How Much Will Your Mortgage Be in Ohio?
Ohio, The Buckeye State, has one of the healthiest housing markets in the United States. A steady increase in property can be seen through all Ohio counties with Ohio homeowners spending less than 19% of their monthly income on housing.
Home to a considerable number of industries and scenic property, Ohio has seen a spike in homeownership over the recent years.
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Factors That Can Affect Your Ohio Mortgage Calculations
Home Prices in Ohio
With a population of 11.6 million, Ohio's housing costs are about average when compared to other states. While it varies from county to county, the median cost of a home across the state is $141,000 based on data from August 2019. However, the average price listing is $179,000 and home values have risen by 5.4% between 2018 to 2019.
It is predicted that prices will continue to grow steadily over the coming years. You can expect higher property values in the state capital of Columbus with the median home currently valued at $157,900. Prices are significantly cheaper in Cleveland, averaging $58,000 for a home, right by the shores of Lake Erie.
Property Taxes in Ohio
Property taxes vary from county to county and are slightly higher than the national average with the money being put toward parks, schools and police departments. The median effective property tax rate is 1.57%.
Ohio Income Tax
Income tax in Ohio is calculated in brackets, meaning the higher your income, the more tax you will pay. The average income for an Ohio resident is $48,739, which will be taxed by both the state and locally with school districts and municipalities collecting taxes as well. Local tax rates vary throughout the state but do not exceed more than 3%. Additionally, sales tax for the state of Ohio is 5.75%.
Ohio Job Stats to Consider
Ohio has a thriving manufacturing industry, known for producing rubber, plastics, fabricated metals and more. According to the U.S. Bureau of Economic Analysis, Ohio’s GDP in 2018 reached $676 billion. Ohio is also one of the leading export states for motor vehicles and machinery. Big name companies such as Whirpool, Ford, General Electric all have a strong presence in the state. There are several Fortune 500 countries with headquarters in Ohio and the state holds a lot of its employment in major companies such as Walmart, Kroger, Ohio State University and Mercy Health.
The unemployment rate in Ohio is slightly higher than the national rate of 3.7%. In 2019, it was reported as 4% by the U.S. Bureau of Labor Statistics.
Job Stats (Civilian Labor Force, Employment, Unemployment)
Other Ohio Costs That Can Affect Ohio Mortgage Calculations
Ohio is ranked as one of the least expensive places to live for homeowner’s insurance with the average homeowner paying $797 annually for their premium. Natural disasters are not common in the state and most insurance policies cover mainly hail and wind damage. For flood coverage, you will need to obtain an additional policy.
Ohio Home Inspections
After making an offer on a house, you will need to schedule a home inspection to assess the property’s condition. A home inspection typically includes an overview of the structural foundation, basement, roof, attic, walls, appliances, plumbing and electrical. The average cost of a home inspection will depend on your property size. However, they generally average between $300 to $500.
Prior to the inspection, the inspector should give you a list of what they will cover and options for additional services such as mold, termites or water quality.
Closing Costs in Ohio
Other factors to consider when purchasing a home in Ohio is the closing costs of the mortgage. This refers to the fees that you will have to pay to the lender as part of closing a home loan. The closing costs average around 2.1% of a home’s value and typically cover the origination services of tax service, origin points, loan processing, underwriting, commitment and document preparation. This may not be the case with every mortgage and will depend on your lender and your loan.
Title insurance may be another cost to consider. The lender’s loan policy will not cover your interest in the title, so you will need to buy a separate owner’s policy to protect against financial loss due to covered claims against your title. This should cover any legal costs that may be incurred if your title insurance company has to defend your title against covered claims.
As part of Ohio law, there is also a property conveyance fee of $1/$1000 or 10% of the price. This fee goes to the state. Counties can also levy an additional $0.30 for land and lot transfers.