Mortgage and Refinance Rates in Maine
Use our comparison table to compare refinance and mortgage rates in Maine
Today's Rates In Maine
Searching for the lowest Maine mortgage rates can be broken down into four steps. Here at MortgageLoan.com, we've got tools to assist you each step of the way.
- Learning about types of home loans, how they're priced and finding the right one for you. We've got hundreds of consumer-focused articles where you can learn everything you need to know, plus a collection of mortgage calculators to help you get a true picture of the costs and compare competing offers.
- Reviewing Maine mortgage interest rates. The table at the top of the page shows current mortgage rates in Maine for a variety of loan types, while our advertised lender rates give you an idea of what different lenders are offering.
- Locating and contacting suitable lenders. Check our list of mortgage lenders and brokers under our "Resources" section. Or even easier, use the forms at either the top or bottom of this page to get personalized quotes for Maine mortgage rates.
- Evaluating mortgage offers. Once you receive a rate lock or even a prequalification, you can revisit the mortgage calculators to fine-tune the numbers.
All of this has one purpose: to help you make the best decisions as to which mortgage loan and lender is right for you.
Here's some information about some of the most popular types of Maine home loans to help you get started.
Maine residents who are first-time homebuyers should give serious consideration to an FHA loan. The same is true for other borrowers with weaker credit or limited savings for a down payment. FHA loan requirements not only allow Maine borrowers to qualify for a mortgage with as little as a 3.5 percent down payment, but FHA mortgage rates also tend to be lower for borrowers with imperfect credit.
They're also easier to qualify for. Many lenders will approve FHA loans for Maine borrowers with credit scores as low as 600 and some will go even lower than that.
Most home loans in Maine and the rest of the country are what are known as conventional loans, the name used to describe mortgages backed by Fannie Mae or Freddie Mac. This are the standard mortgages offered through most lenders.
These home loans offer Maine borrowers with good credit certain advantages over FHA loans. The mortgage rates are competitive and the upfront costs are typically lower. It's also easier to eventually cancel the monthly mortgage insurance premium charged to borrowers who make less than a 20 percent down payment. Borrowers with excellent credit can make down payments of as little as 3 percent, though you'll get a lower rate with a larger down payment.
Home equity loans
Home equity loans are a special type of mortgage that allow you to borrow against the value of your home to obtain funds for various purposes. Home equity loan rates in Maine and elsewhere tend to be lower than rates on many other types of loans because they're secured by something of value – your home.
With a home equity loan, Maine borrowers have two options – a standard home equity loan or a home equity line of credit, or HELOC. A standard home equity loan is pretty simple – you borrow a sum of money and you pay it back. The loans can be either fixed- or adjustable rates, though fixed is more common.
A home equity line of credit works like a credit card. You're given a line of credit that you can borrow against as you wish, and as you pay back the loan you free up more of your line of credit that you can use again. Many HELOCs actually come with a charge card you can use to draw against them – except HELOC rates are much lower than what you'll usually pay on a credit card. HELOCs have a draw period, when you can borrow against them, which has an adjustable rate and is usually interest-only payments. They can often be converted to fixed-rates later on to repay the loan principle.
A mortgage refinance in Maine or anywhere else is actually pretty simple – you're just replacing your old mortgage with a new one. You just use the new mortgage to pay off your current one, and from then on you're paying the new lender instead.
There are a lot of reasons to refinance. The most common one is because you can get better a better refinance rate than you're paying on your current mortgage. There's not much difference between refinance rates and regular mortgage rates in Maine – as far as lenders are concerned, they're both home loans. But you may be able to get a better rate if current mortgage rates have dropped since you took out the loan, or if you're refinancing to a shorter term.
Maine homeowners can also use a mortgage refinance to borrow money like a home equity loan. With a cash-out refinance, you refinance your existing mortgage into a new one with a higher balance, and receive the difference in cash. This works best if you can reduce your mortgage rate at the same time or if you're borrowing a large sum and can get a better rate than you can with a regular home equity loan.
Fixed- vs. adjustable-rate mortgages
Many single-family homes are financed with a fixed-rate mortgage (FRM). FRMs have a locked-in interest rate that never changes and a constant monthly payment. Fixed-rate mortgages are usually set up to be amortized (repaid) over 30 years, but shorter options with lower rates are available as well. Fifteen-year mortgage rates can be half a percentage point or more lower than 30-year rates, and are a popular option for Maine borrowers who are refinancing home loans they've already had for a number of years.
In comparison, an adjustable-rate mortgage (ARM) is subject to rate and payment changes over time. This allows them to have lower initial rates than fixed-rate mortgages. On purchase/refinance loans, their rates are usually fixed for the first few years before they begin to readjust, which offers some predictability and makes them a good choice for borrowers who expect to move or refinance in a few years.