How to Refinance in Oklahoma
Refinancing in Oklahoma is a tempting idea when rates are low and you could save money on your existing home mortgage. Oklahoma, like most states, has faced a downturn in home values over the past few years, and refinancing may be a challenge if you find that your home is now worth less than the amount of your current mortgage. However, a little research and communication with a mortgage specialist in Oklahoma will help you come to the best decision.
Other People Are Reading
Instructions
-
-
1
Determine the approximate value of your home. Websites such as Zillow.com and Trulia.com will be able to show you recent sale prices of homes in your neighborhood. By comparing your home to the ones that have sold recently, you will have no unexpected surprises during the refinance process. Once you have obtained an approximate value for your home, compare it to the amount of your existing mortgage, the loan-to-value (LTV) ratio. Many lenders in Oklahoma require 80 percent or less LTV, but it is possible that there are other options available if your LTV exceeds 80 percent.
-
2
Calculate the costs associated with refinancing to determine your "break even point." This is the length of time it will take to pay off what you will have paid in closing costs. Websites such as Bankrate.com and Calculators4mortgages.com will help you figure out approximate fees, closing costs and potential PMI associated with your refinance.
-
-
3
Find a reputable loan officer in the Oklahoma area. A Google search will assist in the process. The Personal Home Mortgage website can supply a list of options in your area. (See Resources 1) Speak with two or three loan officers to find who can offer the best terms and rates. The loan officers will provide you with a Good Faith Estimate which will outline all of the expected costs for your refinance.
-
4
Submit your application to the lender. You will be asked to attach copies of your most recent W2's, pay stubs and bank statements. The lender will run your credit and determine if you are accepted or declined for the new loan. If your application is accepted, your broker or loan officer will schedule an appraisal of your property and gather the necessary closing documents. At the closing, you will sign all of the new loan documents and discharge paperwork on the old mortgage.
-
1
References
Resources
- Photo Credit house image by Cora Reed from Fotolia.com
