Oklahoma Mortgage Calculator

Best mortgage lenders in Oklahoma

The most popular mortgage lenders in Oklahoma operate nationwide. These include such recognizable names as Change Home Mortgage, Rocket Mortgage, AmeriSave. Several lesser known but trustworthy options include Oklahoma-based Citywide Mortgage, First American Mortgage Inc.

How to calculate mortgage payment in Oklahoma

Utilize our quick and user-friendly mortgage calculator OK to assess your forthcoming monthly costs. You'll find comprehensive step-by-step instructions provided below for your convenience.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Oklahoma for thorough planning of your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in Oklahoma parameters.

Let's break down the key components:

Firstly, there's the home price – this represents the amount you intend to invest in your future property. The down payment is the upfront portion of this price. To avoid costly insurance, it's crucial to provide at least a 20% down payment, especially for a conventional loan. The remaining amount constitutes the principal, which typically comprises 80% of the home price when a 20% down payment is made.

Next, the loan term signifies the period for complete mortgage repayment through scheduled payments. Fixed-rate conforming loans can extend up to 30 years in most cases, while adjustable-rate options typically have shorter terms.

Now, let's discuss the interest rate. This is a fixed or variable fraction of the principal that you must pay throughout the loan's duration. It's important to note that you are actually charged an annual percentage rate (APR), commonly abbreviated as APR, which is not exactly the same as the interest rate. Although the interest rate forms the majority of the APR value, the latter also encompasses various fees such as origination fees, closing costs, insurance payments, and more.

For more precise assessment, the interest rate used for these calculations is based on the current mortgage rates in Oklahoma, given a $400,000 home price and a 10% down payment.

Median property taxes in Oklahoma counties

The property tax is another important thing to consider when selecting your future house. Many lenders insist on setting up a mortgage escrow account to ensure the borrower’s keeping up with the tax and insurance costs.

Source: American Communities Survey 2016, U.S. Census

Oklahoma Housing Market 2024

The past year has seen a steep increase in the market value of housing in Oklahoma. This continues a longstanding trend amplified by the COVID pandemic. Nevertheless, the pace of growth has diminished compared to the previous year, while both purchase and refinance rates have been on the increase for some time and are expected to rise further in the near future.

How do I calculate my mortgage payment?

The most convenient way to accomplish this is by utilizing our calculator. It operates using a simple formula, which you can also employ manually to calculate the payment amount:

M = P*i(1 + i)^n / (1 + i)^n – 1

M – estimated monthly mortgage payment;

P – principal;

I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);

N – the loan term expressed in months (in other words, the overall number of monthly payments)

Imagine you are applying for a 15-year mortgage loan with a fixed 6.99% APR (which is .0699 as a unit fraction). The house costs $500k, with 10% ($50,000) to be paid down. The principal amount (P) will be equal to 90% of the initial home cost ($500,000 – $50,000 = $450,000).

I = .0699 % / 12 = .005825%.

Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.

M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.

So, you are going to pay about $4042 a month.

It is important to note that the calculated M value is approximate, as no extra fees are taken into account.

Tips for first-time home buyers in Oklahoma

To begin, there are several federal agencies (USDA, FHA, and VA) that provide loan guarantees to eligible borrowers, offering a range of options for first-time homebuyers to fit their budget.

In addition to these government-backed programs, it's worth exploring the opportunities offered by UHC (Oklahoma Housing Corporation) specifically designed for residents of Oklahoma. First-time homebuyers who qualify for an FHA loan with a minimum FICO score of 660 can apply for the FirstHome program. This program offers assistance with down payments and closing costs, covering up to 6% of the loan amount. It's important to note that this assistance is provided in the form of a 30-year-fixed-rate second loan only. If you don't meet the qualifications for the FirstHome program, there's an alternative called the Oklahoma Housing Score Loan, which provides assistance of up to 4%, with a minimum satisfactory credit score of 620.

Here are some valuable tips for first-time buyers:

1. Obtain pre-approval in advance. This enhances your credibility in the eyes of home sellers. It is highly recommended to secure pre-approval letters from not just one, but at least two or three different lenders.
2. Compare mortgage rates from different lenders. Consider at least three lenders for a comprehensive assessment.
3. Conduct preliminary financial calculations based on the amount you've been pre-approved for to effectively plan your future expenses.
4. Start saving for a down payment as early and as diligently as possible. A larger down payment reduces the principal amount, potentially leading to lower overall expenses. Therefore, it's important to begin saving in advance.
5. If you are eligible for a VA loan, prioritize this option.
6. Explore government-backed plans and local assistance programs, as they may present enticing opportunities and financial support.
7. If feasible, aim to pay off any existing debts to improve your overall financial situation.