Ohio Mortgage Calculator

Best mortgage lenders in Ohio

The most popular mortgage lenders in Ohio operate nationwide. These include such recognizable names as Rocket Mortgage, Pentagon Federal Credit Union, Change Home Mortgage. Several lesser known but trustworthy options include Ohio-based Ohio Capital Mortgage, First Ohio Home Finance, Inc.

How to calculate mortgage payment in Ohio

Use our mortgage calculator OH to evaluate your future monthly expenses. A detailed step-by-step instruction follows below.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Ohio for thorough planning of your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in Ohio parameters.

Let's examine the key elements. First and foremost, we have the home price – this represents the amount you plan to spend on your future property. The down payment is the upfront portion of this price. To avoid costly insurance, it's essential to provide at least a 20% down payment, especially in the case of a conventional loan. The remaining amount constitutes the principal, typically 80% of the home price with a 20% down payment.

Moving on, the loan term signifies the period for full mortgage repayment through scheduled payments. Fixed-rate conforming loans can last up to 30 years in most cases, while adjustable-rate options typically have shorter terms.

Now, let's discuss the interest rate. This is a fixed or variable fraction of the principal that you must pay throughout the loan's duration. It's worth mentioning that you are actually charged an annual percentage rate (APR), commonly abbreviated as APR, which is not precisely the same as the interest rate. Although the interest rate forms the bulk of the APR value, the latter also includes various fees like origination fees, closing costs, insurance payments, and more.

For a more precise assessment, the interest rate used in these calculations is based on the current mortgage rates in Ohio, assuming a $400,000 home price and a 10% down payment.

Median property taxes in Ohio counties

The property tax is another important thing to consider when selecting your future house. Many lenders insist on setting up a mortgage escrow account to ensure the borrower’s keeping up with the tax and insurance costs.

Source: American Communities Survey 2016, U.S. Census

Ohio Housing Market 2024

Over the past year, there has been a significant surge in the housing market's value in Ohio. This trend is part of an ongoing pattern that has been accentuated by the impact of the COVID-19 pandemic. However, it's important to note that the rate of growth has slowed compared to the previous year. Additionally, both purchase and refinance rates have been steadily rising for some time and are anticipated to continue increasing in the near future.

How do I calculate my mortgage payment?

The most convenient way to do this is to make use of our calculator. It's powered by a simple formula, which you can also use to calculate the amount to be paid by hand:

M = P*i(1 + i)^n / (1 + i)^n – 1

M – estimated monthly mortgage payment;

P – principal;

I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);

N – the loan term expressed in months (in other words, the overall number of monthly payments)

Imagine you are applying for a 15-year mortgage loan with a fixed 6.99% APR (which is .0699 as a unit fraction). The house costs $500k, with 10% ($50,000) to be paid down. The principal amount (P) will be equal to 90% of the initial home cost ($500,000 – $50,000 = $450,000).

I = .0699 % / 12 = .005825%.

Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.

M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.

So, you are going to pay about $4042 a month.

It is important to note that the calculated M value is approximate, as no extra fees are taken into account.

Tips for first-time home buyers in Ohio

To start, several federal agencies, including USDA, FHA, and VA, offer loan guarantees to qualified borrowers, providing numerous options for first-time homebuyers that align with their budgets.

In addition to these government-backed programs, it's worthwhile to explore opportunities provided by UHC (Ohio Housing Corporation) specifically tailored for residents of Ohio. First-time homebuyers who meet the criteria for an FHA loan with a minimum FICO score of 660 can apply for the FirstHome program. This program offers assistance with down payments and closing costs, covering up to 6% of the loan amount. It's important to note that this assistance is in the form of a 30-year-fixed-rate second loan. For those who don't qualify for the FirstHome program, there's an alternative known as the Ohio Housing Score Loan, which provides assistance of up to 4% with a minimum satisfactory credit score of 620.

Here are some practical tips for first-time buyers:

1. Obtain pre-approval in advance. This boosts your credibility in the eyes of home sellers. It's highly recommended to secure pre-approval letters from multiple lenders, ideally two or three.
2. Compare mortgage rates from different lenders. Consider at least three lenders to make an informed choice.
3. Perform preliminary financial calculations based on the amount you've been pre-approved for to effectively plan your future expenses.
4. Begin saving for a down payment as early and as diligently as possible. A larger down payment reduces the principal amount, potentially leading to lower overall expenses. Starting to save well in advance is crucial.
5. If you are eligible for a VA loan, give this option top priority.
6. Explore government-backed plans and local assistance programs, as they may present enticing opportunities and financial support.
7. If feasible, aim to pay off any existing debts to improve your overall financial situation.