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Ohio Real Estate Market 2022
Sales activity in the Ohio housing market has remained relatively flat over the past year, according to the Ohio Realtor. The average home value in Ohio is $196,213. While the number of homes sold in Ohio has remained stable, Ohio home values have increased 15.7% over the past year. At the same time, the number of homes sold increased by 2.7% and the number of homes for sale fell by 25.9%.
Ohio has an affordable real estate market. Columbus, the capital of Ohio, has become a popular destination for young professionals. Columbus is also home to The Ohio State University and its approximately 45,000 students. Columbus is one of the top 10 cities expected to see increased home sales in 2022.
How do I calculate my mortgage payment?
We recommend using an Ohio Mortgage Calculator. The formula to calculate by hand is quite complex. It looks like this:
Despite the rise in mortgage rates over the past few months, mortgage rates are still relatively low right now. To calculate your monthly mortgage payments in Ohio, you’ll need to enter your estimated mortgage amount, the term of your loan, and the rate you think you qualify for.
The term of your loan is the number of years you have to pay off your mortgage. Keep in mind that the higher your credit score, the more likely you are to get the most competitive rate available. The Mortgage Calculator for Ohio also has an option to enter your down payment amount. The more you invest, the less you will need to borrow and your monthly mortgage costs will be lower.
What other fees do I have to pay?
There are other monthly expenses you’ll need to consider, such as home insurance and property taxes. When using our Ohio Mortgage Calculator, remember that property taxes paid as a percentage of owner-occupied homes average 1.62%. Ohio has one of the highest property taxes in the country. Property taxes may change depending on your county.
Homeowners can also be part of a homeowners association (HOA) and must pay a monthly HOA fee in addition to their mortgage payments. HOA fees typically cover maintenance of common areas and often include services such as garbage removal. To enter these additional costs into the Ohio Mortgage Calculator above, simply click on “Additional Inputs” (under “Mortgage Type”).
You may also need to consider private mortgage insurance (PMI). Homeowners will have to pay PMI if they don’t put down at least a 20% down payment on their home. With all of these potential costs, it’s worth using our Ohio home loan calculator. Our tool will help you break down your costs so you can see what your monthly mortgage payments will look like under different scenarios. If you’re looking to refinance an existing mortgage, our Ohio mortgage calculator can also help you figure out your monthly payment — and you can check out our list of the best refinance lenders to start that process.
What to know before buying a house in Ohio
Before buying a home in Ohio, it’s important to make sure your finances are in order. You will need:
There are also specific issues you should be aware of when buying a home in Ohio. The state is mostly plains, but has five distinct regions: the Great Lakes Plains, the Till Plains, the Appalachian Plateau, the Bluegrass Region, and the Lake Erie Shoreline. Due to its proximity to major rivers and its location in the Midwest, Ohio is susceptible to flooding and tornadoes.
Despite the 15.7% increase in home values last year, homes in Ohio are also relatively cheaper than homes in New York. It’s important to know what you want, find the perfect location, and work with the right mortgage agents and lenders to find the best price and rates.
Learn more: Homebuyer’s Checklist
Tips for First Time Home Buyers in Ohio
Here are some important tips for first-time home buyers to help them navigate the process. There are several programs available to first-time home buyers through the Ohio Housing Finance Agency (OHFA). OHFA offers conventional mortgages specifically designed for low- to middle-income homebuyers.
OHFA allows buyers to choose a down payment of 2.5% or 5% of the purchase price of the home. Assistance can be applied to down payments, closing costs, or other pre-closing expenses. This aid is forgiven after seven years.
To qualify for the OHFA mortgage program, homebuyers will need to have a minimum credit score of 640, meet income and purchase price limits, and meet debt ratios for the loan type. .
Loans and programs for home ownership
Here are other homeownership programs to consider and explore:
- FHA loans are mortgages repaid by the Federal Housing Authority and require a 3.5% down payment.
- VA loans are for military service members and require a 0% down payment.
- USDA loans are government guaranteed loans for qualifying properties and require a 0% down payment.
- Fannie Mae and Freddie Mac are conventional loans that require a 3% down payment.
Decide on a home buying budget
Once you’ve decided on the best plan and shopped around with different lenders, it’s important to decide on a home buying budget. Many experts recommend that your monthly house payment (including additional costs) be no more than 30% of your monthly income.
It’s also important to maintain a good credit rating, so don’t apply for credit cards or other loans right before your house hunt. Credit report inquiries will impact your credit score. You should also have enough money saved for closing costs. Other costs such as loan fees, inspections and processing fees are generally not covered by the loan.
Read more: Best mortgage lenders for first-time home buyers
Still have questions ?
Here are some other questions we answered: