Mortgage Rates in Maine: You may have been searching and wondering which state has the best mortgage scheme so as to provide you with the opportunity of getting a good mortgage, you may have just reached the end of the search. I present to you ‘Maine mortgage’ with a unique wonderful rates.
First of all, what do you understand by ‘mortgage? A mortgage is a debt instrument, secured by the collateral of specified real estate property that the borrower is obliged to pay back with a predetermined set of payments.
It is important that you know that another name for mortgage is as ‘liens against property’ or ‘claims on property’. With a fixed-rate mortgage, the borrower pays the same interest rate for the life of the loan.
It may interest you to know that those who make use of mortgage are individuals and businesses. They use it to make large real estate purchases without paying the entire purchase price up front. Having known what a mortgage is, what is a mortgage rate?
What is the mortgage rate?
A mortgage rate refers to the rate of interest charged on a mortgage. Mortgage rates are determined by the lender and can be either fixed, staying the same for the term of the mortgage, or variable, fluctuating with a benchmark interest rate.
Also note that, mortgage rates vary for borrowers based on their credit profile. Mortgage rate averages also rise and fall with interest rate cycles and can drastically affect the home buyers’ market. Since we are looking at Maine mortgage, you may want to know where Maine is.
Where is Maine?
Maine is a northernmost state in the New England region of the northeastern United States (U.S). Maine is the 12th smallest by area, the 9th least populous, and the 13th least densely populated of the 50 United States.
As a state in the U.S., it is bordered by New Hampshire to the west, the Atlantic Ocean to the southeast, and the Canadian provinces of New Brunswick and Quebec to the northeast and northwest, respectively.
To have a better understanding of Maine’s mortgage rate, it is pertinent that we approach it through the current mortgage rate, conventional mortgage rate and the historical mortgage rate.
Current Mortgage Rates in Maine Compared to the National Rate
This mortgage rate would be understood through what type it is, its average and national rate percentage. Under the type we will be looking at the fixed year plan, under the average rate we will consider the percentage and same thing applies to the national rate.
In Maine, there are about six (6) types of mortgages; namely; the 30-year fixed type, the 15-year fixed type, the 30-year 5/1 ARM type, the 30-year 3/1 ARM type, the 30-year 7/1 ARM type and the 30-year 10/1 ARM type.
Their average rate goes thus; for the 30-year fixed type the average Maine rate is 4.35%, for the 15-year fixed type the average Maine rate is 3.48%, for the 30-year 5/1 ARM type the average Maine rate is 3.65%, for the 30-year 3/1 ARM type the average Maine rate is 4.13%.
More Mortgage Rates in Maines
Also, for the 30-year 7/1 ARM type the average Maine rate is 3.77%, and for the 30-year 10/1 ARM type the average Maine rate is 3.74%.
Comparing Maine’s rate to the national rate you will see that Maine’s is better. Just take a look at the national rate. For the national mortgage rate, the 30-year fixed type goes for 3.69%, the 15-year fixed type goes for 3.15%, the 30-year 5/1 ARM type goes for 3.35%, and the 30-year 3/1 ARM type, 30-year 7/1 ARM type and the 30-year 10/1 ARM type have nothing.
It is also believed that, to a large extent, in Maine, the current low for a 30-year mortgage rate can go as low as 3.38%. A 15-year mortgage can also go as low as 2.88%, while the best rate for a 5/1 ARM is 2.75%.
The difference in Mortgage Rate in Maines
While your personal credit score and financial history play a big part in determining the mortgage rate you are quoted, external factors can also move the needle.
In Maine, there is a difference of 287 basis points between the highest and lowest rates on a 30-year home loan. The resulting cost difference can be substantial especially for a loan of $200,000 with 20% down; you’d pay $99,847 less in interest at the best rate compared to the highest.
Where to Get Mortgage in Maine
In Maine, banks have traditionally been the most popular mortgage providers and other states, but their market share has fallen in recent years as tech-focused direct lenders have moved in.
It is important to look at rates from some of Maine’s biggest mortgage companies to see how they compare to the state average and each other before picking an option.
Maine’s local mortgage rate market is unusually diverse. While major lenders in other states match each other quite closely, you can see a range of rates at Maine’s top five banks. This suggests that Mainers see more benefit from rate shopping than homebuyers in other regions.
In a Nutshell
From the above, therefore, you can agree with me that no amount of shopping will compensate for poor credit or high debt. Taking care of your finances is a more effective way to find better mortgage rates than canvassing dozens of lenders.
With this information, you are more equipped with the option of why you should get you Mortgage from Maine.