Summary: Based on current median home prices, and the current mortgage rate of 3.51% in Portland, Oregon, the average monthly payment on a 30 year mortgage in Portland was approximately $1,758 as of January 2020. This article will outline how this number was obtained.
How much can you expect to pay in mortgage payments in Portland OR in 2020? Of course, there are several variables that can affect a homeowner’s monthly payments. Your monthly payment could be quite different from this figure. Contact us directly for a free personalized mortgage estimate of your Portland home purchase.
Average Monthly Mortgage Payment in Portland, Oregon in 2020
Mortgage rates are constantly fluctuating with the changing market. Variable factors such as mortgage bond markets and the Federal reserve are used to determine the daily rate. That said, mortgage rates have been on a declining trend over the past year. As of the last week of January 2020, the rate on a 30-year fixed-rate mortgage is 3.51%, compared to 4.46% the same time a year ago.
At the same time, home values in Portland, OR have been rather stable over the past year and haven’t really gone up or down much. In fact, prices in the city are only 0.6% higher today than they were a year ago. As a result, the average monthly mortgage payment in Portland is similar to where it was last year, and perhaps even lower thanks to the dip in interest rates.
Unfortunately, there is no official data source that tracks and records average mortgage payments (At least, not at the local level). However, we can get an accurate estimate by examining: (A) current home prices in Portland, and (B) average mortgage rates.
In the example below, we have used pricing information provided by residential real estate data giant Zillow, and the average mortgage rates reported by Freddie Mac. By plugging these numbers into a standard amortization calculator, we can find an accurate estimate of the average monthly payment for a 30-year fixed rate mortgage in Portland, Oregon.
This exercise is very helpful for home buyers because it clearly illustrates current market conditions and mortgage rate trends. Let’s take a look!
Here’s how it breaks down:
- Home prices — According to the real estate data provider Zillow, the median home price in Portland is about $454,600, as of January 2020. Varying sources offer slightly different numbers, but this will suffice for calculating the average mortgage payment for Portland, Oregon.
- Mortgage rates — According to the weekly market survey conducted by Freddie Mac, the average rate for a 30-year fixed-rate home loan was 3.51%, at the time of publication. The 30-year loan is the most popular financing option among Portland home buyers, so it’s the perfect number to determine the average monthly mortgage payment in the Portland metro area.
- Down payment — According to a nationwide analysis conducted by RealtyTrac, the average down payment amount among home buyers is 14%. If we apply this percentage to the median home price mentioned above ($454,600), we arrive at a down payment of $63,644.
- Loan amount — By subtracting the down payment of $63,644 from the median home price of $454,600, we get a base loan amount of $390,956. Now we have discovered the average mortgage loan amount among Portland home buyers. It is important to remember that not all buyer’s bring so much to the table. Statistics show that most first-time home buyers finance their purchase with 6% or less. If you apply the same calculations above to the home you are interested in, you can get a clearer picture of what your loan amount would be.
- Monthly payment — So, how much is the average monthly mortgage payment in Portland Oregon? Taking the loan amount of $390,956 we arrived at after subtracting the down payment from the purchase price; we then amortize (gradually reduce) the amount over 30 years with a mortgage rate of 3.51%, giving us a monthly payment of $1,758.
For the sake of simplicity, we’ve left out property taxes, and private mortgage insurance. Depending on the property value and the exact location, property taxes could add another $200 to $300 per month, or more. If a down payment of less than 20% is applied to the purchase of the home, private mortgage insurance may also have to be obtained adding additional monthly charges. However, by using this simple calculation you can get a general idea of the average monthly mortgage payment in Portland Oregon, in 2020.
Disclaimer: As you can see, there are many variables that determine the amount of a homeowner’s monthly mortgage payment, and we have only included a few here. Actual payments will vary based on the exact size and term of the loan. The mortgage rate, discount points paid at closing, and other factors, as well will determine the total monthly payment.
The goal of this article is to offer some basic insight into the average monthly mortgage payment in Portland. More importantly, this exercise illustrates how you might estimate your own monthly payments, and what factors can influence them.
Get an Estimate on Your Home Loan
Are you in the market for a mortgage loan? If so, we can give you a more specific quote based on your financial situation and the type of loan you need. We can also estimate how much your monthly payments will be, as well as your closing costs. Sammamish Mortgage has been serving borrowers across the Pacific Northwest for more than 20 years. We offer a variety of mortgage programs with flexible criteria and competitive rates. Please contact us with any financing questions you have, or to receive a rate quote.