Overview of Oklahoma Mortgages
With its wide array of landscapes, it’s no wonder so many Americans choose to call Oklahoma home. Mortgage rates in the Sooner State tend to be higher than national averages, while home prices are generally well below nationwide marks. Oklahoma counties’ conforming loan and FHA limits hold steady at the standard limits, though.
|30 year fixed||3.19%||3.19%||0.00|
|15 year fixed||2.63%||2.63%||0.00|
|30 yr fixed mtg refi||2.99%||2.99%||0.00|
|15 yr fixed mtg refi||2.13%||2.13%||0.00|
|7/1 ARM refi||3.63%||3.63%||0.00|
|15 yr jumbo fixed mtg refi||2.63%||2.53%||+0.09|
National Mortgage Rates
Historical Mortgage Rates in Oklahoma
Oklahoma Mortgage Rates Quick Facts
- Median Home Value: $147,000 (U.S. Census Bureau)
- Loan Funding Rate: 52.5% (CFPB)
- Homeownership Rate: 68.8% (St. Louis Fed)
- Median Monthly Homeownership Costs: $1,234 (U.S. Census Bureau)
Home to plains, mountains, forests and even lakes, Oklahoma is full of stunning vistas. Oklahoma’s capital, Oklahoma City, houses the National Cowboy & Western Heritage Museum, along with a vibrant dining and nightlife scene.
Homebuyers will find that Oklahoma mortgage rates are historically above the national average.
A financial advisor in Oklahoma can help you plan for the homebuying process. Financial advisors can also help with investing and financial plans, including tax, retirement and estate planning, to make sure you are preparing for the future.
Oklahoma Historic Mortgage Rates*
|Year||Oklahoma Rate||U.S. Rate|
*The FHFA stopped reporting new data in 2018.
Oklahoma Mortgages Overview
Oklahoma homes are valued well below the rest of the nation, with $147,000 as its median home value compared to the U.S. median of $240,500.
The conforming limits for Oklahoma counties are all at the standard $548,250. FHA limits are also at the usual $356,362. Each of these are an indication of the affordability of the state’s real estate market.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
Oklahoma is a non-recourse state. This means that if your home were to go into foreclosure, your lender is not allowed to come after your assets or savings for any difference between your home’s worth and the amount you have left on your mortgage. While you are probably not searching for a home with the intention of later going into foreclosure, it is still useful to know you would stand were your circumstances to change.
Oklahoma state law requires home sellers to provide buyers with a disclosure form listing details on the property. The list should come from the Oklahoma Real Estate Commission form. The purpose of these disclosures is to protect buyers, but you should always get a quality home inspection regardless of the law.
30-Year Fixed Mortgage Rates in Oklahoma
The most common type of home loan is a 30-year fixed rate mortgage. With this mortgage, your interest rate remains the same for the duration of the loan’s life. This makes it a very dependable home loan and it’s easier to budget for your monthly payments as they will stay the same (unless you refinance, of course). Over the course of paying off this mortgage, more of your money will go toward paying equity and less toward paying interest.
You can also get a 15-year fixed-rate mortgage which will have a lower interest rate. Your monthly payments will be higher with a 15-year loan, though, as you are paying off the same amount of money in less time. Longer terms, such as 40-year fixed-rate mortgages also but the downside is you’ll pay more interest with this loan.
The average Oklahoma rate for a fixed 30-year mortgage is 2.56% (Zillow, Jan. 2021).
Oklahoma Jumbo Loan Rates
Oklahoma county conforming loan limits are all $548,250, a nod to the affordability of buying real estate in the state. That means that if you need to take out a home loan that is bigger than $548,250, you will be taking on what is known as a jumbo loan. If you are weighing whether a jumbo loan is right for you, it is important to be aware that they are accompanied by higher interest rates as compared to standard or “conforming” loans (loans which are equal to or less than $548,250 in Oklahoma). Note that jumbo loan rates in Oklahoma are currently about even with fixed rates.
The average 30-year fixed jumbo loan rate in Oklahoma is 2.53% (Zillow, Jan. 2021).
Oklahoma ARM Loan Rates
An ARM, or adjustable-rate mortgage, is what its name implies. That is, it is a mortgage which has an interest rate that can adjust or change over the life of the loan. An adjustable-rate mortgage usually comes with a lower interest rate than a fixed-rate mortgage for an introductory period. That initial period lasts for one, three, five, seven or 10 years, depending on the loan’s terms. After that time frame, the interest rate is free to change, meaning it typically increases. It is not hard to see how a buyer might fall behind on payments with an ARM.
It is important to note however, that an ARM’s terms will list an interest rate cap, meaning it will specify the highest possible level that the interest rate can reach. This protects you from having your interest rate jump to sky-high levels overnight. It is very important to assess the interest rate cap on an ARM to make sure that it is something you can afford to pay. While lower than usual, ARM rates are still higher than both jumbo loans rates and fixed rates.
The average rate for a 5/1 ARM in Oklahoma is 2.94% (Zillow, Jan. 2021).
Oklahoma Mortgage Resources
Some Okies, whether first-time homebuyers or not, may be eligible for financial assistance in the mortgage process.
The Oklahoma Housing Finance Agency offers Advantage Loans that include 3.5% or 5.0% down payment grant assistance and Mortgage Credit Certificates (MCC). An MCC reduces how much a borrower owes in federal taxes so that they can claim a percentage of their mortgage interest (up to $2,000 per year) as a tax credit on their tax return.
|Resource||Problem or Issue||Who Qualifies|
|Oklahoma Housing Finance Authority||Down payment/closing cost assistance.||OHFA loans are available for first- and non-first-time homebuyers that fall under the eligibility requirements.|
|USDA Rural Development - Single family loans||Offers payment assistance to increase an applicant’s repayment ability.||Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; Not be suspended or debarred from participation in federal programs.|
Rural Oklahoma communities are also served by the United States Department of Agriculture Rural Development. The USDA offers nationwide programs that provide grants and loans for qualifying residents in rural areas who want to buy a new home or repair their current home.
Oklahoma Mortgage Taxes
Oklahoma charges taxes on real estate transfers. The deed stamp tax in Oklahoma is $0.75 per $500, or 0.15%. The mortgage registration tax is $0.02 to $0.10 per $100, depending on the term of the mortgage. The seller typically covers this fee in Oklahoma.
Homeowners can deduct the mortgage interest that they pay from their taxable income when filing federal income taxes. In Oklahoma, homeowners can double this deduction by including it on state income taxes as well.
Oklahoma Mortgage Refinance
Sooner State homeowners who want to refinance can look into the High Loan-to-Value Refinance Option from Fannie Mae. Each of these were created to replace the Home Affordable Refinance Program (HARP).
If you don’t qualify for these, you still have options. You can work with the lender who issued your current mortgage to come up with a new plan that works better for your particular situation. On the other hand, you are not obligated to work with this lender, meaning that you are free to look around and compare rates from other refinance lenders to find a solution you are comfortable with.
Best Places To Get A Mortgage
SmartAsset’s interactive map highlights the best counties in the U.S. (and in each state) for securing a home mortgage. Hover over states and counties to see rankings and data points for each region, or use the map’s tabs to view the top counties for each of the factors included in our analysis.
Methodology In order to determine the best places in the country to get a mortgage, our study compared four factors, including overall borrowing costs, likelihood of securing a mortgage, property taxes and annual mortgage payments.
To calculate the overall borrowing costs, we analyzed the expected costs throughout the first five years for a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to mortgage originations (secured mortgages) in each county. Annual mortgage payments are a measure of the annual principal and interest payments for a $200,000 loan in that location using average mortgage rates in each county.
Finally, we ranked locations based on these four factors, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.
Sources: Mortgage Bankers Association, US Census Bureau 2018 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset