Compare Current Mortgage Rates in Oregon

When buying a home in Oregon, you’ll have many costs to consider, but the biggest impact on the overall cost of your home will be interest rates. Mortgage interest rates are a percentage of your loan amount that is paid to your lender in exchange for granting you the loan. Each month, you’ll need to pay this interest on top of the cost of your amortized home price.

In the Beaver State, mortgage lenders determine interest rates by examining your financial situation and weighing larger outside factors. Some economic considerations include: 

• The prime rate: The prime rate is a base rate that lenders set for themselves and use to inform the rates they charge borrowers. To determine their prime rate, many lenders turn to the Federal Reserve’s federal funds rate for reference. 
• Mortgage-backed bonds: The mortgage-backed bond market directly affects mortgage rates and can be a good indicator of how the market is behaving. When bond sales are low, mortgage rates tend to increase and when bond sales are high, mortgage rates tend to lower. 
• Competition: Increased competition in the housing market can drive interest rates higher. You’ll have the best chance at a low rate when the market isn’t competitive. 

When it comes to first-time buyer programs, Oregon has a few options:

• Oregon Bond residential loan: The Oregon Bond Residential Loan Program gives homebuyers in Oregon a pathway to affordable homeownership and low rates. Oregonians have two loan choices: a cash advantage option or a rate advantage option. With the cash advantage option, you’ll receive 3% of the loan amount to help cover closing costs, plus a competitive rate. The rate advantage option offers a competitive interest rate and a lower monthly payment. 
• Flex Lending program: The Flex Lending program helps low- to moderate-income Oregonians buy homes. It offers a fixed-rate mortgage loan and a silent second mortgage, which is forgivable, or an amortizing second lien that is payable. 
• Down payment assistance: Eligible homebuyers in Oregon can access down payment assistance from organizations throughout the state. To qualify, you’ll need to complete a homebuyer education course and financial counseling, as well as meet requirements set by the organization. 

Lenders tend to offer the best mortgage rates to borrowers who are financially trustworthy and able to demonstrate their ability to repay the loan. A loan savings calculator, such as the one from myFICO.com, will let you compare how your potential annual percentage rate (APR) changes related to your credit score. To get the best home loan rates in Oregon follow these steps:

• Improve your credit score: Lenders look at your credit score as a measure of how you handle debt. Those with high credit scores tend to have better money-management habits than those with low credit. To improve your score, pay down old debts, lower your credit balances, and dispute errors on your credit report.
• Lower your debt-to-income ratio (DTI): Your DTI lets lenders know how your debt compares to your income. If your DTI is high, focus on paying off your debts or increasing your income to offset your debt burden.
• Consider different loan programs: The loan program that you’re participating in might be helping or hurting your pursuit of the best interest rate. For instance, you might be able to easily qualify for a conventional loan, but you might get a better interest rate by applying for a USDA Rural Development loan or an FHA loan.
• Compare lenders: Lenders offer different mortgage rates, so you’ll want to shop around to ensure you get the best rate. Online comparison tools are a great way to compare multiple offers in one place without having to do all the work yourself.

If you live in Oregon, you have several mortgage options including the Oregon Bond Residential Loan Program. To choose the right home loan for your buying situation, you’ll want to carefully consider the requirements and limits of each type of loan. Here’s a comparison of mortgage loans available from Portland to Princeton: 

Oregon Bond Residential Loan Program

• Best for: Low- to moderate-income homebuyers
• Credit requirements: No minimum score
• Loan limits: Varies by county
• Down payment requirements: Not disclosed

Conventional loan

• Best for: Homebuyers with better credit
• Credit requirements: Varies by lender
• Loan limits: $766,550 in most counties
• Down payment requirements: 3%

FHA loan

• Best for: First-time homebuyers
• Credit requirements: 500 with a 10% down payment or 580 with a 3.5% down payment
• Loan limits: Varies by county
• Down payment requirements: 3.5%

VA loan

• Best for: Eligible veterans and military members
• Credit requirements: No minimum score requirement, you must show you can repay the loan
• Loan limits: $766,550 depending on the location of the property and local limits
• Down payment requirements: None

Jumbo loan

• Best for: Homebuyers buying homes above the Federal Housing Finance Agency (FHFA) limit
• Credit requirements: Varies by lender
• Loan limits: $766,550 or more, varies by location
• Down payment requirements: 10%