Based on current median home prices in Portland, OR (around $543,308), and the current mortgage rate of 5.5%, the average monthly payment on a 30-year mortgage in Portland was approximately $2,466 as of May 2023.
How much can you expect to pay in mortgage payments in Portland OR in 2023? Of course, there are several variables that can affect a homeowner’s monthly payments. Your monthly payment could be quite different from this figure.
Average Monthly Mortgage Payment in Portland, Oregon in 2023
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 downward trend over the past year. As of the first week of May 2023, the rate on a 30-year fixed-rate mortgage was 5.5%,
Home values in Portland, OR have also decreased over the past year. In fact, prices in the city are -5.7% lower today than they were a year ago.
How to Estimate Mortgage Payments in Portland
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 on mortgage payments by examining: (A) current home prices in Portland, and (B) average mortgage rates.
By plugging these numbers into a standard amortization calculator, we can find an accurate estimate of the monthly mortgage payments for a 30-year fixed rate mortgage in Portland, OR..
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 — The median home price in Portland is currently about $543,308, as of May 2023. Varying sources offer slightly different numbers, but this will suffice for calculating the average mortgage payment for Portland, OR.
- Mortgage rates — The average rate for a 30-year fixed-rate home loan is currently 5.5%. 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 — The average down payment amount among home buyers is 14%. If we apply this percentage to the median home price mentioned above ($543,308), we arrive at a down payment of $108,600.
- Loan amount — By subtracting the down payment of $108,600 from the median home price of $543,308, we get a base loan amount of $434,400. 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 $434,400 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 5.5%, giving us a monthly payment of $2,466.
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 monthly mortgage payments in Portland OR, in 2023.
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.
Why Choose Sammamish Mortgage?
At Sammamish Mortgage, our loan officers can help you choose the right loan product and keep your mortgage payment in Portland, OR, within your budget
Sammamish Mortgage has been in business since 1992, and has assisted many homebuyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, we can help you get preapproved. Sammamish Mortgage offers mortgage programs in Colorado, Idaho, Oregon, and Washington, including our Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans.
Contact a loan officer if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.