Overview of Ohio Mortgages
Whether residents spend their free time hiking the Appalachians, out on the water of Lake Erie or visiting one of Ohio’s museums or amusement parks, it’s clear that the state has a lot to offer those who call it home. Buckeye State mortgage rates have historically fluctuated just slightly above and below the national average rates. Ohio counties’ conforming loan and FHA limits are nearly entirely at the standard limits.
National Mortgage Rates
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Ohio Mortgage Rates Quick Facts
Historical Mortgage Rates in Ohio
From Cleveland’s Rock and Roll Hall of Fame to Cincinnati’s baseball roots and the Columbus Museum of Art, Ohio is a hub for cultural, artistic and outdoor fun. There are plenty of unique cities to choose from for a home base. Additionally, Ohio is the seventh most populous state in the country.
Ohio Historic Mortgage Rates
|Year||Ohio Rate||U.S. Rate|
Ohio Mortgages Overview
Ohio homes are priced well below the rest of the nation, with average sale price of $144,750. This is considerably cheaper than the nation’s average of $236,450, according to Zillow, making the state one of the more affordable places to settle down.
Ohio Mortgage Rates
|Percentage of Homes||92.50%|
|Average Property Value||$82,078.55|
|Percentage of Homes||5.80%|
|Average Property Value||$96,328.60|
|Percentage of Homes||1.20%|
|Average Property Value||$106,804.92|
|Percentage of Homes||0.60%|
|Average Property Value||$67,649.09|
The conforming limits for Ohio counties are all at the standard $417,000. Again this reflects the overall affordability of real estate in the state. The standard FHA limit is $271,050 in most Ohio counties. However 10 counties (out of a total 88) have an FHA limit of $316,250. These counties are Delaware, Fairfield, Franklin, Hocking, Licking, Madison, Morrow, Perry, Pickaway and Union.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
Ohio state law requires home sellers to provide buyers with a disclosure form listing details on the property. This list should include information on wiring and electrical, water damage and any environmental hazards. The purpose of these disclosures is to protect buyers, but a home inspection is always a smart idea to help you avoid uncovering big problems down the line.
30-Year Fixed Mortgage Rates in Ohio
If you are looking for a home loan in Ohio, more likely than not you will end up with a 30-year fixed-rate mortgage. This reliable home loan option is especially popular for buyers who plan to stay in their home for a long time, as you have three decades to pay off the loan. Over that time, the interest rate remains the same which makes it easier to budget those monthly payments.
The average Ohio mortgage rate for fixed-rate 30-year mortgages is 3.75%.
Ohio Jumbo Loan Rates
Ohio county conforming loan limits are all $417,000. That means that if you take out a home loan anywhere in the state that is equal to or less than $417,000, you will have what is considered a conforming loan. This means that the loan is eligible for normal interest rates and can be resold on the secondary mortgage market.
On the flip side, if you decide to take out a loan that exceeds $417,000 in order to pay for your new Ohio house, you will have a “jumbo loan.” Jumbo loans are subject to higher interest rates. So you may want to reconsider whether it’s a better idea for you to find a home that fits more comfortably within your budget.
The average jumbo loan rate in Ohio is 3.93%.
Ohio ARM Loan Rates
An adjustable-rate mortgage might be a good idea if you are not planning to stay in your new home long term. With an ARM, you will be given a lower interest rate for a period of one, three, five, seven or 10 years, depending on the loan’s terms. Once that period has ended, the interest rate can increase (or decrease). It is worth noting that the interest rate is capped at a certain level in the terms, which means you do know what you are getting into when you choose an ARM.
Even if you think you will be out of the home long before the introductory period ends, it is still a smart idea to check what the interest rate cap is and to see if it something that you would be able to pay if your plans were to change.
The average rate for an ARM in Ohio is 3.06%.
Ohio Mortgage Resources
Buckeye buyers have a couple assistance options to help fund their home purchase.
The Ohio Housing Finance Agency offers homeowner incentives for first-time buyers. The down payment assistance program applies 2.5% or 5% of the home’s purchase price toward the down payment, closing costs or other pre-closing costs. This down payment assistance is forgiven after seven years, unless you sell or refinance your home within that time period.
A Mortgage Tax Credit offers additional income for first-time homebuyers by cutting down on the amount of federal income tax liability that the borrower owes. With this credit, part of the mortgage interest is a tax credit up to $2,000.
|Resource||Problem or Issue||Who Qualifies||Website|
|Ohio Housing Finance Agency||Down payment assistance and mortgage tax credit.||First-time homebuyers who meet income, credit and other requirements.||http://myohiohome.org/|
|USDA Rural Development - Single family loans||Offers payment assistance to increase an applicant’s repayment ability.||Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; Not be suspended or debarred from participation in federal programs.||http://www.rd.usda.gov/programs-services/all-programs/single-family-housing-programs|
|Home Affordable Refinance Program||Refinancing.||Single family homes and condos that fit within lending loan limits.||http://www.harp.gov/|
The United States Department of Agriculture Rural Development offers a program in rural Ohio communities which helps residents secure housing. If you qualify, loans and grants are available to help you purchase a new home or repair your current home.
Ohio Mortgage Taxes
Ohio charges taxes on real estate transfers. The taxes in Ohio are 0.1%, and there is an additional local option of 0.3%. Ohio sellers typically pay this fee.
If you are an Ohio homeowner who also makes itemized deductions on your federal taxes, you should be aware that you can deduct the mortgage interest that you pay from your taxable income. Ohio is one of 10 states that does not allow itemized deductions so unfortunately you cannot make this deduction on your state income taxes as well.
Ohio Mortgage Refinance
Buckeye homeowners who want to refinance can look into the state Home Affordable Refinance Program. The Ohio HARP program accepts single family homes and condos. Qualifying residents have access to interest and principal payment reductions and low closing costs.
See Mortgage Rates in These Other States
Best Places To Get A Mortgage
SmartAsset’s interactive mortgage map highlights the best counties in the country (and in each state) for securing a mortgage. Hover over counties and states to see data points for each region, or use the map’s tabs to view the top counties for each of the factors driving our analysis.
Methodology For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.
To calculate the overall borrowing costs, we looked at the expected costs over the first five years of a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on the annual principal and interest payments for a $200,000 loan in that location, using average mortgage rates in each county.
Finally, we ranked locations based on these four factors, and then averaged those rankings, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.
Sources: Mortgage Bankers Association, US Census Bureau 2015 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset