Mortgages and Mortgage Loan Rates in Maine
In Maine, the search for the lowest rate mortgage can be broken down into four steps. At each step of the process, LoanReduce.com has a tool to assist you.
Learning about types of mortgage loans, and developing realistic goals and expectations. Hundreds of articles and mortgage calculators can teach you everything you need to know.
Reviewing mortgage interest rates. Advertised lender rates on LoanReduce.com give you an idea of how rates are trending.
Locating and contacting suitable lenders.
Evaluating mortgage offers. Once you receive a rate lock or even a prequalification, you can revisit the mortgage calculators to fine-tune the numbers.
Once you’ve spent some time with the above material, you’ll be ready to make the best decisions as to which mortgage loan is right for you.
Maine fixed-rate mortgages
Many single-family homes are financed with a fixed-rate mortgage (FRM). FRMs have a locked-in interest rate and constant monthly payment. In comparison, an adjustable-rate mortgage (ARM) is subject to rate and payment changes over time. Amortization for a FRM can range from 10 years to 40 years, but the most common loan life is 30 years. You can save money on the interest rate and total interest costs by selecting the shortest amortization period that you can afford.
Saving on taxes with a Maine mortgage
Tax law entitles you to deduct the property taxes, the mortgage interest, and the loan points. Most of the items are treated the same for purchase mortgages and refinance mortgages, with the exception of loan points. Your mortgage interest and property taxes can always be deducted in the year that they are paid. The same holds true for loan points on a purchase mortgage. Points paid on a refinance mortgage, however, can’t be entirely deducted in the first year, but have to be amortized over the loan’s life.
Compare Maine mortgages
You might decide to pursue different loan types, to see which best fits your situation. Consider keeping yourself organized by reviewing your mortgage loan offers by loan type first. Frankly, it’s difficult to compare an FRM to an ARM, because the structures are so different. If you can’t decide which structure you prefer, select the best offer from each category and compare them with a mortgage calculator. Remember that the payment amount shouldn’t be the only relevant factor. A low payment on an ARM could mean that you aren’t paying down much in principal. Delayed principal pay down eventually leads to higher total interest costs and a slower build-up of equity.
The most reliable way to save money on your mortgage is to consult with several lenders. Start reviewing your options now in our Maine broker directory. You have your choice of property types in Maine-waterfront estates, Victorian homes, farmland, and more-and you also have your choice of low-rate mortgages and highly qualified lenders.