Interest Rates & Costs

Not always but usually origination fees and discount points are optional. It depends on your loan and goals.

• • Origination Fees
    •  A fee your lender charges to process your mortgage.
    • Typically cost: 0.5%–1% of the loan amount.
    • Are they required? Usually yes, but it can sometimes be negotiated or offset by a slightly higher interest rate (no-fee loans).
  • Discount Points
    • Optional upfront fees you pay to “buy down” your interest rate.
    • 1 point = 1% of the loan amount.
    • Points can typically reduce your interest rate by 0.25% per point, but this can vary by market conditions.
    • They are best for buyers who plan to stay in the home long-term.

When buying a home, closing costs can be as low as 1% depending on the home’s purchase price.  Closings costs vary depending on the loan amount and the borrower’s profiles (credit score, down payment and loan to value percentage)

Once you apply for a mortgage, we give you a Loan Estimate within three business days. This will break down:

• Estimated closing costs
• Monthly payment
• Loan terms
• Cash needed at closing
• How much house can you afford?

Absolutely, you can lock in your interest rate by using a fixed rate mortgage. We let you lock your interest rate when you apply, protecting you from daily fluctuations.
You can lock in your rate for 30 or 60 days at no fee.
Extensions beyond that, or longer custom periods may incur a fee depending on the loan product.

APR stands for Annual Percentage Rate. It’s the true yearly cost of borrowing money, expressed as a percentage.
It includes:

• Interest rate (the base cost of the loan)
• Lender fees (like loan origination fees, discount points)
• Mortgage insurance (if required)
• Other closing costs (in some cases like the title company’s settlement fee)

While the interest rate tells you how much you’ll pay in interest each year, the APR gives you a fuller picture of what you’re really paying.

First Ohio Home Finance offers both fixed rate and adjustable rate mortgage options. Most borrowers will opt for a fixed rate mortgage, as it’s a powerful tool to lock in a predictable rate until you have the opportunity to refinance.

Interest rate ranges vary based on the loan type, borrower profile, and market conditions.

• Credit Score: Higher scores = better rates.
• Down Payment: Larger down payment often means lower rate.
• Loan Term: Shorter terms usually come with lower rates.
• Loan Type: Government-backed loans (FHA, VA, USDA) have different rate structures.
• Market Trends: Mortgage rates fluctuate daily based on inflation, bond yields, and Federal Reserve policies.

Sites like OHFA’s ohiohome.org show daily updated rates in Ohio.