Oklahoma Mortgage Refinance With Historically Low Rates
To Refinance or Not to Refinance Your Oklahoma Mortgage Loan?
The answer varies depending on how much longer you plan on living at your home, the tax bracket you fall into, and the costs and charges included when refinancing. There are also many other factors to consider when deciding to refinance your mortgage loan. Is the current interest rate low enough to save you money? 
Should you change the type of mortgage you currently have? How will refinancing affect your payments? These are great questions to ask yourself when deciding to refinance or not.
What's involved in refinancing?
In refinancing your mortgage, you are paying most of the same costs as your original mortgage. Basically you are paying off your original mortgage loan and obtaining a new one with a better rate. Make sure to find out all the costs involved when getting a new loan.
Will you save money when you refinance? To determine this you will need to find out what your new payment will be. To find out the length of time it will take to reclaim the costs of refinancing, divide your closing costs by the difference between your new and old monthly payments.
How many points will the lender charge to refinance? Lenders will offer a wide range of interest rates at different amount of points. A general rule is that each point adds about 1/8 to 1/25 of 1% to the interest rate. The more points a lender charges, the lower the interest rate on the mortgage loan and vice versa.
Will this affect the taxes you pay? Your tax payment may increase due to the less interest you deduct on your income tax return because of the lower interest rate on your mortgage loan. This in turn will decrease the total savings you might get from a lower-interest mortgage.
Do you have to refinance with the same lender? No you do not have to refinance your mortgage with the same lender. However, some lenders will offer certain incentives such as lower interest rates and reduced closing closts to keep your business. Shopping around is key before making a final decision. While deciding on which lender to go with, you might also want to consider other types of mortgages. Situation changes all the time so it doesn't hurt to see if other mortgage loans will suit you better.
"Oklahoma Families In Transition"
The 9 Factors That Affect Your Interest Rate! WHAT REALLY MATTERS WHEN YOU GO SHOPPING FOR MORTGAGE INTEREST RATES FOR OKLAHOMA HOME LOANS!
When you go shopping for the best mortgage rate you will need to understand the 9 factors that affect the rate you will be quoted from the lender you call.
One Oklahoma Home Loan lender may quote you their best rate but are the following 9 factors known? It’s very important to find the lender you trust the most and complete the loan application, then and only then, can your interest rate be considered as accurate.
Get Gary J. Randolph's RateWatch Reports now
1.
YOUR CREDIT SCORES. Your credit history is collected by 3 different credit bureaus. When you make an application for a home loan, the lender will get a credit score from each of the three credit bureaus. Most lenders use the median (numeric middle of the 3) as the score with which they will underwrite your loan. The higher your credit score, the better your credit grade. Most of the mortgage products on the market usually have a higher rate for lower scores and a lower rate for higher scores.
2.
YOUR LOAN-TO-VALUE (LTV) or "are you putting any money into the transaction for down payment?" Most traditional loan products that offer the most aggressive rates require at least 5% down. When you get a mortgage that requires no down payment, your rate will be about .25% to .375% higher.
3.
YOUR DEBT-TO-INCOME Ratio (DTI) Traditional underwriting guidelines require very specific documentation to prove your income. That income must be enough so that your DTI is somewhere between 40% and 50% of your gross monthly income, no more than 40% to 50% can go to your new housing payment and all of your other monthly debts. However, many borrowers today don't meet this guideline for various reasons. They may choose a mortgage that requires little to no income and/or asset documentation, which can add .25% to .50% more to the interest rate you get.
4.
THE ESCROW ACCOUNT. Traditional mortgages require that the lender set-up and maintain an escrow account to save and pay for your home owner's insurance and property taxes. However, many borrowers would rather manage those funds themselves. This might add slightly to the rate.
5.
HOW SOON YOU WILL BE CLOSING. Interest rates are usually locked for 15, 30, or 60 days. The longer your lock-in period, the higher the interest rate will be. However, if you are building 60+ days out we have an incredible extended lock program that allows you to lock in with a protective capped rate - so if rates go up, you are protected. BUT if rates go down 30 days prior to your scheduled closing, then you can lock in at that lower rate... so it is a win-win! We do not charge any extra closing cost like other lenders do for this opportunity, only a "good faith" deposit of $500 - that is like earnest money when you write a contract. It will be credited at 100% on your settlement statement at closing.
Below is a screen shot of a Mortgage Backed Security RateWatch tool available to lenders. This candlestick chart shows the volatility of the mortgage securities that makes interest rates move. As you can see in the chart below, the movement is up one day and then down the next. It's very important to ask if your Oklahoma Home Loan lender has this technology availble so you can get the best rate when shopping.
6.
WHO IS PAYING YOUR CLOSING COSTS. Many borrowers have a limited amount of funds available to use in the purchase of their new home. What many do not consider is that the closing costs have to be paid in addition to the down payment. There are 3 options available to pay closing costs :
1.
You can pay them yourself out of pocket. This is the lower rate option.
2.
You can negotiate the seller to pay part or all of them for you. You will still get the lowest rate but the cost of the house will likely go up.
3.
Your lender can pay them for you and build these costs into a higher interest rate.
7.
THE TYPE OF PROGRAM YOU CHOOSE. The longer the term, the higher the rate (15 year, 30 year, 40 year, etc.). Fixed rates are higher rates than Adjustable Rate Mortgages (ARMs). The longer the ARM fixed period, the higher the rate (3/1 ARM, 5/1 ARM, 7/1 ARM, etc.). If you add an interest only option, your rate will be higher. There are a number of other options that could add to the interest rate.
8.
THE SIZE OF YOUR LOAN. The rates change depending on the size of your loan. The best rates available are for loans between $60,000 and $417,000. Loans less that $60,000 or greater than $417,000 have a higher interest rate because of the size of the loan.
9.
THE TYPE OF PROPERTY. Rates may vary depending on whether you intend to live in your house (Owner Occupied) or if you plan to rent it out (Investment Property).
Now you know what makes your interest rates vary from lender to lender. Call a trusted Oklahoma Home Loan lender today and they will lead you down the right path.
Or,click here to receive Gary J. Randolph's Free RateWatch report:
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USDA: OKLAHOMA RURAL DEVELOPMENT HOUSING LOANS
The United States Department of Agriculture (USDA) is committed to the future of rural areas in Oklahoma & areas closely connected to larger cities like Oklahoma City by providing government guaranteed single family housing loans that are available for targeted Oklahoma towns and rural areas as defined on the USDA eligibility guide at USDA: Property Eligibility .
There are many benefits that make an USDA Oklahoma (or RD) loan a desirable option for Oklahoma homeowners looking to purchase their primary residence. Oklahoma RD loans provide no money down purchase options. Oklahoma rural development loans are government guaranteed loans that elliminate the requirement for monthly Private Mortgage Insurance. (PMI)
BENEFITS: Rural Development Oklahoma
Loans: RD Loans
- 100% Loan to Value (LTV) of appraised value for purchase, construction to permanent or rate & term refinanced homes.
- Fully amortized 30 year fixed rate loans only.
- No PMI insurance requirements.
- One Time Guarantee Fee, 2% of Loan Amount on Purchase Loans; 0.5% of Loan Amount on Refinances (Refinance from RD to RD ONLY).
- Income restrictions apply. See Income Eligibility for RD Loans
- 620 minimum credit score (middle score on credit bureau report)
- Up to 6% seller concessions are allowed toward closing costs
- Debt to Income (DTI) ratios are 29% / 41%. Debt To Income Ratios
- Gift Funds are allowed for closing costs and prepaid expenses.
LOAN PURPOSE
- Purchase a Single Family Residence (either new or existing), in an Eligible Area; and any Required Home Improvement(s), and Closing Costs. (No Maximum Purchase Price!)
- 100% Financing (100% of Appraised Value! eg: the appraised value could be more than your purchase amount which would allow rolling into the loan any closing costs or prepaid items )
- Refinance construction loans to permanent financing, and existing home (plus 1 Yr. per Cert. of Occupancy) Guaranteed & Direct loans to lower the rate and extend the term.
APPLICANT QUALIFICATIONS
Oklahoma mortgage lender:
- Household Income Cannot Exceed the Moderate Income Level. 115% National Median Income.
- Debt to Income (DTI) ratios are 29% / 41%.
- Household Income Must Be Dependable and Adequate.
- Loan applicant is unable to Qualify For a "Conventional" Mortgage Loan. (Does not have the funds to pay 20% down payment on the home)
- U.S. Citizen or Legally Admitted for Permanent Residence (with proper documentation)
- Personally Occupy the Home
- Complete a Home-Buyer Education Program (Underwriters discretion!)
- Seller concession maximum of 6% of sales price
1. Down Payment Assistance programs are allowed.
2. No secondary financing allowed!
LOAN TERMS
- 100% Mortgage Financing and Loan to Value.
- Fully amortized 30 year fixed rate loans only.
- No Down payment.
- No Mortgage Insurance
- One Time Guarantee Fee, 2% of Loan Amount on Purchase Loans; 0.5% of Loan Amount on Refinances (Refinance from RD to RD ONLY).
1. Guarantee Fee can be financed over appraised value, paid in cash by the borrower, or paid by seller at Closing.
2. Discount points CAN NOT be financed
- Real Estate Taxes and Hazard Insurance Premium How Escrow Works will be escrowed by the Lender.
- Maximum Sales Price and/or Loan Amount: Note: Based upon the applicant's income and loan repayment ability. Proposed PITI should be comparable to past monthly rental expenditure.
- Site Value Cannot Exceed 30% of the Property's Appraised Value.
INSPECTIONS
- Existing Homes must be Decent, Safe, Sanitary, and Thermal Efficient and Conform to HUD Handbooks 4150.2 and 4905.1.
- New construction, Minimum of Three inspections - Footing, Framing, and Final
- FHA Appraiser can do inspections or State Licensed Home Inspector
- Inspections required: Well Inspection, Water Test, Septic Inspection, Termite (not required on refinance)
- No Pools (unless appraiser notes small to no value on pool and U/W can request waiver)
PROCESSING
- Program requires Full Loan Application Documentation (Alternative Credit may be used.)
- The purchase agreement must state purchasing as "RD"
This information is meant to educate Oklahoma residents about the USDA RURAL DEVELOPMENT RD HOME LOANS in rural Ok and surrounding larger cities like Oklahoma City, Tulsa, Ponca City, Stillwater, Enid, Woodward, Elk City, Altus, Lawton, Chickasha, Ardmore, Ada, McAlester, Broken Bow, Edmond, Guthrie, Chandler, Shawnee, Chandler, Muskogee, Wagner, Guymon, Boise City, Beaver, Okarche, Kingfisher, Pauls Valley, Oklahoma rural development USDA home loan areas.
Oklahoma Refinance
Mortgage
Making It Easier for You
to Refinance Your Oklahoma
Mortgage Home Loan!
Recent action by the Federal Government to lower mortgage rates has resulted in some of the lowest refinance mortgage rates in recent history. And President Obama's Loan Modification Plan has made refinancing to a lower mortgage rate and payment easier for millions of Americans. This is one of the best times ever to refinance, so don't wait! Find out today about loan refinance options that will help you obtain a lower monthly mortgage payment.
Lowering Your Mortgage Payment is
Easier Than Ever
- Recent Fed action has caused mortgage rates to plummet! Refinance today to take advantage of a much lower rate and payment. If you wait, you might lose out.
- President Obama's Loan Modification Plan has opened the doors of refinancing for millions! Ask us about this today. ---Loan Application Info
- Change the term of your loan - if you're in a 15-year mortgage, refinancing to a 30-year fixed-rate mortgage could lower your payment significantly.
Keep More Money in Your Hands
- Today's extremely low mortgage rates mean you could pay less toward your mortgage every month and keep more money in your pocket.
- Use the extra money you save on your refinance to pay off high-interest debt, finance home improvements, or increase your retirement savings - whatever you want to do with it. It's your money - enjoy it!
No Pre-Payment Penalties
- Our Oklahoma refinance mortgage loans allow you to refinance your loan or pay off your mortgage early with absolutely no pre-payment penalties.
Most Popular Loans to Reduce Your
Monthly Payment for Oklahoma refinance
mortgage loans include:
* Conventional 15 or 30 year fixed rate mortgage.
* Refinance FHA Streamline Loans.
* Loan modifications made easy.
* VA Home Loan Refinance for Veterans and U.S. Military.
* Which is Better: A home equity loan or a Cash-Out Refinance?
* An Interest-Only loan can lower your mortgage payment.
* Adjustable Rate Mortgages (ARM).
Your Oklahoma mortgage can be refinanced now. Find out more @ --The Loan Process
Understanding Oklahoma City Mortgage Rates
Oklahoma City mortgage interest rates directly affect your home mortgage. That's why it is crucial to pay attention to the big picture when you are looking to buy a new home or refinance. Learn how the the Federal Reserve and government bonds affect mortgage rates.
What's Your Credit Score?
Your credit score affects the mortgage rate you'll qualify for. Go to Daily Rate Lock Advisory for more information about Oklahoma City mortgage rates. Interest rates can have a substantial impact on your life. Your mortgage, car, credit card payments, and investments - like stocks and bonds - are all based on interest rates. Lower interest rates allow you to purchase a larger home or refinance to take advantage of lower monthly payments.
How Do Changes in Interest Rates Affect Oklahoma Home Mortgages?
Oklahoma City interest rates directly affect home mortgage rates. If interest rates are high, your loan payments will be greater. If you are looking to buy a home, this means you will probably not get as much square footage per dollar.
On the other hand, high interest rates can help to curb inflation. This means the price of goods like food and gasoline will stay relatively low, and your paycheck will go further. If you're locked into a fixed-rate mortgage at a low interest rate, your income will stretch even further. And if you're able to save that extra cash, you'll be prepared to shop for a larger home when interest rates go down.
When interest rates are relatively low - especially if they drop to record lows - it is an ideal time to consider refinancing your home, particularly if you have an adjustable rate mortgage (ARM) that is set to increase soon. With a 30-year fixed mortgage, you could lock in the low rate and never have to worry about your payments increasing, no matter what happens to overall interest rates.
How Does the Federal Reserve System Affect Mortgage Interest Rates in Oklahoma City?
The U.S. Government created The Federal Reserve System, also known as the Fed, in 1913 to regulate the banking industry. The Fed's job is to maintain the stability of our nation's financial system and monetary policy. It contains a Board of Governors and 12 regional Federal Reserve banks. The Fed has the authority to set the federal funds rate - the rate banks charge each other for overnight loans, and the discount rate - the rate banks pay when they borrow from Federal Reserve banks.
When the Fed sees the economy growing faster than it should and there is a threat of inflation, it will usually raise interest rates. Then, when the economy cools off and the risk of a recession looms, the Fed lowers the interest rates in an attempt to spur growth. This often gives a boost to the housing market.
When the Fed increases interest rates, banks pay more for the money they borrow, which means they charge you more when you borrow money from them. The flip side is that when interest rates go down and banks' costs decrease, your costs decrease, too.
That's why it is crucial to pay attention to the big picture when you are looking to buy a new home or refinance. Interest rate patterns change over time. If the economy is slowing, then lower interest rates could be work in your favor. And if the economy is on the upswing, then interest rates are likely to rise, so you should consider purchasing or refinancing sooner rather than later.
How Do Government Bonds Affect Oklahoma City Mortgage Interest Rates?
People often overlook the inverse relationship between bonds and mortgage interest rates. When interest rates increase, bond prices decrease, and vice-versa.
- Treasury Note: Interest rates on long term loans, such as 15-year and 30-year fixed mortgages, are driven by 1-year, 5-year, and 10-year Treasury Note yields. Although the interest rates are fixed, Treasury Notes are auctioned off to the highest bidder. Depending on the demand at auction, the note could cost more or less than face value. However, at the end of the note's term, the U.S. Government pays back full face value to the bidder. In effect, bidders are loaning the bid amount to the U.S. Government. And in return, they get the interest rate and the full face value on the note.
- Fed Funds Rate: This is the rate that banks charge each other for overnight loans of reserve balances.
If you are considering purchasing a new home or refinancing your current home, be sure to pay close attention to the interest rates that affect home loans:
- Variable Interest Mortgage Rate: This rate is usually a few points above the prime rate, which is set by the Fed Funds rate. Therefore, it varies with the Fed Funds rate.
- Fixed Interest Mortgage Rate: This rate is fixed for the loan's term (either 15 or 30 years) and is very close to the 10 or 30 year Treasury Note yield.
While you may not think about mortgage interest rates often, they have a significant effect on your overall purchasing power. If you are vigilant about tracking interest rates as they fluctuate, you can make strategic financial moves and save a substantial amount of money.