How Much Will Your Mortgage Be in Oregon?
Lush forests, drier climates and breathtaking scenery make Oregon a beautiful and charming state to call home. Oregon, the Beaver State, is ranked the 9th most expensive in the housing market with home with locals spending 22% of their monthly income on their homes. Most of the population lives along the western side of the state in cities such as Portland, Eugene, Salem, Gresham, Hillsboro and Beaverton.
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Factors That Can Affect Your Oregon Mortgage Calculations
Home Prices in Oregon
Oregon is the 27th most populous state in the U.S., boasting over 4 million residents and climbing every year. According to data collected from Zillow in August 2019, the average home in Oregon costs $347 800 with a median list price of $389 000.
In the popular city of Portland the median cost for a home is $416 100 with a list price average of $469 0000. The state capital of Salem is a little more affordable with average list prices of $319 995 and closing sales of $285 900. South of Portland is Eugene, which is slightly more expensive than Salem. Median list prices for homes here are $349 900 with homes valued at a median rate of $317 500.
Property Taxes in Oregon
Oregon has some of the lowest property taxes in the country. There are several laws in place that put caps on tax rates and growth. Tax rates vary by county but the median rate for Oregon is 1.04% of the assessed fair market value. School district taxes are also included in the average effective property tax rate. They are capped at $5 per $1000 in market value.
A local assessor will assess the property annually to calculate your home's fair market value. Your tax rate will either apply to the market value or the maximum assessed value (MAV), depending on which amount is lower.
Furthermore, with over 100 exemption programs, homeowners in Oregon may also be eligible for a property tax exemption.
Oregon Job Stats to Consider
Oregon has seen a steady GDP growth over the years ranging from 3% to 10% annually predominantly as a result of goods manufacturing.
There are two Fortune 500 companies on the 2019 list: Nike and Lithia. Walmart, Intel, Oregon Health and Science University, Fred Meyer, and Providence Health System are some of the largest employers in the state.
The median personal income for Oregon is $50 843, slightly less than the national average of $54 420, according to the U.S. Bureau of Economic Analysis. Unemployment sits at a rate of 4.1%, which is also higher than the country’s average of 3.7% according to information gathered by U.S. Bureau of Labor Statistics.
Depending on which tax bracket your personal income falls into, income tax is set at a rate of 5% and 9.90% for those making over $125 000. A benefit to living in Oregon is that there is no sales tax.
Job Stats (Civilian Labor Force, Employment, Unemployment)
Other Oregon Costs That Can Affect Oregon Mortgage Calculations
Homeowners Insurance in Oregon
Oregon is one of the cheapest states for homeowner’s insurance with an average of just $533 for an annual premium. The state attracts wildfires with 9% of all property at high risk. Earthquakes are also notorious in the state are not covered by most homeowner's insurance policies. A separate policy for earthquake insurance can be purchased at an additional cost.
In Oregon, you should expect to pay an additional 1.3% of your home’s value in closing costs. This is the state average and the final rate will depend on your home's location. These costs include expenses tied to mortgage taxes and transfer taxes.
Your mortgage lender may require you to make a one-time title insurance purchase to cover the amount of the loan. This is in order to protect your lender's interest in the event of any future disputes with your title.
Real Estate Transfer Tax
Real estate transfer tax is only paid in Washington County. While this is typically paid for by the seller, it also benefits the homebuyer who may one day sell their home. Residents of Washington county can expect to pay $1 for every $1000 on the purchase price of their home. The rest of the state does not require buyers or sellers to pay any transfer tax when exchanging properties.
While a home inspection in Oregon is not mandatory, it is highly recommended before final sale. This will help you to better determine the condition of your prospective home.
Home inspections average between $300 - $450 depending on the square footage of the home. Most general inspections cover structure, pipes, electrical, roof and basement and are carried out by a licensed inspector. For specific tests you will need to pay extra. These may include dry rot, water samples or well flow tests.