Most of the financial advice out there is focused on how you can pay off the mortgage on your home as quickly as possible, from making lump sum payments to switching to bi-weekly payments rather than monthly.
Summary: Based on current home prices in Portland, Oregon, and using average mortgage rates, the average monthly mortgage payment in Portland was approximately $1,479 as of February 2017.
Of course, there are several variables that can affect a homeowner’s monthly payments. So yours could be quite different from this average figure. Please contact us if you would like a more precise estimate on your Portland home loan.
Average Monthly Mortgage Payment in Portland, Oregon in 2017
Mortgage rates are higher today than they were a couple of months ago. Home prices in Portland, Oregon have also risen steadily in recent months. As a result, the average monthly mortgage payment in Portland is higher now than it was a year ago.
There are no official data sources that track and record average mortgage payments. At least, not at the city or metro level. But we can get a ballpark estimate by examining: (A) current home prices in Portland, and (B) average mortgage rates.
Below, we’ve used home price data provided by Zillow, and the average mortgage rates reported by Freddie Mac. Plugging these numbers into a standard amortization calculator gives us an estimate of the average monthly mortgage payment in Portland, Oregon.
This exercise is also helpful in the sense that it brings home buyers up to speed on current housing market conditions and mortgage rate trends. So let’s get to it.
Here’s how it breaks down:
- Home prices — According to the real estate data company Zillow, the median home price in Portland was around $403,560, as of February 2017. There are other sources that 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 4.15%, at the time of publication. The 30-year loan is the most popular financing option among Portland home buyers, so this is a good number to use for determining the average monthly mortgage payment in the area.
- Down payment — According to a nationwide analysis conducted by RealtyTrac, the average down payment amount among home buyer was 14%. If we apply this percentage to the median home price mentioned above ($403,560), we get a down payment of $49,560. Now we can figure out the amount being borrowed.
- Loan amount — By subtracting the down payment from the median home price, we get a base loan amount of around $354,000. This is close to the average mortgage loan amount among Portland home buyers, using the figures above.
- Monthly payment — So, how much is the average monthly mortgage payment in Portland, Oregon? If we take the $354,000 loan amount from earlier, and amortize it over 30 years with a mortgage rate of 4.15%, we end up with a monthly payment of $1,479.89.
For the sake of simplicity, we’ve left out property taxes. Depending on the property value and the exact location, property taxes could add another $200 to $300 per month, or more. But this simple calculation gives us a general idea of the average monthly mortgage payment in Portland, Oregon, in early 2017.
Big disclaimer: As you can see, there are many variables that determine the size of a homeowner’s monthly mortgage payment. And we haven’t included them all. Actual payments will vary based on the exact size of the loan, the length of the term, the mortgage rate, discount points paid at closing, and other factors.
The point here is to offer some basic insight into the average monthly mortgage payment in Portland. More importantly, this article shows 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 loan products with flexible criteria and competitive rates. Please contact us with any financing questions you have, or to receive a rate quote.