Current Mortgage Rates in Oregon

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Contributor, Benzinga
October 22, 2021
Loan TypeRateAPR
30-year fixed 6.652% 6.731%
15-year fixed 6.077% 6.206%
7/1 ARM (adjustable rate) 7.116% 7.716%
5/1 ARM (adjustable rate) 7.177% 7.885%
Rates based on an average home price of $361,970 and a down payment of 20%.
See more mortgage rates on Zillow

Oregon offers beautiful Pacific coast views and abundant options for rural and urban living. Are you planning to refinance or purchase a home? It helps to familiarize yourself with the current mortgage rates Oregon has to offer. 

Best Mortgage Lenders in Oregon

We’ve researched a plethora of Oregon lenders to bring you the best options. 

What is a Mortgage Rate?

A mortgage rate is the interest rate your lender sets for your mortgage. Some mortgages have the same interest rate for the entire time you pay on the mortgage. Other mortgages have interest rates that change on a schedule that your lender determines. 

Part of your monthly mortgage payment goes toward your loan balance and another part pays your interest. You may also pay homeowners insurance and property taxes out of your monthly mortgage payment.

Each month, a little bit more of your payment goes toward your loan balance and a bit less goes toward interest. This process is called amortization. 

What Factors Impact Your Mortgage Rate?

The factors that impact your mortgage rate fall into 2 categories — factors that influence everyone’s interest rates and factors that impact that rate lenders specifically offer you. 

Factors that Impact Everyone

Economic factors impact interest rates across the board. Interest rates tend to increase when the stock market is doing well, the economy is stable and the unemployment rate is low. This is because more people can afford to buy homes, but there’s only so much funding available. More competition means higher interest rates. 

Interest rates tend to drop when the economy dips. Lower rates encourage people to buy or refinance their homes. 

Factors that Impact the Rate You’re Offered

You might receive a purchase quote that’s higher or lower than you might expect. This is due to your financial picture, including:

  • Your credit history: Your credit history includes your payment history, whether or not you’ve filed bankruptcy and whether you have any accounts in collections. 
  • Your income and debts: Lenders look at the relationship between your income and your debt. Ideally, your debt payments (including your mortgage payment) should be 43% or less of your gross income. Your gross income is your pre-tax income. Some lenders will allow up to 50% of your gross income to go to debt payments. This relationship is called your debt-to-income (DTI) ratio. 
  • Your savings: Lenders want to know that you have enough cash on hand to pay your closing costs and make a down payment.

Your mortgage type and term also impact your rate. A longer mortgage term typically has a higher interest rate, since it’s riskier for the lender to stretch out payments. 

What is a Mortgage Type?

You may notice different types of mortgages when you purchase or refinance quotes. The most common mortgage types include:

  • Conventional mortgages, which are not insured directly by the government. Some conventional mortgages are insured by Fannie Mae and Freddie Mac, which are government-sponsored entities, but not official government agencies like the FHA, USDA and VA. 
  • The Federal Housing Administration insures FHA mortgages. These mortgages have low minimum down payment requirements (3.5%). FHA mortgages also have low minimum credit score requirements. You need a credit score of 580 to make the minimum down payment. On the other hand, you need a credit score as low as 500 if you put at least 10% down. 
  • The United States Department of Agriculture (USDA) insures mortgages for people who buy homes in qualified rural areas. The USDA has maximum income requirements you’ll need to meet to qualify. Borrowers who use a USDA-backed mortgage may not have to make a down payment. 
  • The Veterans Administration (VA) insures mortgages for veterans and current service members. Surviving spouses of a veteran may also qualify. These loans do not require a down payment or require you to pay private mortgage insurance fees. 

Keep in mind that government agencies don’t directly offer government-insured mortgages. Private lenders offer these mortgages with approval from the respective government agency. Many lenders offer several types of mortgages, and an experienced loan officer can help you find the best mortgage companies and mortgage types for your situation. 

What is a Mortgage Term?

A mortgage term refers to how long your mortgage will be in place, assuming you make the required monthly payment and no extra payments. Here are some of the most common mortgage terms:

  • 30-year fixed: A 30-year fixed-rate mortgage means that if you make your required monthly payments, your mortgage will be paid off in 30 years. Fixed-rate means that the mortgage rate will remain the same for all 30 years. 
  • 15-year fixed: A 15-year fixed-rate mortgage will be paid off in 15 years, assuming you make the required monthly payments and no more. The interest rate stays the same for all 15 years. 
  • 5/1 ARM: A 5/1 ARM (adjustable-rate mortgage) is a mortgage that starts with a 5-year fixed-rate period. After that, the interest will adjust once per year. The term varies depending on the lender. Lenders may offer a 5/1 ARM as a 15-year mortgage, a 30-year mortgage or something else altogether. 

A 30-year fixed-rate mortgage will typically have a higher interest rate than a 15-year fixed-rate mortgage. A 5/1 ARM may have a lower interest rate than a 30-year fixed-rate mortgage during the initial period. 

Current Mortgage Rates in Oregon

Lenders change their mortgage rates as often as every day (or more than once per day). The changes might be small — even as little as 0.05%. These small changes can make a big difference over the life of your mortgage. At Benzinga, we update current mortgage rates frequently to reflect these changes. 

Loan TypeRateAPR
30-year fixed 6.652% 6.731%
15-year fixed 6.077% 6.206%
7/1 ARM (adjustable rate) 7.116% 7.716%
5/1 ARM (adjustable rate) 7.177% 7.885%
Rates based on an average home price of $361,970 and a down payment of 20%.
See more mortgage rates on Zillow

Calculating Interest in Oregon

Lenders calculate your interest on a monthly basis. As you make your monthly payments, your mortgage balance gets lower each month. You pay a little bit less in interest each month and more of your monthly payment goes toward your loan balance.

Here’s how much you pay in interest over the life of a 30-year fixed-rate mortgage in 4 Oregon cities. 

CityAverage Home ValueLoan TermCurrent RateDownpayment (20%)Monthly PaymentTotal Interest Paid
Portland $416,10030-year fixed6.606%$83,220$2,127.29$432,944.40
Salem $285,90030-year fixed6.606%$57,180$1,461.65$297,474.00
Eugene $317,50030-year fixed6.606%$63,500$1,623.20$330,352.00
Gresham $342,10030-year fixed6.606%$68,420$1,748.97$355,949.20
See more mortgage rates on Zillow

Lender Credit Score Minimums in Oregon

Your credit score is a 3-digit number that credit scoring companies develop based on your credit history. Scoring companies offer these scores to lenders to help them determine whether it’s risky to lend you money.

The higher your credit score is, the lower your interest rate will be. Lenders also establish a minimum credit score, and if your score is below the minimum, you may not be able to obtain a mortgage until you boost your score. 

LenderMinimum Credit Score Required
Rocket Mortgage®620

Final Thoughts on Oregon Mortgages

The mortgage process can be daunting if you’re a first time homebuyer. It can be a challenge to save up enough for a down payment and closing costs. Several Oregon organizations offer down payment assistance, which can help make the mortgage process more accessible.

These organizations may also offer educational programs to help demystify the mortgage process. 

Get Ready for Take Off

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You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.