Current Mortgage Rates in Ohio

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Contributor, Benzinga
February 18, 2022
Loan TypeRateAPR
30-year fixed 6.371% 6.418%
15-year fixed 5.925% 6.087%
7/1 ARM (adjustable rate) N/A N/A
5/1 ARM (adjustable rate) 6.24% 7.572%
Rates based on an average home price of $150,374 and a down payment of 20%.
See more mortgage rates on Zillow

Ohio offers an affordable cost of living and plenty of amenities. You’ll find no shortage of mortgage lenders if you want a purchase quote in the Buckeye State — and it’s important to shop around so you get the best mortgage rate for your needs.

Best Mortgage Lenders in Ohio

What is a Mortgage Rate?

A lender doesn’t let you borrow $100,000 or more without charging interest. You’ll be required to stick to a repayment schedule and pay interest. The interest you’re charged on a loan to buy a home is called a mortgage rate. 

What Factors Impact Your Mortgage Rate?

It’s important to know what factors determine the rate you’ll be quoted before you check current mortgage rates that Ohio lenders are charging. Lenders base their rate quotes on several very important factors:

  • Your income and debt levels: Lenders will ask you for information about your employment history and household income. You’ll also have to provide a list of all your current debts. There’s a reason for this. Your lender wants to calculate your debt-to-income (DTI) ratio, which is a number that represents how much money you make compared to how much you pay out each month. A lower DTI can often get you a lower interest rate.
  • Your credit history: Your lender will pull your credit score before it approves your loan. Aim for a high credit score — lenders will often give you a lower interest rate for a higher score.
  • Down payment amount: You’ll need to have at least 3 percent of the purchase price set aside before you start shopping for a home. You’ll be in a better position if you have 10 percent or more for your down payment. If you have 20%, you won’t have to pay private mortgage insurance (PMI), which is a monthly fee you pay the lender that protects the lender in case you default on your loan. Often, the amount you put down determines the interest rate you’ll be quoted.
  • Cash reserves: Lenders also want to see that once you’re in the house, you have money in an accessible account. Keep in mind that in addition to the down payment, you’ll pay closing costs. Closing costs average between 3%–6% of the home loan amount and include appraisal fees, title searches, taxes, deed-reporting fees and more.
  • Economic conditions: The Ohio economy has struggled to recover from the recession, but the housing market is still strong. You’ll see interest rates fluctuate due to the local and national economies.
  • Supply and demand: Regardless of what’s happening with the economy, lenders always take a look at how busy they are. If interested buyers are streaming in every day, they’re more likely to bump up their interest rate quotes. Once business drops and they need to generate income, they’ll reduce their rates to be more competitive.

What is a Mortgage Type?

There are a variety of mortgage options you can tap into — from mortgages for first time buyers to those specifically geared toward veterans or for home purchases in rural areas. Here are the various mortgage types to check into while you shop for the right lender for you.

  • Conventional loans are the most common type of mortgage. This type of loan is not backed by the federal government. In other words, let’s say you default on your loan —  the lender will be left with the damages.
  • FHA loans are insured by the Federal Housing Administration, which means that they’re backed by that government entity if you default on your loan. First time homebuyers and credit-challenged consumers often find that a government-backed mortgage like an FHA loan is a good match. 
  • USDA loans are backed by the U.S. Department of Agriculture — and they don’t just apply to rural locations. Some homes just outside big cities are also eligible.
  • VA loans are backed by the Veteran’s Administration, which means that qualifying active duty and former military members get partial government backing for their mortgages.

What is a Mortgage Term?

If you borrow money from a friend, your friend will likely want to know when you’re paying it back. Similarly, a mortgage term requires repayment, too — here are 3 major types.

  • 30-year fixed: A 30-year repayment term means that your monthly payments will be stretched over 3 full decades. This also means that your payment will be lower compared to other, shorter mortgage terms. You’ll also pay a higher interest rate if you have a longer mortgage term.
  • 15-year fixed: A 15-year fixed mortgage means higher monthly payments — in exchange, you’ll often get a break on your interest rate. A major benefit is that you’ll also pay the home off completely in only a decade and a half.
  • 5/1 ARM: Unlike fixed 30- and 15-year mortgages, an adjustable-rate mortgage doesn’t remain steady throughout the life of the loan. A 5/1 ARM locks you in at a low fixed rate for 5 years, but at the end of that time, your rate will adjust to the current interest rate. 

Current Mortgage Rates in Ohio

Ohio has some of the best mortgage companies, and you’ll find competitive rates among these companies. Lenders don’t charge the same interest rate 365 days a year — lenders respond to economic changes and the housing market, among other factors. We know you want the latest information possible, so we update rate information frequently for accuracy.

Loan TypeRateAPR
30-year fixed 6.371% 6.418%
15-year fixed 5.925% 6.087%
7/1 ARM (adjustable rate) N/A N/A
5/1 ARM (adjustable rate) 6.24% 7.572%
Rates based on an average home price of $150,374 and a down payment of 20%.
See more mortgage rates on Zillow

Calculating Interest in Ohio

When you’re quoted an interest rate on a home loan, that doesn’t mean you’ll pay that percentage of the home sale in total interest. Lenders use something called amortization to calculate the interest you pay. That means you’ll pay more in interest in the early years and more of your payment will go toward the principal at the end. Here are some examples of the monthly payment and total overall interest you’ll pay in some of the most popular Ohio markets.

CityAverage Home ValueLoan TermCurrent RateDownpayment (20%)Monthly PaymentTotal Interest Paid
Columbus $157,90030-year fixed6.125%$31,580$767.53$149,990.80
Cleveland $58,00030-year fixed0%$11,600$0.00-$46,400.00
Cincinnati $146,10030-year fixed6.125%$29,220$710.18$138,784.80
Toledo $71,80030-year fixed0%$14,360$0.00-$57,440.00
See more mortgage rates on Zillow

Lender Credit Score Minimums in Ohio

One of the first things a lender will want to know about you is your credit score. This number, issued by multiple credit bureaus, serves as a reflection of how well you’ve paid off debt in the past. If you’ve been late on payments or had accounts go to collections, your score will have taken a hit. The minimum credit score requirement varies from lender to lender. Here’s a sampling of the minimum credit scores required for approval at 5 of Ohio’s lenders.

LenderMinimum Credit Score Required
First California Mortgage640
USAA Bank620

Get the Best Mortgage Rates in Ohio

Ohio has always been an ideal location for raising a family. Its competitive interest rates and growing economy means that Ohio is more popular than ever. You can find a competitive interest rate whether you’re already a state resident or you’re relocating — just shop around.

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