Oklahoma Home Mortgage Tips: 100% Home Mortgage with No Money Down
Soaring energy prices boost the job market in Oklahoma, but the housing market remains modest. The energy market plays a major role in job creation because Oklahoma is one of the largest natural gas-producing states in the country. However, fourth-quarter median home prices in Oklahoma City only reached $121,700, well below the $213,000 national level.
The Office of Federal Housing Enterprise Oversight says the price of homes in Oklahoma City rose by just over seven-and-a-half percent from the end of 2004 to the end of 2005. In Tulsa the price increased by just under four-and-three-quarters percent. While, nationwide, home prices rose by nearly 13 percent during the same period. Housing industry analysts say the lack of quickly rising prices in Oklahoma means the housing market should be safe from quick depreciation seen in areas where the high prices can't be supported.
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Some economists feel that housing markets tied to the energy sector like Oklahoma City, which is home to such Fortune 500 companies as Devon Energy Corp. and Kerr-McGee Corp., could kick start into an upswing if fuel and energy prices remain high. "It's a potential upside surprise for the future," says Ian Morris, an HSBC economist in New York. So, now may be the best time for home buying in the Mid-West or for financing a second home in Oklahoma and other parts of the affordable regions.
With interest rates being low, it's best to try to get a fixed interest rate loan rather than an adjustable rate loan or an interest only loan, so risks remain low and payments remain the same through the life of the loan. With these low prices, chances are you won't have to worry about a jumbo loan, but if you don't have at least $25,000 for the down payment you will have to pay private mortgage insurance (PMI). PMI only benefits the lender by protecting them in case you default. You don't get any benefit from it.
You can get around PMI with a 100% 1st mortgage, also known as a no money down home loan, or 80-20 home mortgage because it typically entails a first mortgage loan that covers 80% of the purchase price with a piggyback second mortgage covering the 20% down payment balance. You'll then enjoy the benefit of up to a 100% tax deduction on the interest you pay on your mortgage loans.