for a mortgage in less than 10 minutes, according to the company.
- New American Funding: This lender underwrites its own loans, which allows for some flexibility in its mortgage requirements. New American Funding has a branch in Tulsa, Oklahoma, and offers both mortgage and refinance loans.
- BOK Financial Corp.: This lender is the largest mortgage lender in Oklahoma, with 32,533 home loans originated between 2013 and 2019, according to Value Penguin. BOK Financial’s 21 Day to Close program helps consumers purchase a home quickly, and consumers can get a mortgage with just 3 percent down, which can come entirely from gift funds, if applicable. BOK Financial goes by various names depending on the state; in Oklahoma, residents may know it as Bank of Oklahoma, with mortgage centers in Tulsa, Broken Arrow, and Owasso.
- Arvest Bank: Between 2013 and 2019, Arvest Bank originated 31,371 mortgages, making it the second-largest home lender in Oklahoma, according to Value Penguin. Arvest offers a number of mortgage options, including conventional, FHA, USDA, VA, jumbo, construction and condo loans. They also offer special physician loans for either physician who have recently moved to Oklahoma, or Oklahoma residents who have recently become physicians. Arvest Bank has numerous mortgage centers throughout the state, including in Norman, Chickasha, Tahlequah, McAlester, and more.