Unlocking Homeownership: Tulsa Mortgage Expert Shares Insights on High Rates

As we bid farewell to 2024, mortgage rates have settled into a challenging range, typically falling between six and eight percent. It’s a world many prospective buyers never imagined.

On December 18th, the Federal Reserve made its third and final rate cut of the year, igniting hope for much-needed relief in the mortgage market. But here’s the kicker: mortgage rates don’t always respond directly to these cuts, leaving many scratching their heads.

To unravel the complexities of today’s mortgage landscape and provide invaluable insights, we turned to a local expert, Nicole Hopkins, a Mortgage Loan Originator with CMG Financial in Tulsa.

Q&A:

Q: What’s your top advice for those concerned about current mortgage rates?

A: “First off, I urge everyone to take a break from social media. It’s a hotbed of misinformation when it comes to mortgage rates and options. Instead, reach out to a mortgage lender for an honest conversation. Yes, rates are high—especially for millennials like myself. I remember snagging my first home at 4.1%, which feels like a dream now! However, not everyone shares the same experience; my parents recall rates soaring to 12%. It’s essential to chat with someone who can guide you through the mortgage maze and shed light on its history.”

Q: Are mortgage rates uniform for everyone?

A: “Not at all! Your mortgage rate is influenced by a multitude of factors. We’ll assess your credit score, financials, and debt-to-income ratio, plus how much you’re putting down. There’s a treasure trove of special loan programs out there—FHA loans, VA loans, and grants for first-time buyers. Your friend’s rate might not apply to you, so it’s crucial to work with a professional who can help you explore your unique options.”

Q: How can you snag the best mortgage rate available?

A: “As a mortgage lender, it might sound counterintuitive, but I encourage you to shop around! Rates vary because each lender has its quirks. While we all adhere to federal guidelines, local lenders might have their own promotions that could save you money. Many lenders in Tulsa are saying, ‘We know these rates are intimidating, but being in a home is a priority for your family.’ They’re offering creative solutions like covering refinance fees if you decide to refi within a certain time frame. Explore these options—there are ways to structure your mortgage that might work in your favor!”

Q: Do you anticipate rates staying high or dipping in the future?

A: “Predicting the market? That’s a tall order! During my time in wealth management, I learned that market conditions can change on a dime—daily, weekly, or monthly. Initially, we anticipated rates to drop by the end of 2024, but now it looks like it might stretch into 2025. It all hinges on market movements and economic shifts.”

Q: What do you wish callers would ask you?

A: “I wish they’d ask for an hour of my time instead of just inquiring about rates. As a mortgage lender, my ultimate goal is to help families secure a home they’ll love in the long run. I want to discuss their financial picture, budget, and how buying at a particular price point can affect their monthly cash flow. Financial literacy is a passion of mine; I come from a blue-collar background and understand how vital it is to grasp your finances. Unfortunately, many people just want to know, ‘What’s the rate?’ This focus on rates often overshadows the bigger financial picture.”

Q: What types of questions should homebuyers ask lenders?

A: “Ask about origination points, buy-downs, and any costs listed on your loan estimate. I often see clients who are thrilled with a rate, only to find out they’re incurring significant costs that come with it. Sometimes a buy-down makes sense, but not everyone understands these options. It’s crucial to do the math and see if it’s worth it in the long haul.”

Q: What mindset should buyers adopt while house hunting right now?

A: “Date the rate, but marry the house.”