When buying a home in Ohio, it’s essential to understand the various factors that affect your mortgage. Here’s a breakdown of key elements like down payment, loan terms, loan types, interest rates, and more. This information will help you make informed decisions as you navigate the home-buying process with The Bison Group.

Down Payment

The standard rule of thumb is a 20% down payment. However, some loans, such as FHA loans, allow as little as 3.5% down, making it easier for first-time buyers or those with limited savings to purchase a home. Your down payment directly affects your loan size—putting more money down reduces your monthly payments and gives you access to more competitive interest rates. Larger down payments can also help you avoid Private Mortgage Insurance (PMI), which is often required for lower down payments.

The Bison Group can guide you through these options and help you determine the down payment amount that fits your budget.

Loan Term

The length of your mortgage, or loan term, can impact both your monthly payments and total interest paid. Common loan terms include:

30-Year Fixed: A popular option, offering lower monthly payments spread over a longer period. The interest rate is fixed, meaning it stays the same for the life of the loan.
15-Year Fixed: Offers a lower interest rate, but with higher monthly payments. The shorter term means you pay off the loan faster and pay less in interest over time.

At The Bison Group, we’ll help you assess which loan term works best for your financial situation and long-term goals.

Loan Type

There are several types of mortgage loans, but the most commonly used are FHA, VA, and USDA Loans.

FHA Loans are government-backed and popular with first-time buyers, offering low down payments (as little as 3.5%) and flexible credit requirements.
VA Loans are for veterans and active military members, offering no down payment and no PMI.
USDA Loans are for buyers in rural areas and offer low or no down payment options.

We’ll help you choose the right loan type based on your needs and eligibility.

Interest Rate

Your interest rate will impact the total cost of your mortgage. Rates vary depending on your credit score, down payment, and the loan type you choose. While our mortgage calculators typically provide an average rate, your actual rate will depend on your financial profile.

In Ohio, interest rates may fluctuate with the broader economy. Nathan Back and The Bison Group will connect you with trusted lenders to secure the best rate possible for your loan.

Property Tax Rate

Property taxes in Ohio vary by county and are based on the home’s assessed value. Your mortgage calculator will estimate property taxes, but you can adjust this figure in the calculator’s advanced options to reflect the actual rate in your area.

Ohio’s property tax rates are typically in the range of 1.2% to 2.5% depending on the location, which can significantly impact your monthly payment.

Home Insurance

Lenders typically require home insurance to protect your investment. Your mortgage payment will include estimated home insurance costs, but you can update this amount in the advanced options based on quotes from insurers.

At The Bison Group, we’ll help you find reputable home insurance providers to protect your home from unforeseen events.

HOA Fees

If you purchase a home in a community with a Homeowners Association (HOA), you’ll need to budget for monthly or annual HOA fees. These fees cover maintenance and amenities in the community. Make sure to factor this cost into your overall home budget, as these fees can vary widely depending on the property.