Average Closing Costs for Home Buyers in Oregon 2024

January 15, 2019
Last updated:
January 12, 2024
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Buying a home in Oregon costs more than just the mortgage itself, and closing costs also need to be paid. This article will outline a detailed list of these costs and how much you can expect to pay in closing costs when you purchase a home.

Buying a home in Oregon comes with several costs in addition to a mortgage. Not only will you need to make your mortgage payments as soon as you take possession of your new home, but certain closing costs will need to be paid upfront. As such, Oregon home buyers need to budget for these closing costs when they buy a new home anywhere in the state.

On average, home buyers in Oregon pay closing costs ranging from 2% to 5% of the purchase price. This is a ballpark figure. Many lenders will require that you apply for a loan before receiving a more precise estimate of closing costs; however, some lenders are more transparent with their available options.

Critical factors determining the closing costs you will pay include the loan program, credit scores, down payment, property type, and occupancy. As such, your closing costs could be on the lower or upper end of the cost spectrum, depending on your exact scenario. Find current rates and costs specific to your situation through the link below.

Live Oregon Mortgage Rates

Let’s look at the average closing costs paid by Oregon home buyers.

What’s Included Within My Closing Costs?

“Closing costs” is a collective term for the various fees and charges you’ll encounter when buying a home. Some of these fees come from the lender, and others come from third parties involved in the transaction, like home appraisers and title companies.

The closing costs you pay will depend on the kind of loan you’re using and other factors.

Typical closing costs for Oregon home buyers include:

  • Fees relating to credit report acquisition.
  • Mortgage origination fee for processing loan paperwork.
  • Attorney’s fees (in some cases).
  • Discount points can be used to secure a lower mortgage rate.
  • Home appraisal fees (though sometimes they’re paid in advance).
  • Property survey to verify property lines, rule out encroachment, etc.
  • Title search and title insurance cost to cover both the lender and the home buyer.
  • Private homeowners insurance (PMI) premium (if your down payment is less than 20%
  • Escrow deposit or Escrow Fee (in some cases) to cover the first two months’ property taxes.
  • Recording fee paid to the city or county for recording the new land records.
  • Underwriting fee, which covers the cost of evaluating the loan.

Related: Oregon mortgage loan options

Again, these are just some typical closing costs for Oregon home buyers. Depending on your situation, you might encounter additional closing cost items, not on this list, and some of these fees might not apply to your situation.

Average Home Buyer Closing Costs in Oregon

As mentioned at the start of this article, Oregon home buyer closing cost estimates tend to average between 2% and 5% of the purchase price. This gives you a general idea of how much you might pay when buying a home in Oregon.

If you’re buying a house that costs $200,000, your closing costs might fall between $4,000 and $10,000 (on average). That’s a wide range, so it’s not something you can use for planning purposes. That’s where the Loan Estimate comes into the picture.

Related: Home prices in Washington vs. Oregon

Soon after you apply for a mortgage loan, the lender will give you a document known as a Loan Estimate. This standardized, three-page document gives you important information about your loan and has recently replaced the Good Faith Estimate.

Your lender is required by law to provide this document so that you can get an accurate idea of the actual costs of your home purchase. Page 1 includes your loan amount, mortgage rate, estimated monthly payments, and closing cost estimate. Page 2 provides an itemized breakdown of the various expenses associated with your loan.

Discount Points and Lender Credits

Discount points – also called mortgage points – are fees paid directly to the lender when a real estate transaction closes in exchange for a lower interest rate. Many also call this tactic “buying down the rate.” With a lower interest rate, you can effectively lower your mortgage payments. One discount point costs 1% of the mortgage or $1,000 for every $100,000.

These factors can affect the amount paid at closing. For instance, consider the different scenarios below:

  • Borrower’ A’ might pay mortgage discount points in exchange for a lower interest rate.
  • Borrower’ B’ might avoid paying points to reduce the upfront costs.
  • Borrower’ C’ might forgo the discount points and opt for a slightly higher rate to get a lender credit to reduce closing costs further.

These choices could result in a difference of several thousand dollars in the amount these buyers pay to close their loans. Not only can borrowers get a reduced interest rate for buying discount points, but they may also be able to have these points tax-deducted, much like the interest paid with each mortgage payment.

It should be noted, however, that it can take a long time for the savings to accumulate. Your lender can do the calculations to show you how much you’ll save over the life of your home loan, which will differ depending on whether you go with a short- or long-term mortgage.

Disclaimer: This article includes average closing costs for home buyers in Oregon. It is based on surveys conducted by Bankrate, and other third-party data deemed reliable but not guaranteed. Your closing costs could differ from the above examples based on several factors.

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In Need of a Loan in Oregon?

Do you need mortgage financing to buy a home in Oregon? We can help. Sammamish Mortgage has been serving buyers across the Pacific Northwest since 1992. We serve all of Washington, Oregon, Idaho, and Colorado and offer many mortgage programs. Get in touch with Sammamish Mortgage today to get started.

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