Ohio Mortgage and Refinance Rates

Ohio mortgage overview

As of Saturday, May 27, 2023, current interest rates in Ohio are 7.14% for a 30-year fixed mortgage and 6.59% for a 15-year fixed mortgage. Homes in the Buckeye State are relatively affordable, a fact that has drawn attention from homebuyers around the country in recent years. The average home value in Ohio is about $217,000 as of December 2022, which is $140,000 lower than the national average.

Top 5 Bankrate mortgage lenders in Ohio

• Third Federal Savings & Loan Association
• LoanMonkey
• Ally Bank
• Better.com
• Sage Mortgage

Methodology

Bankrate helps thousands of borrowers find mortgage and refinance lenders every day. To determine the top mortgage lenders, we analyzed proprietary data across more than 150 lenders to assess which on our platform received the most inquiries within a three-month period. We then assigned superlatives based on factors such as fees, products offered, convenience and other criteria. These top lenders are updated regularly.

Third Federal Savings and Loan Association

Third Federal Savings and Loan is a mid-sized bank based in Cleveland, Ohio, offering loans in 25 states and Washington, D.C. Through this bank, you can obtain a fully underwritten preapproval (called “Early Approval”) good for six months, giving you more time to find a home to purchase, and a lower-cost loan that only requires $295 upfront in exchange for a higher interest rate.

Strengths:

• Fully underwritten preapproval lasts for six months
• Can request to reduce your interest rate if rates fall, even after locking it
• Offers down payment assistance up to $3,000 for eligible borrowers

Weaknesses:

• No FHA, VA or USDA loans
• No eligibility requirements available online
• Can’t apply through the mobile app

Read Bankrate's Third Federal Savings and Loan Association mortgage review.

LoanMonkey

LoanMonkey, a mortgage broker and lender, offers “The Online Everything Mortgage” that allows borrowers to manage their loan applications completely online. The broker and lender was founded in 2019 by mortgage industry veterans and animal enthusiasts Sean Marsh and Christopher Russow, and is headquartered in San Diego, California.

Strengths:

• Streamlined application managed online; takes approximately 15 minutes to complete
• Low overhead can yield lower rates
• Closings average 30 days

Weaknesses:

• Only available in some states
• Doesn’t offer some specialized mortgages, including construction and USDA loans

Read Bankrate's LoanMonkey review.

Ally Bank

Ally Bank began offering direct-to-consumer home loans in 2016. The bank and lender provides several mortgage options, including conventional loans, jumbo loans and adjustable-rate loans in five- seven- or 10-year terms. Ally Bank also offers refinancing options, including rate-and-term and cash-out, but doesn't offer FHA loans, VA loans, USDA loans or home equity loan options.

Strengths:

• Preapproval in as little as three minutes and closings up to 10 days faster than industry average
• Transparent interest rates

Weaknesses:

• No FHA, VA or USDA loans
• No home equity lines of credit (HELOCs) or home equity loans
• No branch locations

Read Bankrate's Ally Bank mortgage review.

Better.com

Better.com is a direct online lender established in 2016 that provides a completely online process where rates, loan preapprovals and resources are available 24/7. The lender offers a variety of mortgage options, including conventional and jumbo fixed-rate and adjustable-rate mortgages and bridge loans.

Strengths:

• No commissions or fees charged
• Smart technology automatically looks for and applies discounts to eligible borrowers
• Automated process yields a preapproval letter in three minutes
• Will beat competitor's offer or give you $100 (only available to applicants who go directly through Better)

Weaknesses:

• No branch locations
• No home equity lines of credit (HELOCs) or home equity loans
• Some government loans not available

Read Bankrate's Better.com mortgage review.

Sage Mortgage

Sage Mortgage is an online mortgage company that both underwrites loans and works with multiple wholesale lenders. The company can help you secure a preapproval in one to two days, and the typical closing takes 27 days.

Strengths:

• Works with multiple wholesalers to offer competitive rates and fast cycle times
• Dedicated loan officer works with borrowers throughout the entire process
• Most mortgages close within 27 days

Weaknesses:

• Doesn’t offer VA loans
• Doesn’t offer home equity loans or home equity lines of credit (HELOCs)

Read Bankrate's Sage Mortgage review.

First-time homebuyer programs in Ohio

The Ohio Housing Finance Agency (OHFA) has a variety of loan options to assist low- and moderate-income homebuyers, including first-time homebuyers and repeat buyers. OHFA does not lend funds directly to homeowners, but works with approved lenders, credit unions and mortgage companies to offer competitive rates on 30-year fixed-rate mortgages.

To qualify, you’ll need to meet credit score requirements, debt-to-income ratios and income and purchase price limits. You generally need a credit score of 640 or higher for a conventional, USDA or VA loan. FHA loans require a score of 650 or higher. Income and purchase price limits vary by county.

You can apply for one or more of the following programs:

OHFA Your Choice! Down Payment Assistance: If you need help with a down payment or closing costs, you can apply for OHFA assistance in the amount of either 2.5 percent or 5 percent of the home’s purchase price. The amount can be used toward a down payment, closing costs or other expenses. The amount can often be forgiven after seven years, but it will need to be repaid if you sell or refinance the home during that period.

The amount can often be forgiven after seven years, but it will need to be repaid if you sell or refinance the home during that period.

OHFA Ohio Heroes: This program provides discounted mortgage rates to Ohioans who work in certain careers that serve the public good. These careers include:

• Veterans and active-duty military members
• Police officers, firefighters and paramedics
• Physicians, nurse practitioners and nurses
• Teachers and school administrators

This program can be combined with down payment assistance.

OHFA Grants for Grads: If you graduated with a college degree in the last 48 months, OHFA will help you buy a home in Ohio. The Grants for Grads program provides a discounted mortgage interest rate combined with down payment assistance of 2.5 percent or 5 percent of the purchase price. The down payment assistance can be forgiven after five years, but must be repaid if you sell your home and move out of Ohio within that period.

OHFA Mortgage Tax Credit: Homebuyers can also receive a federal tax credit on a portion of their mortgage interest through the OHFA’s Mortgage Tax Credit program. The amount is determined by factors like the home’s location and the type of mortgage. This credit is in addition to the IRS mortgage interest deduction. The Ohio credit cannot exceed the homeowner’s federal income tax bill, after deductions, exemptions and other credits. There are two programs: Mortgage Tax Credit Plus, a tax credit of 40 percent of mortgage interest up to a maximum of $2,000 per year; and Mortgage Tax Credit Basic, a tax credit of 30 percent for a bank-owned property, 25 percent for a property in a target area and 20 percent for other properties.

Ohio mortgage refinancing

OHFA does not currently offer a government-backed refinancing program. A previous program for foreclosure prevention assistance, Save the Dream Ohio, stopped taking applications in October 2019.

Use Bankrate’s mortgage refinance calculator to see how much you can save by lowering your rate.

Ohio mortgage resources

• Ohio first-time homebuyer resources
• Ohio loan limits by county