Compare Current Mortgage Rates in Maine

Mortgage rates in Maine vary based on economic conditions and your unique financial situation.

Lenders look to the latest data and decisions from the Federal Reserve, including rate hikes or cuts, to inform the interest rates they set. Inflation can often spur the Fed to raise the federal funds rate, which often prompts Maine lenders to raise their rates as well to keep pace with the overall economic outlook.

“When the Federal Reserve adjusts the federal funds rate, short-term interest rates change for many types of loans (student loans, car loans, etc.),” said Michael Martirena, an adviser with real estate platform Compass. “The yield on the 10-year Treasury note and the bond market play a role in mortgage rates” as well, he said. “When bond yields rise, mortgage rates typically follow.”

Maine mortgage rates will also vary based on your credit history, down payment, loan amount and type, and location. The more financially favorable you appear to a lender, the better your chances of getting a lower rate.
 

Buyers shopping for a home in Maine may be eligible for first-time homebuyer mortgage programs and down payment assistance. Maine Housing, administered by the Maine State Housing Authority, offers special mortgage programs, as do individual Maine cities including Lewiston, Auburn, and Portland.

• Maine Housing First Home Loan Program: This is the state’s main first-time homebuyer program. To qualify, you must be a first-time buyer (meaning you’ve not owned a home in the last three years), have a minimum credit score of 640, and spend no more than 33% of your monthly income on a mortgage payment. Your income must be below the program’s income limits, which vary by household size and region. The income limit ranges from $97,900 to $126,800 for a household of two. This program is available for new and existing homes of one to four units, and condos and mobile homes qualify. The purchase price must be no higher than $515,800 for one-unit homes.
• Maine Housing First Generation Program: Designed for homebuyers who have never lived in a home owned by their parents or guardians, or who were in foster care, this program’s eligibility criteria are the same as the requirements for the First Home Loan Program: You must have a credit score of 640 or greater, meet your region’s income requirements, and select a home within the purchase price parameters.
• Maine Housing SaluteME and Salute Home Again: These programs were created for qualified veterans, active-duty military members, and their families. Borrowers receive a 0.50% rate discount, and you don’t have to be a first-time homebuyer to be eligible for low or no down payment and closing cost assistance. To qualify for this program, you must be an active-duty service member or have been honorably discharged.
• Advantage down payment and closing cost assistance: This program offers up to $5,000 toward closing costs if you take an approved homebuyer education class and contribute 1% of the purchase price.
• Purchase Plus Improvement (PPI) program: The PPI program provides one loan for both mortgage and home repair costs. To qualify, you’ll need to stay within Maine Housing purchase limits, and you or the contractor must begin work within 30 days of closing.
• Mobile Home Self-Insured option: Maine Housing offers mortgages up to $200,000 ($250,000 on owned land) for first-time homebuyers who want to buy a mobile home. You’ll need to put down at least 5% with this program; you can use down payment assistance, but you must contribute at least 3% of the home’s price from your own funds.
• City of Auburn Homebuyer Program: Buyers in Lewiston or Auburn may benefit from a homebuyer program designed to help low- and moderate-income buyers. The program is restricted to people with incomes of at least $25,000 and no more than 80% of the area’s median income, with no more than $15,000 in assets. You must put at least $1,000 of your own money toward the down payment.
• Bangor Homebuyer Assistance Program: Income-eligible buyers in Bangor, Maine, can apply for up to $10,000 in down payment assistance and closing cost assistance from the City of Bangor.
• Portland Voucher Homeownership: Low-income first-time homebuyers in Portland, Maine, who have been in the Portland Housing Authority Housing Choice Voucher program for at least one year may be eligible for this homeownership program, which redirects home assistance payments toward mortgage costs. 

If you want to get the best mortgage rate in Maine, there are a few different steps you can take:

• Improve your credit: Boosting your credit score can play a major role in lowering rates. To improve your credit, you should make all of your payments on time, pay down your existing debt, and review your credit report for errors.
• Stay within your budget: Know how much house you can afford, and stick to that price. Mortgage calculators are a great starting point.
• Take a “hoMEworks” class: HoMEworks is a buyer education program for Maine borrowers, with more than 100 classes offered each year. Aside from being required for anyone hoping to use Advantage down payment assistance, it’s also a hands-on way to learn more about the home-buying process so you can make informed decisions about your mortgage.
• Shop around: One of the most effective ways to get the best rate on a mortgage is to shop around. Get quotes from several lenders to see the rates, terms, and fees they offer.
• Compare loans: The type of loan you get matters, too. While rate shopping, make sure you review the different types of loans available to you, including government-backed mortgages and first-time homebuyer programs if you’re buying for the first time. Some loans have lower interest rates than others, and more lenient credit requirements, too.
• Get a mortgage pre-approval: Pre-approval will give you the details on a specific loan you could be eligible for in the form of a mortgage pre-approval letter. Not only will you see rates, terms, and fees, but you can also show your pre-approval letter to sellers to let them know you’re qualified to make the deal.

Maine homebuyers can choose from the following mortgage options:

Conventional

• Description: These loans aren’t backed by a government program.
• Credit score: Typically requires a 620 minimum credit score.
• Down payment: Typically need to put down at least 3%.
• Insurance: Private mortgage insurance (PMI) is generally required with down payments of less than 20%.

FHA

• Description: Mortgages backed by the U.S. Federal Housing Administration.
• Credit score: Available for scores as low as 500 with a 10% down payment, 580 if you put down 3.5%.
• Down payment: A 3.5% down payment is the minimum required.
• Insurance: These loans require upfront and monthly mortgage insurance premiums.

VA

• Description: Mortgages backed by the U.S. Department of Veterans Affairs.
• Credit score: No stated minimum credit score, although different lenders have their own requirements.
• Down payment: Available with as little as 0% down.
• Insurance: No mortgage insurance is required, but there is a loan funding fee of up to 2.15%.

USDA

• Description: Mortgages backed by the U.S. Department of Agriculture.
• Credit score: No stated minimum, but lenders generally require at least 640 for this loan type.
• Down payment: Available with as little as 0% down.
• Insurance: No mortgage insurance is required, but there is a guarantee fee assessed annually.

Jumbo

• Description: These loans allow you to borrow larger amounts than conventional mortgages, which are usually capped at $766,550 for single-unit properties.
• Credit score: You’ll usually need a credit score of 680 or higher.
• Down payment: Typically at least 10% down payment is required.
• Insurance: Expect to pay PMI if you put down less than 20%.