Ohio Mortgage Rates
Compare Ohio mortgage rates and choose the best option for your needs.
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- 0% Down VA Loans for Veterans & Military
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- Rates have fallen, the time is now to move on your home purchase.
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- Minimum 620 credit score needed to prequalify
- 0% down USDA loan for rural homebuyers
- 97% of borrowers would recommend to friends or family
- Fed finally cuts rates!
- Down payments as low as 1%
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- As low as 3% down on a fixed-rate mortgage
Mortgage in Ohio: Top Lenders in 2024
Willing to buy a home in Ohio State? Utilizing a mortgage loan is typically the most convenient method, regardless of whether you're eyeing a residential estate or an apartment. Yet, it's crucial to recognize that the terms of home loans can differ significantly among various mortgage lenders (use our mortgage calculator to estimate your future expenses). In this guide, we'll delve into some of the leading lenders, assessing which ones merit your consideration.
OH Mortgage Lenders Comparison
All the lenders reviewed are trustworthy companies with reasonable rates and solid track records. To provide you with the most detailed information, we’ll compare them based on several key criteria – APR, the minimum down payment, minimal requirements, and so on.
Change Home Mortgage
Founded in 1994, Change Home Mortgage is a mortgage lender specializing in serving non-traditional, low-income borrowers, including immigrants and individuals employed on a temporary basis. This focus is underscored by its certification as a Community Development Financial Institution (CDFI). In addition to offering conventional mortgage options and various government-backed loans such as FHA, VA, and USDA loans, the broker promotes an alternative to the FHA plan - a conventional loan requiring only a 3% down payment. Change Home Mortgage also provides services for jumbo loans, reverse mortgages, and remortgaging. However, specific details regarding interest rates, fee schedules, and borrower eligibility criteria are not publicly disclosed.
| Pros: | Cons: |
|---|---|
| Perfect for low- to moderate-income borrowers. | Not licensed in Massachusetts, Missouri and New York. |
| A good choice of government-backed plans available. | Doesn't disclose the exact terms and requirements. |
| A close-to-nationwide coverage. |
Rocket Mortgage
Since its establishment in 1985, Rocket Mortgage has solidified its position as the most popular mortgage lender and overall successful lender in the United States. Formerly known as Quicken Loans, a trademark it still holds, Rocket Mortgage pioneered online centralized lending services nationwide. Offering rates that typically exceed the industry average, even under near-perfect conditions, the APR for a fixed-rate 30-year mortgage with Rocket Mortgage can reach 7.199%.
Rocket Mortgage provides a range of options including adjustable-rate mortgages, refinancing, and FHA- and VA-backed plans. Like all lenders, it maintains minimum requirements for borrowers, with a primary criterion being a credit score of no less than 620 (580 for FHA loans).
| Pros: | Cons: |
|---|---|
| Available nationwide. | Relatively high rates. |
| Abundance of third-party information. | Lack of USDA loans. |
PenFed Credit Union
Pentagon Federal Credit Union started in 1935 and was at first aimed exclusively at service members. Nowadays, however, everyone can apply.
The APR values offered by Pentagon Federal Credit Union are competitive, standing at 5.596% for a conventional 15-year mortgage, 6.078% for a 20-year mortgage, and 6.548% for a 30-year mortgage (based on a credit score of 700 – 739 and a 20% down payment). The minimum satisfactory credit score requirement is 650 for a conventional loan and 700 for a non-conforming jumbo loan. FHA options typically require a credit score of 620 or above.
| Pros: | Cons: |
|---|---|
| Doesn’t charge lender fees. | The lender does not support USDA-insured plans. |
| Allows calculating rates on the spot – without filling out any annoying forms. | The mortgage application process requires a preliminarily completed online form and a deposit of $5 into a savings account. |
| The lender provides nationwide coverage. |
Average Mortgage Rate in Ohio from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Ohio.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Ohio
| Criteria | Amount, $ |
|---|---|
| The median home value in Ohio | $198,776 |
| The income required to buy the median priced home in Ohio | $32,569 |
| The monthly mortgage payment required to buy the median priced home in Ohio | $754 |
| The median household income for Ohio | $64,297 |
Things to Consider When Choosing a Mortgage Lender
Taking out a mortgage loan implies making a significant commitment for a term of 15 to 30 years, necessitating careful consideration before finalizing an agreement with any lender. Several critical aspects should be assessed when choosing a lending entity.
Type of Lender
There are primarily two popular options: banks and online mortgage lenders. Banks often offer attractive rates but typically conduct strict credit checks, resulting in longer approval times and stringent eligibility criteria. In contrast, online lenders operate more swiftly and have less demanding requirements for homebuyers.
APR and Fees
Every loan comes with costs beyond the interest rate, including additional fees such as the origination fee, mortgage insurance fee, and closing costs. As of the present, the average mortgage rate for a fixed-rate 30-year loan in Ohio is 6.58%.
Terms and Conditions
Considerations include the minimum down payment requirement, which can range from 0% to 20% depending on factors such as loan type and borrower status (e.g., military, employed, self-employed). Another crucial factor is the loan term, representing its total duration, with common options being 15 and 30 years.
What Mortgage Lender is the Number One in Ohio?
Determining the premier mortgage lender in Ohio is challenging due to the extensive list of reputable lenders available. Selection largely depends on individual circumstances. Notably, Rocket Mortgage stands as one of the industry leaders, boasting a loan volume of $11.5 billion for the year 2021. To make an informed decision, consult our list of recommended lenders.
First-Time Homebuyer Programs in Ohio
Buying a home for the first time presents significant challenges. Fortunately, residents of Ohio have access to various governmental programs aimed at enhancing mortgage affordability.
- Federal Housing Administration (FHA) loan program. Under this initiative, buyers receive insurance from the federal government, with the insurance fee incorporated into the total loan cost. In exchange, homebuyers benefit from advantages such as a low interest rate and minimal credit requirements. Notably, FICO scores as low as 500 and debt-to-income ratios of just 50% are accepted.
- USDA loan program. Geared towards individuals residing in rural areas, this program allows participants to secure a mortgage loan with no down payment required. However, eligibility hinges on ensuring that annual income does not surpass 115% of the average income in the region.
- VA loan programs. These initiatives are insured by the Department of Veteran Affairs and cater to former military personnel or their spouses, providing them with accessible mortgage options.
Pre-Approval: What Does It Mean?
A preliminary approval serves as confirmation of a prospective homebuyer's credibility, signaling to home sellers that lenders are prepared to approve a mortgage loan for the buyer. To obtain pre-approval, individuals must furnish documentary evidence of their financial capacity. Typically, this includes earning statements, account statements, a W2 form, or alternative proof of income spanning at least 2 years. Additionally, completion of the Uniform Residential Loan Application form is necessary.