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• Mortgage rates are influenced by economic conditions and the borrower’s personal financial status.
• In Cincinnati, you’ll find competitive mortgage rates and relatively affordable living costs.
• Fixed-rate mortgages offer stability, while ARMs have fluctuating rates.
• The higher your credit score and down payment, the lower your mortgage rate may be.
• Ohio assistance programs are available for first-time homebuyers.
Introduction to Mortgage Refinance Rates
For those embarking on the exciting journey of buying your first home in Cincinnati, a solid grasp of mortgage rates is key. This guide will shed light on how home loan rates are determined and equip you with the information you’ll need to seek out the most favorable terms. We’ll start at the very beginning with where Cincinnati mortgage rates come from.
Mortgage interest rates are the fees charged by lenders for borrowing money to purchase a home. These mortgage rates are determined by a complex combination of factors that can be separated into two buckets: the state of the economy and the borrower’s financial status.
Where Mortgage Rates Come From
Mortgage rates are influenced by a variety of factors tied to the economy. One of the most significant is the bond market. When the yield on the 10-year U.S. Treasury Note moves, mortgage rates tend to follow. If the yield goes up, rates go up. If the yield drops, rates do the same. But the housing market and inflation also play a role. A strong housing market and high inflation can push rates higher. A cooling housing market and low inflation can have the opposite effect. These factors are out of your control. But there are several determining factors that are in your control. Let’s look at those:
• Your credit score A conventional mortgage (one not backed by the government) typically requires a score of 620 or more. The higher the score, the lower your rate.
• Your down payment Making a larger down payment can result in a lower interest rate because lenders perceive a lower default risk.
• Your debt-to-income (DTI) ratio In general, lenders like to see a maximum DTI ratio of 36%.
See how your debts may affect your mortgage
Use SoFi’s debt-to-income calculator to determine your personal DTI number.
How Interest Rates Affect Home Affordability
Mortgage rates are worth spending time on because they play such a significant role in home affordability. Look no further than the chart below for proof. If you were to borrow $300,000 with a 30-year term and 6.00% rate instead of a 7.00% rate, you would save more than $60,000 over the life of the loan. As you can see, a shorter loan term also has a big impact on cost. Not everyone can afford the larger payments that come with a shorter term, but if you can, you can capture some savings by paying off the loan over a shorter timeline.
Interest Rate
Loan Term
Monthly Payment
Total Interest
6.00%
30-year
$2,398
$463,353
6.00%
15-year
$3,375
$207,577
7.00%
30-year
$2,661
$558,036
7.00%
15-year
$3,595
$247,156
Cincinnati Mortgage Rate Trends
Historical U.S. Mortgage Rates
Knowing the history of mortgage rates can help you make wise decisions about when to get into the mortgage marketplace. And the history of mortgage rates in the U.S. is a bit of a rollercoaster. The 30-year fixed-rate mortgage, for instance, hit an all-time high of 18.63% in 1981. That was a rough time for homebuyers. But after the financial crisis of 2007, rates dropped.
To get some perspective on what a “high” and “low” rate have looked like over the last half-century, consider the graphic. Then check the chart to see how Ohio’s rate has compared to the national average in recent decades — as you can see, the local rate is often below that of the nation as a whole. (The Federal Housing Finance Agency stopped compiling this state-level data after 2018.)
Year
Ohio Rate
U.S. Rate
2000
8.02
8.14
2001
7.03
7.03
2002
6.53
6.62
2003
5.66
5.83
2004
5.67
5.95
2005
5.90
6.00
2006
6.48
6.60
2007
6.37
6.44
2008
5.97
6.09
2009
5.07
5.06
2010
4.77
4.84
2011
4.53
4.66
2012
3.70
3.74
2013
3.97
3.92
2014
4.21
4.24
2015
4.01
3.91
2016
3.79
3.72
2017
4.15
4.03
2018
4.59
4.57
Source: Federal House Finance Agency
Types of Mortgages Available in Cincinnati, Ohio
In Cincinnati, you have a variety of mortgage options to consider. Familiarize yourself with the most common ones before you begin your loan search in earnest.
Fixed-Rate Mortgage
With a fixed-rate mortgage, the interest rate on your loan remains the same for the entire loan term. This means you can count on consistent monthly payments that won’t catch you off guard. Fixed-rate mortgages are available in a variety of terms from 10 to 40 years. This flexibility allows you to choose the loan term that best fits your financial situation and goals. When interest rates are low, a fixed-rate mortgage can be particularly advantageous. Not only can you lock in a great rate, but you can also enjoy the peace of mind that comes with knowing your rate and payments won’t change, even if market rates rise.
Adjustable-Rate Mortgage (ARM)
An adjustable-rate mortgage (ARM) might be the right choice, especially if you plan to sell your home before its initial fixed-rate period ends. Typically, ARMs start with a lower initial interest rate than fixed-rate loans. For example, a 5/1 ARM has a fixed rate for the first 5 years. After that, the rate can change (going up or down) once a year. There are also 7/1 ARMs and 10/1 ARMs. The initial lower interest rate means you’ll have lower payments for a while, but it also means that your payments could go up after the fixed period. It’s important to understand when the rate can change and how high it might be able to go.
FHA Loan
With the backing of the Federal Housing Administration, FHA loans are known for their more forgiving eligibility criteria compared to conventional loans. With a credit score of 580 an FHA borrower can qualify for a loan with a down payment as low as 3.5%. And even those with lower credit scores (500 to 579) can potentially qualify if they put down 10%. These loans are made to open the doors to homeownership, particularly for those who qualify as a first-time homebuyer.
VA Loan
VA loans are a great opportunity for eligible active-duty military personnel, veterans, reservists, National Guard members, and surviving spouses. One of the biggest benefits of a VA loan is that you can buy a home with no down payment. This can be a huge help if you don’t have a lot of money saved up. VA loans also tend to have more competitive rates and don’t require you to buy private mortgage insurance (PMI). If you’re looking to buy a home in Cincinnati, Ohio, a VA loan could be a great option for you. It’s a way to get into a home with favorable terms and conditions that can make the process easier on your wallet.
Jumbo Loan
For 2025, the loan cap for a single-family home in most U.S. areas, and throughout Ohio, is $806,500. While jumbo loans often carry higher interest rates and more strict qualification requirements, such as higher credit score thresholds, they are a good option for purchasing more expensive homes. You’ll want to apply the same rigor to screening loan offers for a jumbo loan as you would to any type of mortgage loan.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Cost of Living in Cincinnati
The cost of living in Cincinnati, Ohio, is quite reasonable, which is one of the city’s many charms. (It landed the city on SoFi’s list of best affordable places in the U.S.) The city’s median home sale price is approximately $254,000, according to Redfin.
Below you can see how Cincinnati stacks up to other Ohio cities when compared to the cost of living in the U.S. as a whole, which would be 100 on this scale.
City
Cost of Living
Cincinnati
96.1
Cleveland
91.4
Columbus
95.4
Dayton
96.5
Findlay
111.7
Lima
92.8
Toledo
95.6
Youngstown-Warren
92.5
Get Your Best Possible Rate in Cincinnati
There are a few things you can do in advance to better your chances of snagging the best possible mortgage rate in Cincinnati. First up, take good care of your credit score. The higher it is, the more attractive your rate can be. Check your credit report for inaccuracies and work to correct any you find. And pay every bill on time. Next, work on that debt-to-income (DTI) ratio. If you can keep it at 36% or lower, lenders will be impressed.
A chunky down payment can also work in your favor, as it reduces the loan amount and the interest that comes with it. Going through the mortgage preapproval process can help you set a budget by showing you exactly what a lender thinks you can qualify to borrow. Having that preapproval letter is also helpful when you put in an offer — it shows the seller you’re motivated.
Helpful Tools & Calculators
A mortgage payment calculator can help you understand the impact of different mortgage rates on what your monthly payments would be. You can plug in different loan terms and rates to see how they would affect monthly payments. All of these calculators will be helpful at different times in your home search.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
How to Evaluate Loan Offers in Cincinnati
Securing a competitive mortgage rate is a smart financial move, so once you have offers in hand from multiple lenders (a must), you should compare them head to head. Don’t just look at interest rates. Compare the loans’ annual percentage rate (APR).
When you’re ready to make a decision, if you’re concerned about rates rising, you can opt to pay your chosen lender a fee to lock in your rate for up to 90 days. This can provide both peace of mind and financial stability.
Cincinnati Mortgage Resources
Cincinnati has resources available to those looking to purchase their dream home, especially if you qualify as a first-time homebuyer or have limited financial means (or both). The Ohio Housing Finance Agency (OHFA) is your ally, offering down payment assistance programs like Your Choice Down Payment Assistance. OHFA’s Ohio Heroes program provides a discounted mortgage interest rate to police, nurses, teachers, and others who serve. Its Grants for Grads offers reduced rates and down payment assistance to recent degree recipients. The state also has a Mortgage Tax Credit. To qualify, you’ll need to meet specific income and purchase price limits, and take a free homebuyer education course, among other things.
If you’re buying a home in Cincinnati, you can expect to pay between 2% and 5% of the loan value in closing costs. What exactly are these costs? Well, they include things like loan origination fees, appraisal fees, and title insurance. The total amount you’ll pay can be influenced by the property’s value and location. Eligible homebuyers might find that programs offered by the Ohio Housing Finance Agency provide valuable assistance with closing costs.
The Takeaway
Cincinnati’s mortgage landscape offers a variety of choices for homebuyers. Keeping abreast of current mortgage rates and exploring available assistance programs can be highly beneficial. By doing so, you can make smart choices that align with your financial goals, leading to successful and sustainable homeownership in Cincinnati.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
How do I find the best mortgage rates in Cincinnati, Ohio?
To secure the best rates, shop around and compare offers from multiple lenders. Consider both fixed-rate and adjustable-rate mortgages (ARMs) to find the best fit for your financial situation and long-term goals. Compare lender offers using the APR (annual percentage rate), which takes into consideration fees as well as interest.
What factors influence mortgage rates in Cincinnati?
Your credit score, down payment size, and the loan type you select are key factors that can impact the mortgage rates you’re offered.
Will mortgage rates drop in Cincinnati?
While we can’t predict the future, keeping an eye on economic indicators can help. Watch the yield on the 10-year Treasury Note, as mortgage rates tend to follow that. Right now the experts at Fannie Mae are forecasting that rates will end 2025 at an average of 6.30%. But if you find a good rate for your home purchase and are worried about rates going up, consider locking it in.
Is now a good time to buy a house in Cincinnati?
Cincinnati is still more affordable than many other cities, but home prices have risen more than 5% year-over-year. That said, there may be a best time of year to buy in Cincinnati: Prices tend to bottom out in January and February, with predictable highs in June and July as families move and settle in before school starts.
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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