Free Online Closing Cost Calculator for Ohio Buyers

The easiest way to calculate closing costs when buying a house in Ohio is to use our closing cost calculator.

You can take time to sit down and make an inventory of each cost, but the quickest and easiest way to have a thumbnail accounting of the closing costs is to use our free online calculator.

Ohio buyers should be prepared to pay 1% to 6% of the property sales price for closing costs.

When you hire and pay your own real estate agent, you’ll need to add another 2%-3% of the final sale price to the homebuyer’s final bill.

Your costs are impacted by the location of the home you’re buying, the age of the house, the lender you select, the type of property and the price you agree to pay.

Using the average price of an Ohio home, your closing costs would total about $4,200.

Ohio closing costs for homebuyers include a list of required fees and any service expenses related to the home purchase the buyer elects to add to the list.

Let’s look at the specifics in each category.

Typical Closing Costs

This list includes costs that frequently appear on the final closing document for Ohio buyers, including:

• property appraisal
• escrow document preparation 
• fund management while in escrow
• loan origination
• lender application
• title insurance
• hazard insurance
• prepaid property taxes
• survey charges (if necessary)
• notary fees
• credit report copies
• transfer taxes (in some counties)
• homeowner association filing
• prorated monthly HOA fee

Elective Closing Costs

These fees and services might be included on the final closing cost statement, but some buyers prefer to pay for these outside the escrow and closing processes.

• home inspections charges
• real estate attorney fees
• escrow impoundment account for future property taxes
• escrow impoundment account for future mortgage payments
• buyer’s agent commission
• discount loan interest points
• escrow impoundment account for future HOA payments

You can reduce your buyer closing costs in a number of ways, including:

1. applying for Ohio first-time homebuyer assistance programs that offer closing cost grants from federal, state, and local agencies and consumer groups.
2. shopping for the best service prices, including escrow, title, home inspectors, and negotiating real estate commission.
3. negotiating with lenders to reduce or eliminate some of the closing costs.
4. negotiating with the seller about who pays Ohio closing costs for specific services and asking them to cover some or all of them.

There are several ways to avoid closing costs when buying a home in Ohio.

Negotiating to Remove Some of the Charges

The surest way to avoid closing costs is to negotiate with your lender to remove those costs from your loan package.

Your lender may not be willing to reduce your mortgage interest rate, but they might be able to waive charges for the following services:

• application fees
• initial credit report fee
• loan processing charges
• convenience fees for online payments
• underwriting charges
• loan lock fees
• courier fees
• wire transfer charges
• administrative fees

You’ll receive a detailed loan estimate that outlines your closing costs. This good faith loan estimate (GFE) will list fees that might potentially be waived.

Review the GFE with your lending agent and ask to remove the arbitrary charges listed on your printed estimate.

Selecting No Junk Fee Services 

Research Ohio lenders, escrow offices, and title firms to make sure you are choosing ones that have a reputation of billing only for essential services.

Your real estate agent or loan broker may also have some recommendations for service providers that have clean billings without any junk fee charges.

Financing the Costs
After you’ve narrowed your real estate service providers to those charging only essential services, and you’ve negotiated your fees, you have one other option.

Your lender may allow you to roll the remainder of your closing costs into your mortgage. You’ll still be on the hook to pay them, but your charges will be spread out over the life of your loan.

You’ll pay interest on those rolled costs, but when interest rates are low, this option may be a financial benefit as opposed to using your cash to pay the charges at the transaction closing. 

Yes, absolutely. There are multiple Ohio first-time homebuyer assistance programs for people who meet program requirements and restrictions.

Statewide Programs

The Ohio Finance Agency (OHFA) offers a number of down payment assistance programs. 

Each one has specialized requirements to apply, including income limits and geographic restrictions on the type of property buyers can purchase.

OHFA Programs

• Grants for Grads
• Ohio Heroes
• Homebuyer Plus Program
• My Ohio Home
• FTHB Edge
• Next Home
• OHFA First-time Homebuyer

Regional Programs

• Welcome Home Program (Federal Home Loan Bank of Cincinnati)
• CHN Housing Partners in Cuyahoga County
• Communities First Program from the Port of Greater Cincinnati Development Authority
• Regional Ohio banks and credit unions may offer programs

Local Programs 

• American Dream Down Payment Initiative (ADD) from the City of Columbus
• Dayton Down Payment Assistance Program from the HomeOwnership Center and the City of Dayton

Lender Programs

• Local banks, savings and loans companies, and credit unions frequently offer specialized home buying programs for current customers
• Lenders offering FHA mortgages generally have lower interest rates on loans. FHA loan requirements in Ohio include smaller down payments and fewer closing costs. Additionally, there are FHA down payment assistance programs in Ohio. Learn more about how to apply for an FHA loan in Ohio.

The most expensive closing costs for Ohio buyers are the down payment and the fees and charges associated with the mortgage.

Down Payment

Your down payment is by far the largest part of your closing costs. Typical downs range from 3.5% of the sale price to buyers paying 20% to avoid any PMI (private mortgage insurance) insurance fees.

Your down may be a cash gift. In that case, you’ll need to bring a notarized letter from the grantor that states the money is a gift that doesn’t need to be repaid.

Ohio buyers who don’t have special down payment assistance will need to have cash to pay the earnest money deposit submitted with the property purchase offer. The seller may request a larger earnest amount to open the escrow.

If you’re paying cash for the home, you’ll either make a wire transfer to pay for the house, or you’ll need to have a check that meets the requirements of your buyer or escrow office, to close the transaction.

Loan Fees

Lender fees are the other major expense for the buyer. This list breaks down the individual charges billed to buyers from the time you apply for a mortgage until the day the transaction closes.

• Credit report charges. Borrowers will pay for a credit report when they apply for a mortgage and will be charged again for a second report when the sale is ready to close to ensure that the report hasn’t changed since the formal mortgage application. 
• Loan application fee
• Loan processing charges
• Loan underwriting fees
• Document creation charges
• Appraisal fee

Real estate brokerage fees typically are included in closing costs for sellers. But when buyers take responsibility for paying the commission for their own agent, they see that charge in their closing disclosure.

There are three types closing costs that are potentially deductible on your federal income taxes.

Some Ohio taxpayers might be able to write off some closing costs on state tax filings, but only when they use special mortgage programs or when they’re recognized under program guidelines as qualified buyers.

It's worth noting that tax regulations are subject to change. So the content below must not be taken as financial or tax advice. Consult a qualified tax professional before making any decisions.

Potential Federal Write-Offs

Filers of these federal potential closing costs write-offs must itemize the deductions by using Schedule A.

The standard deduction for your filing status may exceed what you’d be able to deduct by itemizing closing costs. A professional tax accountant can help you calculate your best filing options.

Prepaid Property Taxes

This deduction lumps all personal taxes paid to the state and localities with your property taxes. The total for all can’t exceed the annual cap.

The state and local tax deduction (SALT) is limited to $10,000 annually.

Mortgage Interest Points

A point is a percentage of your mortgage interest rate. When you pay cash to buy down (discount) a point, it reduces your effective interest rate by 0.25%.

If you meet the following conditions, you may be able to write off discount points purchased to buy down your mortgage rate when filing your federal income taxes.

• The home must be your primary residence.
• You must pay cash for the point(s). Some lenders will allow you to finance the points, but you’ll need to make sure that the extra finance fees and interest don’t offset your projected initial savings for the discount point.
• You must stay in the home to break even on the payment for the discount point.
• Your loan must permit buying discount points. A VA loan, for example, rarely permits the practice. 
• You meet the lender’s terms to participate in the discount.
• The point buy down must be stated on your loan settlement statement.
• You must pay for the discount point upfront. Buying a discount point after the sale transaction has closed doesn’t qualify.

Mortgage Interest

You might be able to write off the interest on your home mortgage on your federal income tax filing, but there is a cap on the amount and there are specific requirements to take the write-off.

Federal tax rules state you must:

• live in the home or use it as your personal-use, full-time residence. You also have the ability to deduct loan interest on one family vacation home.
• use the house as collateral for the mortgage.
• file by using the itemized deductions on Schedule A.
• limit your mortgage interest deductions to less than $750,000 for joint filers and up to $375,000 for married filers who file separately.

Potential Ohio State Write-Offs

First-time home buyers and honorably discharged veterans might qualify for a mortgage tax credit when filing Ohio state income taxes. These tax credits are capped at an annual $2,000 write-off.

Mortgage Tax Credit Basic: The MTC Basic allows an annual tax credit of 15% for homes purchased in non-targeted areas and 20% for those in targeted areas. There are other restrictions, including:

• The loan must be a fixed-rate mortgage
• The property must be a one-to-four residential unit
• The home price meets the maximum purchase price county limits
• Payment of program fees to OHFA
• The buyer must live in the home as a primary residence
• Income limits for all residents in the home
• Occupant borrowers and spouses must hold title to the property
• The buyer must be a first-time homebuyer, military veteran or buyer purchasing a home in designated program targeted area census tracts.

Mortgage Tax Credit Plus: The MTC Plus program requires the same basic restrictions as MTC Basic, with the important restriction that the mortgage must be an Ohio Finance Agency (OHFA) loan offered by participating local lenders.

Borrowers in the Plus program might have as much as a 40% state tax credit.

The fees for the MTC Plus program include a lower basic fee, but also a 1% origination fee, a tax service charge, administration fees, and a funding assessment.

Your lender might allow you to roll your closing costs into your conventional mortgage when buying a home in Ohio, but it’s not universally guaranteed that you can do this.

Some lenders and grant assistance programs allow you to roll some of your closing costs into your mortgage, but they mandate that you pay a set amount in cash as a good faith commitment to follow the program guidelines and meet the requirements.