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 prior to receiving a more precise estimate of closing costs; however, there are some lenders that are more transparent with their available options.
Key factors in determining the closing costs you will pay include the loan program, credit scores, down payment, property type and occupancy. Find current rates and costs specific to your situation through the link below.
Let’s take a closer look at the typical 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. Others come from third parties that are involved in the transaction, like home appraisers and title companies.
The types of closing costs you pay will depend on the kind of loan you’re using, as well as 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, which 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 insurance fees, to cover both the lender and the home buyer.
- Escrow deposit (in some cases) to cover 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.
Again, these are just some of the typical closing costs for Oregon home buyers. Depending on your situation, you might encounter additional costs that are not on this list. 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 costs 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.
So, 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 pretty wide range, so it’s not something you can use for planning purposes. That’s where the Loan Estimate comes into the picture.
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 a lot of important information about your loan. Page 1 includes your loan amount, mortgage rate, and estimated monthly payments, as well as an estimate of your total closing costs. Page 2 provides an itemized breakdown of the various costs associated with your loan.
Discount Points and Lender Credits
There are other factors that can affect the amount paid at closing. For instance, consider the different scenarios below:
- Borrower ‘A’ might decide to pay mortgage discount points in exchange for a lower interest rate.
- Borrower ‘B’ might avoid paying points in order to reduce the upfront costs.
- Borrower ‘C’ might forego the discount points and opt for a slightly higher rate, in order to get a lender credit to further reduce closing costs.
These choices could result in a difference of several thousand dollars in the amount these buyers pay to close their loans.
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, which are deemed reliable but not guaranteed. Your closing costs could differ from the examples provided above, based on a number of factors.