5 Mortgage Tips for First-Time Buyers in Oregon: Updated for 2022

Published:
December 14, 2018
Last updated:
August 12, 2022
In This Article

Are you a first-time homebuyer looking to buy in Oregon in 2021? If so, you’ll need some sound advice to ensure you make all the right moves. This guide will provide you with some excellent tips to help your first real estate transaction be a successful one.

Are you planning to buy you first home in Oregon during 2022? Do you need to use a mortgage loan to help finance your purchase? If so, you’ll find the following mortgage advice helpful. Here are five financing tips and strategies for first-time home buyers in Oregon. Download the Free Home Buyers Guide eBook Now!

Market Update: Home Prices Up, Interest Rates Rising

2022 started off with a bang. Home prices across Oregon have been steadily increasing over the past year. In fact, prices have been on a steady climb since 2012. According to Zillow, home prices in Oregon increased 26.5% over the past year.

According to the latest data, the median home price in Oregon rose to around $527,823 by August 2022. Price gains have been steady and healthy, and they are expected to be similar throughout 2022.

Housing inventory will continue to remain rather tight, particularly at the entry-level price level. This could lead to a dip in sales, and rising mortgage rates will start to slow buyer interest as affordability becomes an issue.

That said, single-family housing starts are expected to increase in Oregon in an effort to curb the tight inventory and meet increasing demand as millennials enter the market in higher numbers.

In Portland, for instance, there’s currently only about 2 months of homes for sale, which is much lower than what’s considered a balanced market at around 5 to 6-months of supply.

5 Mortgage Tips for First-Time Buyers

With that market update out of the way, let’s move on to the mortgage advice mentioned earlier. Here are five helpful tips for first-time buyers in Oregon, fully updated for 2022.

1. Get ahead of rising mortgage rates

According to Freddie Mac, the average rate for a 30-year fixed mortgage loan was 3.11% during the week of January 4, 2022. That’s a bit higher than the 2.67% it was at the same week in 2021. Experts anticipated rates hitting a high of around 4% by year’s end, but currently rates for a 30 year fixed mortgage are standing at 5.60% and inflation plus Federal hikes to the base rate may mean it will go higher still. 

2. Establish a basic budget before house hunting.

How much can you afford to put toward a monthly mortgage payment right now, based on your current income and monthly expenses? If you can’t answer this question, you’ve got a bit of homework to do.

Putting a budget on paper will help you ensure that you’re not taking on too much debt, with the addition of a mortgage. The good news is that you don’t have to be a financial planner or CPA to create a basic housing budget. Just take a look at your current monthly expenses, and subtract that amount from your monthly take-home pay.

Live Oregon Mortgage Rates

3. Explore low-down-payment mortgage options.

If you’re fortunate enough to have a large amount of money in the bank, you can probably skip over the section. But if you’re like many first-time home buyers in Oregon, you might not be able to come up with a large down payment on your purchase. And fortunately, you might not have to.

The average down payment among first-time home buyers in Oregon and nationwide has actually declined over the past few years, thanks to flexible mortgage programs that require less money up front. These days, both FHA and conventional loans offer relatively low down payments to qualified borrowers.

4. Consider using down payment gift money from relatives.

Did you know that a lot of mortgage programs allow borrowers to use gift money from family members for the down payment? It’s true. Both FHA and conventional loans allow for this kind of thing.

This is a great way for first-time buyers in Oregon to come up with the funds needed for the down payment on a purchase.

5. Keep an eye on home prices. They’re still rising in most areas.

Mortgage rates have been on a swift upward trend for several months now, as of early 2022. Analysts and forecasters expect more major rate hikes based on announcements from the Federal Reserve as the government fights to control inflation. 

Home prices, on the other hand, continue to rise in most parts of Oregon. And this is something first-time buyers should keep a close eye on, especially those who plan to buy later next year. Postponing your purchase until later in 2022 or beyond might mean paying a higher price.

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Interested in Applying For a Mortgage in Oregon?

Are you considering buying a home in Oregon sometime soon? If so, now is a great time to make the leap! When you’re ready, Sammamish Mortgage can help you secure the mortgage you need. We are a family-owned mortgage firm that serves the entire Pacific Northwest, including Washington, Oregon, Idaho, and Colorado, and have been offering many mortgage programs since 1992. Get in touch with Sammamish Mortgage today to apply for a mortgage or simply to have your questions answered!

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