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Compare mortgage refinance rates in Ohio.
Key Points
• Mortgage refinance rates in Ohio are influenced by economic factors such as Federal Reserve policy, inflation, the bond market, housing inventory, and your credit score.
• Even a 1% dip in your mortgage refinance rate can make a world of difference, slashing your monthly payments and saving you a bundle in the long run.
• Cash-out refinancing can help you access a lump sum of cash borrowed against your home equity, which can then be put toward a variety of financial needs.
• FHA refinances, backed by the Federal Housing Administration, can often secure you lower mortgage refinance rates and more flexible terms than conventional loans.
• By switching to a 15-year mortgage in Ohio, you could pocket significant interest savings in the long run, even if it means slightly higher monthly payments.
Introduction to Mortgage Refinance Rates
A home loan refinance is essentially a do-over for your mortgage, with a new set of terms and a fresh interest rate. When mortgage rates fall, it can be a money-wise moment to refi your loan.
The motivation for your mortgage refinance can dictate the type of refi you choose, and the type of refi will play a role in determining your interest rate. This guide is here to help you navigate the landscape of mortgage refinance rates and to empower you to secure the most favorable rate available. Understanding the factors at play and taking the right steps can make a substantial difference in your financial well-being.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Where Do Mortgage Refinance Interest Rates Come From?
Mortgage refinance rates are not arbitrary numbers; they are influenced by an array of economic factors and your unique financial standing. Economic indicators such as Federal Reserve policy, inflation, the bond market, and housing inventory all play a role. Inflation, for example, can lead to higher rates, as can a hot real estate market, where inventory is low and prices are climbing. The Federal Reserve’s monetary policy can also have a ripple effect, impacting the direction in which mortgage rates shift nationally and, more specifically, in Ohio.
Another facet that impacts mortgage refi rates is your personal credit profile. Those with higher scores appear more creditworthy to lenders and can therefore secure more favorable rates and terms. Those with lower scores, who were perhaps late with debt payments in the past or missed some bills altogether, are likely to be assessed higher refi mortgage rates.
By keeping an eye on these factors and staying informed, you can better choose the most opportune moment to refinance your home loan.
How Interest Rates Affect Home Affordability
Just like when you first got your mortgage, interest rates are a big factor in how much you’ll be paying each month. Your loan amount, the repayment term, and the interest rate all come together to determine your monthly payment. Here are some specific numbers to give you a better understanding of this important topic:
• Say you have a $200,000 loan with a 6.00% mortgage refinance rate and a 30-year repayment term. That would mean a monthly payment of $1,199.
• But if that same loan had an 8.00% mortgage refinance rate, you’d be looking at a $1,467 monthly payment.
• What’s more, the lower 6.00% interest rate could save you nearly $100,000 over the life of the loan. Think about how that money could be put to good use!
While this example uses a major difference in interest rates to prove a point, smaller shifts can also be a very good thing for your financial health. Even though a less significant interest rate drop might not seem like much in terms of monthly savings, it can really add up over the years.
Why Refinance in Ohio?
Refinancing your mortgage could be a smart move if current interest rates are lower than when you took out your loan. Depending on your reasons for refinancing (such as reducing your monthly payments or taking cash out of your home equity), you can likely find a product to suit your needs.
Common Reasons to Refinance a Mortgage
Homeowners refinance in Ohio (and other states) for various reasons:
• Qualifying for a lower interest rate thanks to improved credit or market conditions.
• Lower interest rates: Perhaps the market has shifted in your favor, or you have built your credit score, making better rates and terms possible.
• Repayment term change: A longer term can mean lower monthly payments, while a shorter term can help you pay off the loan faster and save on interest.
• Cash out home equity: You might want to tap into your equity to cover major expenses, such as education costs.
• Adjustable rate change: Refinancing can switch to a fixed-rate loan, protecting against future rate increases.
• FHA loan with 20% equity: Once you hit that equity milestone, refinancing can help you avoid permanent FHA mortgage insurance premiums for FHA loans taken after 2013 with less than 10% down.
How to Get the Best Available Mortgage Refi Rate
Finding the most favorable rate can take some time and energy. To secure a competitive mortgage refinance rate, consider these moves:
• Build your credit score: That means timely payments, every time, and avoiding new debt.
• Lower debt-to-income ratio: Shoot for 36% or less.
• Compare rates and fees: Be sure to shop around for the best deal.
• Be smart about rates: Focus on annual percentage rates (APRs) vs. interest rates alone to get a truer picture of how much your loan will cost. APRs incorporate fees and other important features.
• Weigh mortgage points: Each point you buy costs 1% of the loan amount and typically lowers your interest rate by 0.25%.
• Opt for a shorter term: Doing so can mean lower rates and less interest in the long run, though your monthly payment will be higher.
Understand Trends in Ohio Mortgage Interest Rates
Mortgage rates have seen their share of ups and downs in recent years. If you’re a homeowner in Ohio who’s thinking of refinancing, here’s a deeper dive into where rates have been nationally and in your home state, as well as where they may be heading.
Historical U.S. Mortgage Interest Rates
Over the past 10 years, mortgage refinance rates have seen some big changes. In 2012, the typical 30-year fixed mortgage rate was around 3.15%. The lowest it got was 2.65% in 2020. By 2023, rates had climbed to around 7.00%. And while many expected a decline in 2025, Freddie Mac’s prediction is that current mortgage rates will remain on the higher side for a bit longer.
But don’t let that discourage you. These changes reflect the broader economic environment, and when you consider that rates peaked at almost 20% in 1981, perhaps 7.00% isn’t so bad.
Historical Interest Rates in Ohio
Ohio’s mortgage refi rates often shadow the national scene. If you’re a homeowner in Ohio, keeping an eye on these trends could lead you to the perfect moment to refinance. Imagine snagging a lower rate during a dip and watching the savings add up over the years. It’s not just a possibility — it could be your reality.
The chart below chronicles almost two decades of rates in Ohio vs. the national rate, which can help you see trends at both levels. (The data points end at 2018 since the Federal Housing Finance Agency stopped compiling state by state intel at that time.)
| Year | Ohio Rate | National 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 |
Choose the Right Mortgage Refi Type
You might be aware that refinance rates tend to be a tad higher than those for new home purchases. However, the interest rates themselves can vary based on the type of mortgage refinance you opt for. There’s a whole menu of choices out there, each with its own set of perks.
Just one caveat: In terms of how soon you can refinance your mortgage, you typically need at least 20% equity in your home before you can pursue replacing your loan.
Conventional Refi
Conventional refinancing, also known as a rate-and-term refi, typically comes with slightly higher rates than government-backed loans (FHA, VA, and USDA, each of which has its own specialized qualification criteria). This option is best for homeowners who have a strong credit profile (meaning a score of 620 or higher) and ample equity (20% or higher) in their home.
The beauty of a conventional refi is the flexibility it offers. You can adjust your interest rate and loan term to better align with your financial goals. Looking to lower your monthly payments? Consider extending your loan term. Want to be mortgage-free sooner? Shorten the term.
Cash-Out Refi
Cash-out refinances can be a smart way to leverage the equity you’ve built in your home by replacing your existing mortgage with a larger one. The difference is yours to use as you see fit. Whether it’s consolidating debt, embarking on home improvements, or tackling other financial goals, a cash-out refinance could be the solution.
For instance, if your home is valued at $500,000 and your mortgage balance is $300,000, you have $200,000 in equity. Most cash-out refinance loans allow you to access up to 80% of your equity. So in this instance, you could get a sum over $100,000 to use as you like.
15-Year Mortgage Refi
Opting to swap a 30-year mortgage for a 15-year home loan refinance in Ohio can be a savvy financial move. Though the monthly payments may seem heftier, the lower refinance rate and shorter term can work wonders in reducing your overall interest payments.
To put it in perspective, here’s an example:
• If you have a 30-year, $1 million loan at a 7.50% interest rate, this would typically translate to a monthly payment of around $6,992 and total interest paid of about $1,517,167. (You read that correctly: The overall interest is more than the loan’s principal.)
• If you were to refinance to a 15-year mortgage at a 7.00% rate, your monthly payment would increase to approximately $8,988. That may or may not work for your budget. However, if you could swing it, the total interest paid would be slashed to around $617,891, saving you nearly $900,000 over the life of the loan. That could make a big difference in the state of your personal finances and your net worth.
With numbers that significant, it might be worthwhile to contemplate whether a shorter loan term could be right for you.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) can be a savvy choice for those who foresee a move or refinance before the rate adjusts. If you’re in a 30-year fixed-rate mortgage but have plans to relocate in a few years, an ARM could trim your monthly payments for the time that you are still owning your property.
Just one caveat: It’s important to understand that the rate may climb, which could mean heftier payments down the line. This could be a significant financial burden if you wind up staying put vs. selling your property and moving on. Weigh your financial goals and the risks before taking the leap.
FHA Refi
FHA refinances, insured by the Federal Housing Administration, often offer lower mortgage refinance rates compared to conventional loans. These refinances are particularly beneficial for homeowners who already have an FHA loan. FHA Simple Refinances and FHA Streamline Refinances are designed for those with existing FHA loans, and they can reduce required documentation.
For homeowners without an FHA loan, you may still be able to benefit. Options include the FHA cash-out refinance and the FHA 203(k) refinance, which is ideal for those planning home renovations. These alternatives can provide lower rates and more flexible terms, making them a good option for a variety of financial needs.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, are known for their low mortgage refinance rates. To qualify for a VA refinance, you must have an existing VA loan. That means you are either an active-duty member of the military, a veteran, or perhaps a spouse.
The most common type of VA refi you’ll find in Ohio is the Interest Rate Reduction Refinance Loan (IRRRL), which is designed to lower your interest rate and reduce monthly payments. This can be a cost-effective way to improve your financial standing, especially if you plan to stay in your home for the long term. VA refinances can be a valuable option for securing better loan terms without the need for a full appraisal or credit check.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Compare Mortgage Refi Interest Rates
Now that you have a better picture of several key refinance options in Ohio, here’s advice on how to secure a competitive mortgage rate:
• Compare lenders’ annual percentage rates (APR), which include interest, fees, and discount points (or mortgage points, which raise upfront costs but can lower the loan’s interest rate).
• Be sure to consider the total cost of refinancing, including closing costs, to ensure your savings are worth it.
• If your current rate is already a good deal lower than what’s out there, refinancing might not be the best move.
• Lower rates can sometimes mean higher mortgage refinancing costs. Make sure you have the full financial picture of upfront costs and payments over the life of the loan before signing off on a refi in Ohio.
• Crunch the numbers with a mortgage refinancing calculator to get a clearer picture of your monthly payments and potential savings.
Use an Online Refinance Calculator
When it’s time to compare refi rates, terms, and options, there’s no need to start tapping the buttons on an old-school calculator. Online refinance calculators can be a great way to get a rough estimate of what your new monthly payment might be and to see how different refinance options stack up against each other.
These calculators take into account your current loan balance, the new mortgage refinance rate, and the term of the new loan. By inputting your specific financial details, you can get a good idea of what your potential savings might be and whether or not refinancing makes sense for you. They can also help you see the long-term financial implications of refinancing, which can help you make a more informed decision.
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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.
The Takeaway
Refinancing your mortgage in Ohio can be a smart financial move, but it requires careful thought and planning. Whether you want to lower your mortgage refinance rate, access your home’s equity, or switch from an adjustable to a fixed interest rate, it’s important to understand the different types of refinances and the specific requirements for each. By comparing offers from multiple lenders, you can review your options and choose the best rate and terms for your financial situation.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
How much does 1 percent lower your monthly payment?
A 1% reduction in your mortgage interest rate can save you a significant amount of money. Exactly how much will depend on such factors as your loan amount and term. For example, if you have a 30-year, $300,000 loan at a 7.00% interest rate, your monthly payment will be $1,996. If you can reduce your interest rate to 6.00%, your monthly payment will drop to $1,799. That’s a savings of about $197 each month. A lower interest rate will give you more money in your pocket each month and can add up to big savings over the life of the loan.
Can I get a lower interest rate without refinancing?
If you have some extra cash on hand, you might consider a mortgage recast. With a recast, you make a lump sum payment toward your principal, and your lender then recalculates your payments. This won’t change your mortgage refinance rate, but it can lower your monthly payments and save you a significant amount of interest over the life of your loan. Another option is to request a loan modification if you are having difficulty paying what you owe each month or negotiate with your lender for a lower interest rate.
Can I negotiate a lower interest rate with my lender?
Absolutely! You can always reach out to your lender and see if they’re willing to work with you on a lower rate. If you have a history of on-time mortgage payments, a low debt-to-income ratio, and a good credit score, your lender may be willing to adjust your rate without going through the refinance process.
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*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.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .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.
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More refinance resources.
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