The Best Ways To Get The Lowest Oklahoma Mortgage Rate

By Author: Melville Holl
Total Articles: 1
Comment this article

One of the most crucial parts in choosing an Oklahoma Home Mortgage loan is finding the best interest rate. The difference in a percent lower or higher in most cases can be measured in tens of thousands of dollars over the life of the loan. Keep in mind that even just a quarter-point difference can equate to thousands less in interest payments. While there are numerous things to consider when trying to find the best Oklahoma home loan, make sure you take a look at the following suggestions to get the lowest interest rate.

Put a Larger Down Payment or Have more Equity. There are home loans that will allow you to pay little or no money down, but you should be aware that these programs usually end up with higher interest rates. Oklahoma Mortgage Lenders offer you a certain interest rate based on how risky your loan is to them. Loans that start off with a sizeable down payment or lower loan to value are less risky because a good chunk of the loan has already been repaid. This gives your lender more security and peace of mind about getting the rest of the funds back. If you can afford to do so, make sure you put ...
... a down payment that is at least 20% or more of the total value of the loan. This will no only significantly lower the interest rate you receive, but also make it to be the new loan does not require Principle Mortgage Insurance usually called PMI. PMI is monthly insurance that covers the lender in case you default on your loan.

Reduce you Consumer Debt. At the very least, pay off as much of your debt as possible or refinance that debt to reduce the monthly required payments. Oklahoma Mortgage Lenders will use a formula called the debt-to-income ratio to help calculate if and how much of a mortgage payment a borrower can afford. The more debt you have, the higher your ratio will be. Too much monthly debt may actually disqualify you from obtaing a Oklahoma home loan, even if your credit score is really good and you have a substantial down payment. Oklahoma Mortgage Lenders want to be sure you have enough income to continue to pay all of your current monthly financial obligations as well as take on a new, large mortgage debt. The lower your monthly debt obligations are the less you will be viewed as a high financial risk and will be eligible for lower better interest rates.

Be Educated on the Different Oklahoma Mortgage Types. Sometimes inexperienced borrowers may be perplexed by the different rates & terms offered on different loan programs. Oklahoma Mortgage Rates on adjustable rate mortgages (ARMs) will always be lower at the beginning of the loan term, but will usually jump up significantly after the initial 2 or 3 year period. Fixed rate mortgage loans will have higher interest rates but the rate remains unchanged during the full loan term. Keep this in mind as you search for the best mortgage rate. Make sure you learn all the differences between the loan programs before being lured in by a too good to be true rate. Also make sure you know the difference between the two most comment loan types FHA & Conventional or Conforming home loans.

Always ask about the cost associated with each Oklahoma Mortgage Lender. Remember that some lenders might offer the same rate as another, but sometimes one will charge more than the other for that same rate. Most banks won't charge as much in closing costs, but will usually give you a retail rate that ends up costing you thousands more in the long run. Many wholesale Oklahoma mortgage lenders will charge points, or a percentage of the total loan amount. The more points you pay, the better your interest rate. The opposite is also true. Realize that the lowest quoted rate mortgage may not be the best total loan option for you.

Go with a Reputable Local Oklahoma Mortgage Lender. One of the best ways to secure a great interest rate on your next mortgage loan is by using a local lender in your state. Shopping around online and using business in other states has becoming the norm for many different items, but a mortgage should not be one of them. Most online non local lenders have the anaminity of the internet and usually charge large up front application fees along with using bait and switch tactics. Going with a local lender assures that the Lenders is able to deliver what they offered initially and prevent any surprises at the closing table. Before choosing a local lender make sure to check out there reviews from previous customers on sites like the BBB or Google maps and determine there ability to deliver and previous customer satisfaction. Make Oklahoma Mortgage lenders compete for your business and provide you with their best loan and rate options. Do not be afraid to tell lenders what you were offered by other mortgage companies.

Getting the best possible interest rate on a Mortgage in Oklahoma involves many factors including your credit history and your current financial situation. But there are several things borrowers can do in there Oklahoma Home Loan search process to find the lowest best rate for their situation. Just like any big step in your life before you start, do your homework and learn what lenders want in return for a good interest rate.

Jason Smith is a Tulsa Mortgage Loan Officer with ZFG Mortgage. He specializes in helping clients getting the right Oklahoma Mortgage. With over 10 years of experience, Jason understands the Oklahoma Real Estate & Oklahoma Home Loan Industry.


 
ZFG Mortgage Oklahoma is Oklahoma's premier source for a: Mortgage in Oklahoma, Tulsa home loans, OK Mortgage, OK Mortgage FHA and refinance, mortgage in Tulsa Oklahoma. For more informations please visit our website.