Top 100 Metro Areas

We rank 4^th out of the Top 100 Metros in terms of Economic Security according to a study by the Urban Institute.  Tulsa was praised for its low unemployment, steady housing prices, average earnings that afford a median standard of living, and our ability to keep foreclosures to a minimum.

Oklahoma is recognized for its diverse economy.  Such things as government, universities, energy, and high tech firms have held up well in the Great Recession.  We didn’t fall victim to the vast swells of the housing boom and then bust, so mortgage prices today are remarkably affordable.  Especially when you couple that with the all time low mortgage loan rate of 3.93% (30 year fixed) just reported by Yahoo today!

Our region continues to rank high on multiple “top ten” lists – most affordable (Forbes), most recession-proof (Forbes), and best place to start a small business (Fortune Small Business).  We, at Simmons Homes, would agree that Tulsa is a “top ten” place to be a homeowner and we strive to make that an affordable luxury with amazing quality.

Source: Urban Institute analysis of LAUS, HPI, NUHC, OES, and LPS datahttp://datatools.metrotrends.org/charts/metrodata/rankMap_files/rankMap.cfm

Here’s a little history on interest rates. Do you know what a high mortgage rate would look like? December of 1980 the 30-year fixed mortgage rate was 14.79%. By January of 1990 it dropped to 9.67%. Over a 10-year period, rates inched down by about 5%. But by May 2000 the rates were only down to 8.52%, barely a 1% change in 10 years. So, when you hear reports that mortgage rates are at an historic low, this gives you more context.

Several years ago people were happy to purchase at a 6.5% interest rate, but now, with mortgages available from the high 4% to low 5% range there truly has never been a better time to purchase a home. Especially as rates slowly creep up again.

So what can you get for your money with lower interest rates?

Low rates mean lower payments: If you can afford a mortgage of $150,000 at a rate of 4.9% your monthly payments will be around $796 per month (not including taxes and insurance). A rate of 6.5% would cost about $948 per month. By purchasing a home while the rates are low, you free up over $150 per month.

Low interest rates mean you can get more house for your money: If you can afford a payment of about $790 per month (not including taxes and insurance) that means at a rate of 6.5% your mortgage would be approximately $125,000. Yet at a rate of 4.9% you can afford a home loan of almost $150,000 this gives you nearly $25,000 more house for the same payment of approximately $790 per month.

This difference in price could be the space you need and the options you want. Rolling $25,000 more into a mortgage could get you a lot more house for your money in a new home.

It’s important to understand rates so that you can make an informed decision about purchasing your new home. Many people keep waiting for the lowest rates. But how will you know when the rates hit bottom? Usually when standing at a higher point looking down.

By assessing your situation and looking for the right loan to fit your current lifestyle, you can look at the historic rates and see how much more home you will get for your money now verses just a few years ago.

Written By Kevin Swift:
Kevin Swift and Swift Home Loans is one of the top home loan originators in Oklahoma and the preferred lender for Simmons Homes. Learn more at www.swifthomeloans.net or fill out their online application here.  You can also call 918-528-6404 for your personal consultation.

*Rates and payments are approximate for the purposes of this article and do not include taxes and insurance.