Oregon is a Deed of Trust state. Deeds of Trust are a type of mortgage that includes a third party during the loan process. A lending institution issues a mortgage to a borrower and the title to a trustee. This trustee holds the title until the mortgage is paid. The mortgage loan is not different than a loan anywhere else. The two most common forms of mortgages in Oregon are the fixed rate mortgage in 15 or 30 year increments and the adjustable rate mortgage. The adjustable rate mortgages are most commonly a 5/25 loan with interest rates based on the LIBOR scale. VA, FHA and USDA loans are available within the state. Mortgage programs for first time home buyers can be backed by FHA, state programs of private lenders. Bad credit mortgages are available.
Oregon Mortgage Rates
Oregon’s mortgage rates are slightly higher than the national average. While interest rates are often based on home values, this is not the case in Oregon. Median home values are below national average, even though it is not by much. Mortgage rates will be based on the type of loan issued and the loan to value ratio. An adjustable rate loan will carry a lower interest rate, at first, than a fixed rate loan. A large down payment on the home will reduce your interest rate also. Credit score, employment and other financial information will all be used to determine your final interest rate. Some institutions will offer lower rates when mortgage insurance is purchased.
Oregon Refinance Rates
Refinancing rates in Oregon are very similar to their mortgage rates. While slightly higher than the national average, Oregon’s rates still remain quite low. Refinancing will depend on the property’s value and available equity. Credit qualifications will be required just like with a first mortgage. An appraisal of the property may e necessary. Refinancing to shorten the length of loan or to reduce interest without taking cash out of the property will have a better rate than if cash/value is removed.
Oregon Mortgage Brokers And Lenders
There are many different types of mortgage brokers in Oregon; small and corporate banks, credit unions, private finance companies and internet banking all issue mortgages within the state. Some lenders specialize in certain products, such as adjustable rate mortgages or first time home buyers; others offer a full line of prodcucts.