Ohio Mortgage Interest Rates and Mortgage Refinance Rates
As the housing market hits an all-time low in prices, the rush to buy a hose at an affordable price has begun, but what are the current mortgage rates in Ohio? To be sure you get the best payment possible, you will want to be well aware of the different mortgage options in Ohio.
Ohio Mortgage Interest Rates: FHA Loans
FHA loans are loans that are given out by the United States government through the Federal Housing Administration. These loans are most popular with first time home buyers. Usually, a first time home buyer will get the best rates with these loans. FHA loans have dropped to about 6% in recent days. Make sure you look carefully at your loan, though. FHA loans have seen a bit of an increase lately. In one week, 30 year fixed FHA loans jumped from 5.7% to 6.06%. Right now, this may not seem like it will make a huge difference in your payment, but you will pay a lot more for your house 30 years down the road. Overall, FHA loans are great loans for first time home buyers, just make sure you check with other lending institutions to be sure you are getting the best rate possible.
Ohio Mortgage Interest Rates: Traditional Mortgage
Traditional mortgage rates are hitting an all time low. Many mortgages are nearing the 5% mark. While this is a great option for buyers, be sure the hidden fees do not make the price more unmanageable than you thought it was going to be. While the cost of the mortgage may be low, the closing costs can still empty your pockets very quickly. Watch out for all the different fees that can be charged in all the closing costs. Look over your good faith estimate carefully for high cost in mortgage lender fees, broker fees, contract administration fees, underwriting and processing. Also, make sure that all the fees were included on the good faith estimate. It is always possible that a mortgage company, in order to make their mortgage look better, left important details off of their good faith estimate. Make sure the lawyer’s fees are not only present, but of an average amount. A lawyers fee of $60 for a closing would never happen, so be sure you are not caught by a mortgage company putting low estimates on necessary closing costs. Good faith estimates are only estimates. A mortgage company can put a low price on an estimate to make their company look great. But, when it comes time for you to pay all the fees necessary for closing, you can be surprised at how much more you will owe. If you receive a good faith estimate that seems too good to be true, make sure you check that document with some other mortgage companies to be sure that the amounts quoted to you are possible.
Also, a mortgage that has a low payment is not always necessarily the best mortgage for you. Make sure you look to see how much of the mortgage is going toward the principal of the loan, and not just to the interest. You will pay hundreds more, in the long run, if your payments are only going toward the interest.
Ohio Mortgage Interest Rates: Mortgage APR Rates
Make sure you are looking at the APR rates in your loans. An APR is a yearly average of how much you are paying for the credit in your loan. Right now, Ohio’s average APR is between 5.8% and 6.4%. These are great rates, but beware of anything that would seem to be out of the average rates in your area. Your APR can be very costly in the duration of your loan.
Ohio Mortgage Interest Rates: Adjustable Rate Mortgage (ARM)
Adjustable rate mortgages are mortgages that do not have a fixed mortgage rate, so the rate can change as the market and economy changes. These mortgages may be able to give you a great mortgage rate at the moment. While the first year may have a very affordable rate, you will have to look past that first year to what the loan rate may be in the future. When considering an adjustable rate mortgage, you need to take into account how long you plan on owning the home. If you are planning on selling the house in a few years, an adjustable rate mortgage may be a great option for you, but someone looking to buy a house for a long term investment may want to look into another option. Right now, some adjustable rate mortgages can be found with rates as low as 4.5%. These are great mortgages as long as you are well aware of the risks that may be involved.
Ohio Mortgage Interest Rates: Mortgage Refinance Rates
Many people decide to refinance their home when they have an adjustable rate mortgage. When deciding to refinance, you need to take into consideration what the outcome will be if you decide to refinance. In the long run, will the time and money spent on refinancing be worth it? If it is, then this is a great time to refinance and get a better mortgage rate. Refinancing rates are comparable to the rest of the market. You can find refinancing rates as low as 5.4% or better. Just be sure that refinancing is fit for your lifestyle and future plans.
Ohio Mortgage Interest Rates: Hints When Looking for a Mortgage
When looking for a mortgage, do not be afraid to shop around and compare. If a buyer decides to take the first quote that looks good, they may not be getting as good of a deal as they think. Today’s market is a buyers’ market, and if you do your homework, you can get a great loan with a great rate that will be a great advantage to you in the future.
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