Ohio Mortgage & Refinancing

Last Updated on June 5, 2017 by Taylor Welshe

Ohio always ranks as one of the best states in the country for business. This doesn’t mean its environment is entirely corporate-like. In fact, majority of its residents love it for its high quality education, relatively low cost of living, friendly locals, and abundant recreational activities. Cincinnati, Akron, and Dublin are just some of its top-notch cities, but there are many others that continue to attract the attention of home buyers and property investors. (Source: Livability.com)

The fact that The Buckeye State continues to grow in economy contributes to its impressive employment rate while it maintains an affordable cost of living. Housing here is also less pricey than many other states, and is actually the biggest factor influencing the low living expenses its residents enjoy. (Source: Sperling’s Best Places)

Affordability of home ownership in the state

With its cheaper housing prices, it’s easy to see why 66.4% of all homes here are owned and occupied. (Source: U. S. Bureau of Census)

It’s also worthy to note that median value of homes in OH is $125,300, representing a $70,000 difference with that of the countrywide median of $195,300. (Source: Zillow)

How much a house costs in the state still depends on the particular type of dwelling it classifies as. For instance, townhomes are the least expensive, with an average value of $67,649.09, followed by single-family homes, the values of which average at $82,078.55. Condominiums are the second-most expensive, with an average value of $96,328.60. PUD homes are the priciest at $106,804.92.

Becoming a home owner

These lower expenditures associated with home ownership in the state make it easier for consumers to make the switch from being a renter to becoming a home owner. However, they should still carefully and thoroughly assess their finances. Indeed, home ownership comes with numerous benefits, but it also comes with a great price.

Some of the most crucial factors for consideration before buying a home include how much one can afford; whether the buyer and his/her family intends to stay in the same residence for a long period of time; if down payment is required and if so, if their budget can afford it; and the current status of their credit score among several others.

The right type of mortgage

This depends on individual factors, including housing needs and preferences, as well as financial stability. All in all though, borrowers should understand the risks and rewards of the two major types of home buying financing services.

For those who want protection against the potential effects of an unstable market, security against increasing interest rates, and mortgage payment predictability, a fixed-rate mortgage may be the better option. On the other hand, those whose priorities involve securing the lowest interest rates – even if only for the first few years of the loan term – may find an adjustable-rate mortgage more appropriate for their situation.

Rate comparison: Always a must-do for all borrowers

There are several strategies that can help borrowers minimize mortgage-related expenditures. One of these is to compare interest rates. It’s important to understand that even just the slightest difference in percentage can already mean thousands of dollars in savings throughout the life of the loan.

Saving enough money for a down payment

There are many good reasons why home buyers should save as much as they can – if possible, at least 20% of the property’s selling price – before they make an offer for a house.

First off is to avoid having to purchase mortgage insurance, which lenders usually require borrowers who don’t have enough to put down as a deposit for the house. The expenses associated with this insurance product can quickly add up, making home owners spend more than necessary.

And even if a borrower doesn’t have to make a down payment, having a considerable savings will give them additional source of funds, which they can use in the future for monthly payments.

References:

Ohio Housing Finance Agency

USDA Rural Development

Home Affordable Refinance Program