Oklahoma Catches New Refi Wave

By Joe Taylor Jr.
Local Lender Columnist
Mar 19, 2007
While the great Oklahoma Land Rush of 1898 is more than a century behind us, the wide open spaces that once drew people to this Midwestern state may be partially responsible for its revitalized real estate market. While markets have pulled back slightly, the recent influx of new residents did create extra value that current Oklahoma homeowners can tap with refi deals.

Oklahoma still has plenty of room to develop, attracting real estate buyers looking for exceptional value. Meanwhile, the low cost of living and of doing business in larger cities such as Tulsa and Oklahoma City attracts new employers. Even in rural locations such as Lawton, land prices have risen in anticipation of significant population growth.

This real estate outlook should be welcome to Oklahoma property owners who want a refinance on their current mortgage. Mortgage rates remain historically low, making this an excellent time for a refi if your mortgage rate is higher than what's available on the current mortgage market.

Rising Home Values Offset Rising Interest Rates

Even homeowners who end up paying slightly higher interest rates after their refi can still benefit if they are converting ARM loans to more stable fixed rate mortgages. As trend watchers wait for new jobs and workers to arrive in some parts of Oklahoma, residents who suffered job losses and other temporary setbacks can tap rising home values and lower monthly payments by converting their equity to cash and consolidating debt. In some cases, the gain in a home's value can allow even a troubled borrower to refinance out of foreclosure.

Experts suggest that Oklahomans may not see the stratospheric increases in real estate values that homeowners experienced in places like Nevada or California. However, with the support of new employers and a growing tax base, these measured price increases can help long time residents adjust their monthly budgets.

Source
Tahlequah Daily Press: Housing Bubble Hasn't Burst Here, Yet

About the Author
Joe Taylor Jr. has covered business and finance news for Financial Times Television and CNBC. He coaches beginning mortgage brokers to provide better customer service and to understand creative financing opportunities.