Maine Mortgage Rates: Maine Mortgage Interest Rates Low and Steady
March 1, 2011 (FreeRateUpdate.com) – In recent news, home construction throughout the state of Maine has decreased, which added pressure on mortgage backed securities prices causing them to dip slightly. However, positive employment data predicting the addition of thousands of jobs throughout the state of Maine has helped to encourage homeownership and to decrease the rate of some types of mortgage interest rates in Maine. Overall, Maine mortgage interest rates have remained low this week.
A 30-year fixed rate conforming mortgage has a mortgage rate of 4.750 percent in Maine. A 15-year fixed rate conforming mortgage has a rate of 4.000 percent. In Maine a 5/1 adjustable rate mortgage has a mortgage rate of 3.250 percent. For well-qualified Maine borrowers with a positive credit background and a reliable source of income the best mortgage rates are available at only 0.7 to 1.0 origination points.
The FHA mortgage rates have also steadily maintained their low rates. The FHA mortgage rate is 4.500 percent for a Maine 30-year fixed FHA mortgage loan. The FHA mortgage rate is 4.000 percent for a Maine 15-year fixed rate FHA mortgage. An FHA 5/1 adjustable rate mortgage loan is currently at 3.625 percent. FHA mortgage loans are very popular mortgage lending options amongst Maine borrowers, especially for first-time home buyers. The primary reason is that FHA loans have more favorable loan terms than conforming mortgage loans. It is also important to remember that FHA-insured mortgage loans contain higher closing costs and additional fees that Maine borrowers are responsible for. Some of those additional expenses include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on.
Maine borrowers who are well-qualified are able to take advantage of the best mortgage interest rates available in the state. These borrowers will have a strong credit history with minimal missed and/or late payments. In order to qualify, Maine borrowers typically have a credit score of at least 580. Although, some mortgage lenders require credit scores upwards of 620. Other requirements are reliable income sources, such as a stable employment history with an either consistent or increasing salary, and sufficient financial funds to pay for a down payment of at least 10 percent, which is usually verifiable through bank statements provided by the prospective Maine borrower. The Federal Housing Administration is also well known to have more lax qualifying guidelines on FHA-insured home mortgage loans. However, due to current economic circumstances, the Federal Housing Administration has more restrictive underwriting standards. Therefore, in order to qualify for an FHA home mortgage loan closely resembles the qualifying standards of conforming mortgage loans.
Jumbo mortgage rates in Maine have also remained low this week. A 30-year Maine jumbo mortgage has a mortgage interest rate of 5.375 percent. A 15-year Maine jumbo mortgage has a mortgage interest rate of 5.250 percent. For a Maine 5/1 adjustable rate jumbo mortgage, the jumbo mortgage interest rate is 3.875 percent. For a single family residence, the national conforming loan limit is $417,000 throughout most of the continental U.S and $729,750 for “high-cost” areas, such as Washington D.C. and New York. Hence, for a majority of the counties in Maine the conforming loan limit is $417,000.
Due to a dip in home construction throughout the state of Maine, the mortgage market had experienced a slight increase in mortgage rates. Also, mortgage backed securities and mortgage interest rates have an inverse relationship, meaning they move in different directions. Therefore, if the prices of mortgage backed securities fall, then Maine mortgage interest rates will go up. As MBS prices decreased slightly and due to better than expected economic reports, Maine mortgage rates are not expected to decrease in the near future and are relatively low and stable.
