Getting the Best Mortgage Rates in Maine (10-15-30-Year Fixed, 5/1, 7/1 ARM)
At $18,850, the median down payment on a new home is currently at its highest since 2014, according to World Property Journal.
With rising down payment costs, finding an affordable and manageable mortgage rate in Maine is becoming even more important for new homeowners.
For those planning on refinance or buying a home in Lewiston, Portland, Bangor, Brunswick, Auburn, or any other city in Maine, finding the best Maine mortgage rates is crucial.
It’s no secret that a Maine mortgage represents a long-term commitment. As such, having access to great the best mortgage rates in Maine can do wonders to set new homeowners up for financial success and stability down the road.
Which Maine City Are You Located in?
When it comes to finding the best Maine mortgage rates and flexible Maine home loans, there are plenty of factors to consider. These include a borrower’s credit score, total down payment amount, assessed property value, and location.
For many Maine mortgage lenders in Portland, Bangor, Lewiston, Auburn, Sanford, Salem and other cities in Maine, property location will play a large role in what type of Maine mortgage rates are available.
This means that homes across the state could have varying mortgage rates based on the individual city, neighborhood, and the condition of the home itself.
While you are searching for the best mortgage rates in Maine, it may be worthwhile to check the rates for neighboring cities to explore other Maine mortgage rates that could potentially be more affordable over the long run.
See the table below for a list of some of the largest cities in the state offering a wide range of Maine mortgages.
|Top Maine Cities||Population (2010-2016)|
Key Requirements for Maine Home Loans
Before you apply for a Maine mortgage rate, you’ll want to complete the below list of requirements.
- Get your down payment ready (~20% of the loan amount)
- Maintain good to excellent credit
- Save some extra funds for your closing cost
- Maintain a low debt balance
- Demonstrate sufficient income
- Gather your financial documents
- Get a home appraisal on the home
You’ll also need to examine your options for Maine mortgages before choosing between the best mortgage rates in Maine or refinance rates in Maine for you.
This means comparing rates and terms for both a conventional Maine mortgage rate (10, 15, 20, or 30-year mortgage) and an adjustable Maine mortgage rate (5/1, 3/1, 7/1 ARM).
Factors that Influence Maine Mortgage Rates
Monthly payments on a Maine mortgage should not be higher than 28 percent of total monthly income, including related expenses like principal, interest, taxes, insurance, and even HOA fees.
While Maine mortgage terms will play a role in determining monthly costs, your Maine mortgage rate will be the biggest factor in whether your monthly payments are affordable.
See the sections below for common elements that can impact your mortgage rate in Maine.
Bar Harbor, Maine
Just like any other loan, a borrower’s credit score is used as a benchmark for reliability. Maine mortgage lenders see high credit scores as proof of reliability, offering lower Maine mortgage rates as a result.
Lower credit scores are problematic for lenders, as it raises doubts on whether a borrower can financially manage a mortgage rate in Maine.
While exploring mortgage rates in Maine, take the time to examine your credit score. Look for ways to boost your score through paying off any old debts or resolving errors before committing to a mortgage rate in Maine.
For some Maine mortgage lenders, the location of your home could make a difference in Maine mortgage rates.
Mortgage rates in Maine may differ when purchasing in an urban vs. a rural area, so make sure that you take note of the location while evaluating Maine mortgage rates.
Putting aside more money for a down payment certainly isn’t fun, but it’s a great way to boost your chances of getting a lower Maine mortgage rate. According to Bankrate, most lenders require a payment of at least 3 percent.
Although some mortgage rates in Maine will still be affordable with a lower down payment, the best way to keep a Maine mortgage cost-effective over time is to put 20 percent down.
Conclusion – Finding the Best Mortgage Rates in Maine
When searching for the best Maine mortgage rate for you, there are a few additional pieces of information to keep in mind.
If you have a good, great, or excellent credit history and you are seeking a Maine mortgage rate for a loan totaling over $424,100, some lenders may be able to provide different terms and a different mortgage rate in Maine.
For this reason, it’s important to confirm any Maine mortgage rates and terms for specific amounts before making a commitment.
Additionally, it’s also important to keep in mind that the APR and payment information does not include state-specific taxes or required insurance premiums. As such, you should expect that the total cost of a Maine mortgage will be greater once taxes and insurance products are added.
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