Maine is situated in the far north eastern portion of the United States. The state is well-known for its lobster. Maine is also known for its gorgeous landscapes, stunning lighthouses, and incredible beaches. The capital of Maine is Augusta, and the largest city is Portland. The state consists of 13 counties, about 6000 lakes or ponds, and more than 17 million acres of forest land, People who live in the state enjoy delicious breweries, relaxing islands, and interesting wildlife. Maine also contains beautiful homes. Most people in the state who purchase new homes will need mortgages. If you need a mortgage, you need to be aware of the lending laws in the state and the rates, so you will know what to expect when applying for a mortgage.
Maine Mortgage Loan Laws
To protect you as a consumer, Main has established laws that lenders must follow. Some of the laws include:
- Truth in Lending Laws: The lender must provide you with a Truth in Lending Statement. This written document should include the amount of the loan, the annual percentage rate, amount financed, total number of payments, and total sales price. If you are not satisfied with the loan, you have 3 days to back out.
- No discrimination: Lenders cannot discriminate against you because of race, religion, gender, or sexual orientation. They cannot charge you higher interest rates because they disagree with your lifestyle or heritage.
- Good faith estimate: Lenders must present you with a good faith estimate. This document is designed you to prevent you from paying too much on the loan. This is an estimate of what the total cost of the loan will be, including the closing cost.
- New Homeowner’s Protection Act: When you pay down your mortgage to less than 20% of the value of your home, you have the option to cancel the private mortgage insurance if you wish.
- Licensing: All lenders that lend in the state of Maine must obtain a license to lend from the state.
Maine Mortgage Loan Rates
http://www.bankrate.com/maine/mortgage-rates.aspx states that the average mortgage rates in Maine will run at 4.21% for a 30-year fixed rate loan. You can get a lower rate if you choose a 15- year fixed rate loan. That rate is 3.30%. If you prefer an adjustable rate mortgage, the loan rate will be 3.27% for a 5/1 ARM. You might also wish to refinance your mortgage. The refinance rate for a 30-year fixed rate loan will be 4.24%. A 15-year refinance loan stands at 3.33%, and a 7/1 ARM refinance will be 3.68%, Loan rates remain constant throughout the state.
Maine Mortgage Loan Outlook
Rates in Maine have increased slightly within the last year. Certain events in the country can affect the market, such as the Presidential election. Experts state that it is hard to predict what the market will look like within the next year. The consensus is that loan rates will increase a little within the next few months. It is predicted that median home prices will increase in Maine, and home sales will increase. More people will have access to mortgages within the next year.
Types of Mortgages in Maine
Here are a few loan options available to the residents of Maine:
- Fixed rate loans: The rate throughout the life of the loan will not change. Lenders will usually offer loans in terms of 10, 15, or 30 years.
- Adjustable rate mortgages: The interest rate could change throughout the life of the loan. Lenders will offer an initial period. After that time, the rate will fluctuate according to the market.
- FHA loans: These loans are backed by the Federal Government, and they are offered to all individuals, especially first-time home-buyers. You can obtain a loan with a down-payment as low as 3.5%.
- VA loans: This loan is backed by the Federal Government and are available to military service members and retired service members. You can get a loan with no down-payment and no closing costs.
- Conventional loan: This loan is not insured by the Federal Government. You can get a conventional loan with a low down-payment amount.
- USDA loan: This loan is designed for people that do not have large incomes.