Environmentally-friendly, spoiled with mountains and coastlines to explore, and speckled with hundreds of breweries and coffee houses – it is safe to say Oregon is a great state to call home. While you have saved for a down payment and secured a mortgage to buy your slice of the Pacific Northwest, there is one more hurdle you will need to clear: paying for closing costs.
Closing costs are the final major expense you will need to pay on closing day. In a nutshell, they encompass all the administrative and legal services involved in purchasing your dream home. Think: lender, appraiser, home inspector, attorney, insurance provider, and the taxman as the key vendors helping you along the homebuying journey. Instead of paying each service provider individually, you will pay for these fees in one lump sum. All in, closing costs typically amount to about two to five percent of a home’s purchase price, paid for alongside the down payment. That is one expensive day for your bank account!
If you are buying a new home in Oregon, NewHomeSource has put together the following breakdown of what is generally included and how you can potentially lower these costs.
How Much are Closing Costs in Oregon?
Closing costs in Oregon run, on average, $3,862 for a home loan of $464,666, according to the National Association of Realtors. That price tag combined with taxes makes up 0.9 percent of the home’s price tag.
Oregon closing costs come in lower than three of the four states that it borders, Washington, Nevada, and California. Idaho is slightly lower.
But homebuyers in the Beaver State should expect to spend far more than these estimates. This data excluded two major expenses – loan origination fees if you need a mortgage, and private mortgage insurance – or PMI, which homebuyers must take out if their down payment is less than 20 percent. Both expenses can add thousands to closing costs.
A competitive market has seen home prices on the rise. According to Bankrate.com, the median single-family price of a home in Oregon is $521,500 in February 2025.
Keep in mind, though, that closing costs will fluctuate greatly depending on a handful of factors, such as the price and location of the home, down payment, credit score, and type of mortgage.
What Is Typically Included in Oregon’s Closing Costs?
Each state has its own set of rules when it comes to real estate closings, from hiring an attorney to paying for real estate transfer taxes. And with so many moving parts, it is easier to group your expenses into three fee categories.
Here's what to expect in Oregon:
Mortgage-Related Fees
Getting a mortgage comes at a cost. Here’s a closer look at the fees you will incur for setting up a loan, including the protocol for hiring an attorney:
Loan Origination Fees
Loan origination fees of about 0.5 percent to one percent of your total loan are the first closing cost expenses you will incur. Your lender will charge these fees for all the administrative work involved in setting up your loan. This includes preparing your application, conducting an underwrite, producing pre-approval letters for your house hunting and processing your funding.
Credit Report Fees
Whenever you apply to borrow money, whether it is a mortgage, vehicle or personal loan, your lender will pull your credit history to see how you’ve managed previous debts. Expect the lender to pass along this expense to you. If more than one borrower is on the loan application, double this cost.
Private Mortgage Insurance
If you are not providing a 20 percent down payment, your lender will expect you to buy private mortgage insurance. This allows borrowers to qualify for a conventional loan even if they put down only five to 19.99 percent. While you are paying for the insurance, the coverage is for your lender in case of default.
PMI typically ranges from 0.25 percent to 2.25 percent of your loan. Once you hit the 20 percent mark in home equity, you do not have to pay for PMI.
Attorney Fees
While having an attorney on board to help with the entire closing process is mandatory in some states, Oregon does not follow this rule. You may still decide to hire a real estate attorney, especially if your home purchase is a complex one.
You can count on your attorney to help with drafting your purchase agreement and contract of sale, examining your mortgage contract and title search results, and reviewing your home insurance and title insurance policies.
Escrow Fees
In Oregon, real estate closings are handled by title companies and escrow agents who will guide you through each step of the process.
One of the key things your title company will do is set up an escrow account, which is a neutral third-party account to hold onto your funds, such as your earnest money deposit. Basically, your seller (and the various vendors you have hired to help with your purchase) will not receive any funds until both parties have met all their conditions on the home sale, and the ink is dry on the property transfer. Instead, your title company will hold all cash in an escrow account.
On closing day, it is your title company will meet with you and your seller to sign off on the final bits of paperwork and hand over the keys.
In Oregon, this is typically an expense that’s split down the middle between buyer and seller.
Property-Related Fees
You need to make sure you are trading away your life’s savings for a worthy investment. These are the common property-related fees you will see on your closing costs tab:
Title Search and Title Insurance
Whether you are buying a brand-new home or a resale property, homebuyers must pay for a title examination to ensure they’re buying property that’s free of ownership disputes, unpaid taxes, judgments, or outstanding lawsuits.
During a title search, an examiner scrutinizes historical records, such as deeds, court records and property and name indexes. This step is crucial – the last thing you want to do is to purchase a home fraught with legal issues!
Once the title search is complete, you will need to buy an owner’s title insurance policy for yourself and a lender’s title insurance policy for your lender. This insurance is a one-time expense that remains in effect until you sell your property and protects both parties in case of “defects in title.” It will cover all court costs and related fees should something go awry.
In Oregon, sellers typically pay for the title insurance policy while buyers pay for their lender’s policy.
Real Estate Transfer Tax
Whenever real estate changes hands, buyers and sellers need to account for a transfer tax during closing. They could also be listed as a deed tax or stamp tax.
Fortunately, only Washington County levies this tax in the Beaver State. It is set at $1 for every $1,000 of property value that exceeds $13,999. This is great news for the rest of the state – you will save thousands, which you can use towards other expenses.
Property Appraisal
The property appraisal is a make-or-break step in your homebuying journey, as your lender needs to verify that your potential new home is priced at the right market value. If you default on your loan, they need to know they can resell the home and recoup their losses.
The lender will send a third-party appraiser to the property to scan the home, its size, features, and condition. They will also compare how the property stacks up next to similarly priced homes in the neighborhood.
Ask your lender how much you should expect to pay for the appraisal.
Property Inspection
Hiring a home inspector is worth every penny. While an appraiser zeroes in on the property’s market value, an inspector’s job is to check on the home’s condition inside and out, from the roof to the foundation, to the appliances, drainage systems, and heating and ventilation.
Pay attention to their feedback. Your inspector will flag key issues with the home, including ones you may inherit in the years to come as a homeowner. You can take this intel back to the seller to negotiate on repairs or price adjustments before finalizing the deal.
Annual Fees
From managing your mortgage to staying on top of utility bills, and seasonal maintenance, making a house your home takes work! Your closing costs will include a handful of fees that you will need to start paying annually:
Property Taxes
In Oregon, homeowners pay about 0.77 percent of their home’s assessed market value in property taxes, according to the Tax Foundation. These tax rates vary per county.
Property taxes are a prepaid expense, meaning they need to be paid at closing and can’t be rolled into your mortgage. As part of your closing costs, you will need to pay for the first six to 12 months.
Homeowner’s Insurance
Before your lender issues your loan, you will need to buy a homeowner’s insurance policy that’s in effect at closing and will cover the first year. Homeowner’s insurance is mandatory. It will cover any physical damage to your home caused by fire, wind, vandalism, or theft.
Homeowner’s Association
Nearly 13 percent of homeowners in Oregon belong to a homeowner’s association (HOA). Based on these stats, there is a chance you will be on the hook for this expense.
HOA fees typically cover the cost of community amenities, such as fitness centers, pools, and community parks. They also may cover expenses to keep your neighborhood running, from trash removal to security.
How Can I Lower My Closing Costs in Oregon?
If the sticker shock is setting in, do not panic. There are a handful of ways homebuyers can lower their overall closing costs. Here is a look at key strategies that could save you thousands:
Closing Cost Assistance
Take advantage of Oregon’s homeownership assistance programs as it could put a significant dent in your closing costs.
Start your research with the Oregon Housing and Community Services Department, which offers a few programs to help income-eligible first-time homebuyers. There are also local programs from Bend-Richmond to Douglas County, Eugene, and Portland.
The Oregon Realtors Association also provides a list of down payment and closing cost assistance programs by county.
Get Your Finances in Shape
Get your credit score as high as you can before shopping for a home loan. With a perfect credit score in tow, you will be able to secure a lower interest rate and competitive terms for your loan. This move could save you thousands over the lifetime of your mortgage.
Apply as much as you can toward your down payment, too. The closer you get to the 20 percent threshold, the less you will have to pay in PMI.
Comparison Shop
While some closing cost fees are fixed, such as the appraisal and property taxes, you can shop around for some services, such as your lender, home inspector, and title company.
Take time to compare vendors, ensuring they’re appropriately accredited with glowing reviews from previous customers. With a shortlist in hand, ask for quotes so you can make sure you are getting the best deal.
Negotiate Lender Fees
If you have a longstanding, established relationship with your lender, you may have some wiggle room with loan setup fees.
You could ask your lender to omit certain expenses from your bill, such as rate lock fees, loan processing fees or broker rebates. If that does not work, you could also ask to stagger these expenses, so they’re paid in stages instead of all at once at closing.
Seller Concessions
Do not shy away from negotiating with your seller on who pays for which closing cost expense, especially if you are in a buyer’s market.
Try to reassign some of the costs. For example, you can submit a full-price offer with a caveat that the seller must pick up all your closing costs. If you are building a new home, you could ask the builder to cover your closing costs in exchange for paying for a handful of pricy upgrades.
No-Closing-Cost Mortgages
With a “no-closing-cost” mortgage, your lender agrees to pay for part or all your closing costs, but you must pay a higher interest rate.
Be careful with this option: It could cost you more money overall because of the bump in your interest rate.
Add Closing Costs to Your Home Financing
Aside from the prepaid expenses that must be paid at closing, you could opt to roll your closing costs into your home loan. This could add thousands to your mortgage. You will not have to pay for closing costs on closing day, but your monthly mortgage payments will be a bit higher.
Carmen Chai
Carmen Chai is an award-winning Canadian journalist who has lived and reported from major cities such as Vancouver, Toronto, London and Paris. For NewHomeSource, Carmen covers a variety of topics, including insurance, mortgages, and more.