Compare Current Mortgage Rates in Oklahoma

Mortgage rates in Oklahoma depend on several factors, including the type of home loan you get, your credit score, and current market conditions. Your rate can affect your monthly mortgage payment and how much you pay in interest over the life of the loan. The lower your rate is, the less you’ll need to pay each month — and in total.

A mortgage interest rate is essentially the cost of borrowing money from a lender. If you’re like most homebuyers and plan to get a loan, knowing your rate can help you determine whether you can afford it and how much it will cost you.

Here’s how mortgage rates are determined in Oklahoma, how you can get the best rate and your financing options.

Before taking out a home loan, it’s important to understand the key factors that affect Oklahoma mortgage rates. Here’s what lenders typically consider when setting their rates:

• Borrower’s credit score: Your credit score is a three-digit number that helps lenders determine how risky it is to lend you money. With good credit — 670 or higher — you could get a lower interest rate.
• Loan amount: If you take out a large loan to finance an expensive home, you could get a higher interest rate.
• Down payment amount: A large down payment can reduce how much you need to borrow. It can also lower your monthly payment and interest rate.
• Home loan type: Your rate can also depend on the type of mortgage you get. Government-backed loans — like FHA loans — may come with a lower interest rate than non-government-backed loans.
• Loan term: Home loans come with different repayment terms, such as 10-, 15-, or 30-year terms. Loans with a longer term might come with higher rates.
• Rate type: In Oklahoma, you can get a mortgage with either an adjustable or fixed rate. Adjustable-rate mortgages (ARMs) often come with a lower initial interest rate that increases over time. Fixed-rate loans remain the same throughout the life of the loan.
• Location: Your property’s county can also affect your interest rate. Bigger or more heavily populated areas, like Oklahoma County or Tulsa County, often have more expensive homes, increased demand, and higher interest rates.

The Federal Reserve’s monetary policies may also affect your Oklahoma mortgage rate. This is because the Fed sets the federal funds rate, which lenders use to determine their interest rates. When the federal funds rate is low, mortgage rates tend to drop. The current effective federal funds rate is 5.33%.

Last but not least, inflation and current market conditions — like supply and demand — can also affect your mortgage interest rate.

Oklahoma has several programs to help first-time homebuyers purchase a home, including:

• Oklahoma Housing Finance Agency (OHFA) GOLD loan program: This program offers 3.5% down payment assistance on conventional and government-backed loans. This money is tax-exempt in most cases. You must be a first-time buyer unless you’re purchasing property in a “targeted” area — locations with low homeownership rates or minimal economic growth. The maximum purchase price is $349,525 in non-targeted areas and $427,198 in targeted areas. Household income limits apply.
• REI Down Payment Assistance: First-time borrowers may receive down payment or closing cost assistance when purchasing a home in Oklahoma. Possible types of assistance include gift money, a forgivable second mortgage loan, or a second loan with a 10-year term. You must have a maximum debt-to-income ratio (DTI) of 45% and a 640 credit score or above to qualify.
• OHFA DREAM loan program: This program helps new homeowners with up to 3.5% of their down payment or closing costs. Annual income limits and home purchase price limits depend on the home loan type.
• Special interest rate programs: Whether you’re a first-time buyer or not, you could qualify for a special reduced interest rate if you’re a law enforcement officer, firefighter, teacher, state employee, or EMT. The property must be located in Oklahoma and be your primary residence. You'll also need a credit score of 640 or above.

Here are some ways to get the best Oklahoma mortgage rate:

• Start building your credit: Having good credit can help you get the lowest interest rate possible. Check your credit online or with the three major credit bureaus to see which areas need work — if any. You can build credit by making on-time payments, paying down debt, disputing errors on your credit reports, and improving your income.
• Calculate your home purchase budget: Even if you qualify for a larger loan, you should still consider whether you can afford it. Use a mortgage calculator to figure out your monthly payments and the total cost of your loan before applying.
• Save a large down payment: The more money you can put down, the smaller the loan you’ll need to get. This can lower your interest rate and reduce your monthly payments.
• Research your loan options: Compare mortgage loans, repayment terms, and interest rate types. This can help you get the lowest rate possible.
• Shop for lenders: Use an online comparison tool to compare different mortgage lenders and find the best one for you. Consider each lender’s fees, typical interest rates, and home loan types.
• Get pre-approved: Pre-approval gives you a better idea of what you could qualify for and at what rates. If you get pre-approved and don’t like your options, you may need to improve your credit score or income or save more for a down payment before applying for a loan.
• Consider using discount points: You can purchase discount points to get a lower interest rate.

In Oklahoma, there are several types of mortgage loans available. Each loan type has its eligibility requirements, terms, and other key characteristics. Mortgage rates in Oklahoma also depend on the type of loan you get.

Here are the most common types of home loans in the state:

Conventional

• Typical eligibility criteria: 620 minimum credit score, 43% maximum DTI, 3% to 5% minimum down payment
• Key characteristics: Fixed or variable interest rate, maximum loan amount of $726,200 (in most counties) and  $1,089,300 (in high-cost counties), 15- to 30-year repayment terms, PMI required if less than 20% down

Jumbo

• Typical eligibility criteria: Typically have higher credit score or down payment requirements than conventional loans, 43% maximum DTI
• Key characteristics: Fixed or variable interest rate, 15- to 30-year repayment terms, higher loan limits ideal for more expensive homes

USDA

• Typical eligibility criteria: No minimum down payment, no minimum credit score, the property must be located in a “rural” city or town, income limits may apply
• Key characteristics: Fixed interest rate, 15- to 30-year repayment terms, available through the USDA, geared toward first-time borrowers or buyers with limited savings

FHA

• Typical eligibility criteria: 500 minimum credit score, a minimum down payment of 3.5% (depending on credit), loan limits depending on the county, may require mortgage insurance premium (MIP)
• Key characteristics: Fixed or variable interest rates, 15- to 30-year repayment terms, primarily geared toward first-time buyers, regulated by the FHA

VA

• Typical eligibility criteria: No minimum down payment requirement, credit score requirements vary, no PMI required, must meet military service eligibility requirements
• Key characteristics: Fixed or variable interest rate, 15- to 30-year repayment terms, lower closing costs, backed by the VA