The news of plummeting interest rates has many Ohio individuals and families considering the purchase of a new home or refinancing their current property. This unpredictable and unexpected year has resulted in the lowest interest rates on record in the last 50 years. Will they stay that way? It’s hard to tell.
What We'll Cover
The worldwide pandemic has had a significant impact on the nation's economy. Although interest rates are low at this time, it’s hard to predict how long they will continue at this rate. While some analysts believe that mortgage rates will remain low through the end of the year due to a slower economic recovery than initially expected, other analysts believe that rates will slowly begin to climb as the year progresses.
Homebuyers across the country have been jumping at the opportunity to purchase or refinance their home with these attractive mortgage rates. In fact, many areas are exhibiting a shortage of property inventory available for purchase. In turn, home prices are increasing due to demand.
Currently, Ohio is following this national trend of increasing home prices and short supply of available homes. Central Ohio homes are showing a 16 percent increase in home prices in comparison with 2019 sales. Smaller towns and municipalities have seen prices rise by up to 42 percent.
The real estate market is on fire right now and for good reason. These incredibly low mortgage interest rates will ultimately save homebuyers significant amounts of money now and in the future. While you are shopping around for your perfect home, make certain you also shop around for the right mortgage. In order to secure the best interest rate available on the market, you must take the time to comparison shop and consider all of your available options. Compare prices and find the best mortgage lenders in Ohio by clicking here.
Ohio Mortgage Rates
In order to get the most accurate and up-to-date mortgage rates for you, the best option is always to request a quote from lenders in order to find the most competitive rates. Mortgage rates will fluctuate depending on the lender, your financial history and credit, as well as the current market rates. Even within the span of a day, you may encounter different mortgage rate estimations, depending on where you look.
Currently, Ohio mortgage rates on conventional loans are at record lows. A 30-year fixed-rate mortgage is approximately 3.02 percent and 2.52 percent for 15-year fixed mortgage rates for home buyers. Refinancing rates in Ohio are currently 3.12 percent for a 30-year fixed refinancing mortgage and 2.65 percent for a 15-year fixed refinancing mortgage.
OH FHA Loans
As a first-time homebuyer, you might be considering a government-backed and insured FHA loan. FHA's loans are appealing to individuals with lower credit scores and can require as little as 3.5 percent down. In order to qualify for the 3.5 percent down payment, you must have a minimum credit score of 580. If your score is in the 500-580 range you may still be eligible for an FHA loan, but will have to put up to 10 percent down on the purchase of your home.
FHA loans often offer competitive mortgage rates, although they tend to be a bit higher than conventional loans. If your credit is excellent, it may be to your benefit to apply for a conventional mortgage.
Keep in mind that home buyers are required to purchase FHA mortgage insurance with an FHA loan. This will add additional costs to your monthly financial responsibilities. In most instances, mortgage insurance must be maintained for about 11 years, the average length of time it takes to attain 20 percent equity in your home.
Although many lenders offer FHA loans, not all do and rates can vary significantly from one to another. Mortgage brokers are often a good choice for first-time homebuyers considering an FHA loan, as they can help guide you find the best fit for your particular circumstances.
Best Lenders and Brokers in Ohio
With so many mortgage companies and products currently on the market, browsing your available options can be overwhelming without some direction. We have compiled a list of some of the best lenders and mortgage brokers throughout the Ohio area to help you find mortgage solutions that fit your specific needs. Whether you are looking for a small hometown feel or a completely virtual experience, this list includes a number of options to appeal to your preferences.
First Ohio Home Finance, Inc
First Ohio Home Finance prides itself on helping its Ohio community with the knowledge and expertise of a hometown mortgage banker. They offer a variety of loan options including FHA, VA, USDA, HARP and conventional loans for Ohioans looking to purchase or refinance a home.
- Rated A+ by the Better Business Bureau
- Locations throughout Northern and Central Ohio
Central or Southern Ohio: (888) 818-1850
Northern Ohio: (800) 647-2720
With over eight million customers and a 160-year reputation in the banking community, PNC bank offers you peace of mind and professionalism. With a wide range of mortgage products, including FHA, VA, fixed-rate mortgages, adjustable rate mortgages, jumbo loans and other specialized programs, PNC can provide you a range of options for your purchase or refinancing. PNC offers a simple and quick digital pre-approval for home buyers currently in the process of searching for their next home.
- Local branches across Ohio
- Offers competitive rates and down payment programs
With branches throughout most of Ohio, this direct lender claims to offer over 400 mortgage products to meet your needs for purchasing, refinancing and renovations. With the ability to apply online and a clearly delineated streamlined process for your mortgage application, Prime Lending offers speedy loan solutions. Perks include E-close options, a down payment assistance program and float-down interest options to ensure you secure the lowest available interest rates.
- A + BBB rating
- Exceptional Zillow and Google customer reviews
- Locations throughout Ohio
Ohio Capital Mortgage
Ohio Capital Mortgage is a family-owned mortgage brokerage located in Columbus, Ohio servicing all of Ohio and helping individuals and families find the right mortgage loan for them. With a strong emphasis on building customer relationships and providing the best customer service possible, Ohio Capital Mortgage specializes in conventional, FHA, VA and USDA loan options for purchase and refinance.
2531 Tiller Lane, Suite B, Columbus, OH 43231
Equitable Mortgage Corporation
Offering simplified mortgage solutions as a direct lender and underwriter of their loans, Equitable Mortgage Corporation offers loan options for everyone. From mortgages for first-homebuyers to refinancing loans, their products include FHA, VA and USDA programs. With offices in Columbus, Ohio, Equitable Mortgage can assist Ohio homebuyers with localized knowledge and expertise to help them find the best loan options.
3530 Snouffer Road, Suite 100 Columbus, Ohio 43235
If you are looking into a VA loan, USAA offers some of the most competitive rates and experience in the VA loan arena. Although lacking in face-to-face options, USAA has convenient online and telephone processes to complete your VA mortgage application. Keep in mind USAA specializes mostly in VA loans and does not offer FHA or USDA loans. Conventional and VA loans are available for purchasing and refinancing.
- VA loan specialist
With their headquarters stationed in Columbus, Ohio and branches across the state, Huntington bank offers a number of mortgage solutions with competitive interest rates. Huntington Bank has purchasing and refinancing options, including conventional, FHA, VA, USDA and specialty loan options. Get real-time interest rates on their site for the particular loan you are interested in.
- Branches throughout Ohio
If you are looking for a full online experience, then look no further than Rocket Mortgage by Quicken Loans. This intuitive and easy-access online mortgage company allows you to complete your mortgage process completely online from start to finish. They offer competitive rates on mortgage options, including FHA, VA, USDA and conventional loans for purchasing and refinancing.
- Easy-to-access online tools and resources
- 100 percent online mortgage process — No in-person branches
Purchase or Refinance
Whether you are purchasing or refinancing your home in Ohio, there is a wide range of offerings and options to fit your needs through the various mortgage brokers and direct lenders throughout the area. With mortgage rates at an all-time low, the time is now to take action on your next home purchase or the refinancing of your current mortgage. If you are looking for extra ways to save money down the line, consider the benefits of shortening your mortgage length to a 15-year fixed mortgage, if it fits your budget.
Although lenders might be enforcing strict requirements for new mortgages during this time, if you are in a financially stable situation you should not let that deter you. Browse available options and requirements with a mortgage broker or direct lender in your area.
Purchasing or refinancing a home can be a stressful experience. Team up with one of the best lenders and brokers in Ohio for a stress-free and streamlined process. Take your time to contact various lenders and brokers to compare rates and benefits, so you can make the best-informed decision when applying for your mortgage.