Maine Mortgage Rates

December 3, 2016 06:38 AM Eastern

Refinance rates now in Portland, ME [Change this]

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    Home Price (Purchase)
    When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
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    Home Value (Refinance)
    This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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    Down Payment
    The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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    Credit Score
    Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.
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Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

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Look here for mortgages in the Pine Tree state. Maine’s mortgage lenders are regulated by the Bureau of Consumer Credit Protection.

Maine Mortgage Rates

Maine mortgage rates may vary from those in other states. Different economic conditions and lending laws, as well as competition among lenders, can affect the home loan rates offered in every state.

Buying a Home in Maine

Maine home prices declined by just under 12% from an all-time high in the first quarter of 2008, and as of late 2012 they were not showing signs of recovery. Forecasters expect the Maine housing market to underperform the rest of the country through 2013.

The median price of a home in the Portland-South Portland-Biddeford metropolitan area is $217,000. With a median income of $76,400, home buyers in the Portland area can afford 84.5% of the houses for sale.

Closing costs are slightly higher than average. Maine’s closing costs of $2,408 rank it 22nd out of 50 states and the District of Columbia.

There are a number of programs in place to assist homebuyers with down payments, closing costs and other means of financing a home:

In addition to the programs listed, there are a number of community programs that provide assistance in individual towns.

FHA Mortgages

One of the biggest benefits of an FHA mortgage is that the down payment is as little as 3.5%. However, FHA mortgages do not enjoy as much popularity in Maine as they do in other parts of the country. The maximum amount of an FHA mortgage in the Portland-South Portland-Biddeford area is limited to $337,500. In Lincoln County that limit is $318,750. Knox County’s cap is $279,450 and in Hancock County it’s $272,500. All other counties are subject to an FHA loan limit of $271,050.

VA Mortgages

For those who are eligible for a VA loan, it can cover 100% of the home’s cost.  The VA does not cap mortgage amounts, although most lenders limit loans to four times the maximum VA guarantee, which varies by area. In Maine, that amount is $417,000.