Maine Mortgage Rates and Trends for Homebuyers

Maine mortgage rates can be a bit of a mystery, but understanding the trends and rates can help you make informed decisions as a homebuyer.

In Maine, the average 30-year fixed mortgage rate is around 3.75%, which is lower than the national average. This can be a great opportunity for homebuyers to get a good deal on a mortgage.

According to recent data, Maine's mortgage rates have been steadily decreasing over the past year, making it a great time to buy. This trend is expected to continue, with some experts predicting a further decrease in rates over the next 12 months.

As a homebuyer, it's essential to consider your financial situation and credit score when determining how much you can afford to borrow. A good credit score can help you qualify for lower interest rates and better loan terms.

Explore further: Average Refi Rates

Current mortgage rates in Maine have been trending downwards since peaking in October 2023, but still remain above 7 percent. As of February 3, 2025, the current mortgage interest rates in Maine are 7.00% for a 30-year fixed mortgage and 6.13% for a 15-year fixed mortgage.

See what others are reading: Mortgage Rates Have Ticked Back down to below 7

The average Maine rate for a fixed 30-year mortgage is 6.80% as of January 2025, according to Zillow. This is a significant rate, considering the affordability crunch homebuyers are facing in Maine due to higher home prices.

To put this into perspective, a 30-year fixed-rate mortgage in Maine can be a good option for buyers who plan to stay in their homes for the long term. With a 30-year fixed-rate mortgage, your monthly payments will remain constant for the duration of the loan.

Here's a quick look at the current rates in Maine:

Keep in mind that rates can fluctuate, and it's essential to compare rates and terms from several lenders to get the best deal.

You can qualify for a conventional mortgage in Maine with a minimum credit score of 620 and a debt-to-income ratio of no more than 45 percent.

FHA loans are a good option if you have a low credit score, requiring a minimum credit score of 580 and a down payment of at least 3.5 percent.

VA loans are exclusively for veterans or active-duty military members, offering no down payment and no mortgage insurance, but requiring a funding fee ranging from 1.25 percent to 3.30 percent.

Most loan options in Maine offer a choice between fixed and adjustable rates, with even a tenth of a point difference amounting to thousands of dollars over the life of the loan.

To qualify for a USDA loan, you must live in a rural location, meet income and property value caps, and be willing to accept no down payment.

If you're a qualified military service member, you may be eligible for a VA loan, which requires no down payment and no mortgage insurance, but does require a VA funding fee based on the value of the property.

Maine homebuyers can also consider HomeReady Loans, which offer down payments as low as 3 percent and a minimum FICO score of 620, with more favorable mortgage insurance requirements than FHA loans.

Here's a summary of the different mortgage options available in Maine:

Keep in mind that these are just some of the mortgage options available in Maine, and you should research each option thoroughly to determine which one best fits your needs.

Mortgage rates in Maine have been on a rollercoaster ride over the years. Recent mortgage rate highs in 2023 have dipped in 2024, but are still high compared to recent years.

The Fed has signaled interest rate cuts for 2024, which is a promising sign for homebuyers. However, these cuts are predicated on decreasing inflation, which remains to be seen.

Historically, Maine's mortgage rates have been influenced by the national rates. Let's take a look at the average mortgage rates in Maine and the US over the years.

The FHFA stopped reporting new data in 2018, so we can't see the current trends. However, it's clear that mortgage rates in Maine have fluctuated over the years, influenced by national rates and economic factors.

The current 30-Year Fixed Rate in Maine is 6.96% as of Monday, February 03, 2025 at 6:30 AM. This rate is slightly higher than the national average.

Broaden your view: Interest Rates Today Mortgage 30 Year Fixed Isa

Maine residents have a range of mortgage options to choose from, including the 15-Year Fixed Rate, which is currently 6.22%. This is a great option for those who want to pay off their mortgage quickly.

If you're considering a 5-1 ARM, the current interest rate in Maine is 6.27%. This type of loan can offer lower interest rates for a fixed period of time.

For those who are eligible, the 30-Year Fixed Rate FHA and 30-Year Fixed Rate VA are also available options. The current rates for these loans are 6.89% and 6.68% respectively.

Here's a quick summary of the current national mortgage rates:

These rates are subject to change, so be sure to check back often for the latest information.

Maine's housing market is poised for growth, with a population increase of 1.7 percent expected by 2030. The median home value in Maine is currently $377,025.

If you're considering buying a home in Maine, you'll want to know that the median days to pending is 25, as of January 2024. This means that homes are selling relatively quickly, so it's essential to be prepared.

Here are some key statistics about the housing market in Maine:

If you're a first-time homebuyer, you may be eligible for assistance programs like the Maine State Housing Authority's First Home Loan program, which can offer up to $5,000 for closing costs.

Explore further: U.s. Mortgage Rates Drop for First Time since March

Maine's housing market is a great place to explore, especially if you're looking to buy or sell a home. The median home value in Maine is a significant $377,025 as of February 2024, according to Zillow.

A home in Maine typically takes 25 days to go pending, which is a relatively quick turnaround time. This is based on data from Zillow as of January 2024.

If you're looking to buy a home in Maine, be prepared for some price drops. As of January 2024, 16.8% of homes in Maine have seen price drops, according to Redfin.

More than three-quarters of Maine residents own their own homes, with a homeownership rate of 74.1% as of December 2022, according to the Census Bureau.

Check this out: Refinance Mortgage Rates 2024

Getting a mortgage in Maine can be a bit challenging, but it's not impossible. In 2022, 61% of loan applications were funded, which is a respectable rate.

The average mortgage loan size in Maine is substantial, at $300,990, based on Home Mortgage Disclosure Act data from 2022.

Here's a breakdown of the key statistics:

The Maine State Housing Authority's First Home Loan program is a great resource for first-time homebuyers in Maine, offering up to $5,000 for closing costs.

This program can be a huge help in affording a home, especially when you're just starting out. The Purchase Plus Improvement option can also finance the purchase of a home and repairs with one loan, up to $35,000.

The programs are open to first-time homebuyers, but household income limits do apply.

For your interest: Mortgage Interest Rates First Time Buyer

Taxes can be a complex and overwhelming topic, but understanding the basics can make a big difference.

Maine charges transfer taxes on real estate transactions, which is $2.20 per $500, or 0.44%.

In Maine, the buyer and seller split the transfer tax fee.

If you itemize your deductions when filing your federal income taxes, you can also deduct the mortgage interest from your state income taxes.

You can deduct the mortgage interest from your state income taxes in Maine, following the same rules as the federal government.

Recommended read: Federal Reserve Mortgage Interest Rates

Maine has a thriving real estate market, with 39,717 home sales in 2022. The average home price in Maine is $380,374.

Getting pre-approved for a mortgage can help you determine what size mortgage you can afford, and the average Maine mortgage was $452,697, compared to the national average of $236,443.

There are 5,861 real estate agents in Maine, ready to help facilitate your home buying transaction. For homebuyers, especially first-time homebuyers, realtors can be a vital guide as you search for your new home.

The average real estate commission in Maine is 6%, translating to an average commission of $22,822 per transaction. This can be a significant consideration when calculating your all-in costs to buy a new home.

Take a look at this: New Day Mortgage Rates

Maine offers several programs to help first-time homebuyers get an affordable mortgage with a low or no down payment. MaineHousing, the state's housing finance authority, provides options such as the First Home Loan Program and the First Generation Program.

These programs offer low-interest, fixed-rate mortgages with low- or no-down-payment options. Household income limits apply, but most Maine residents don't exceed them. A minimum credit score of 640 is required for the First Home Loan Program.

MaineHousing also offers a rate discount of 0.5 percent for retired and active-duty military personnel on the 30-year First Home loan through the Salute ME and Salute Home Again programs.

Here are some additional low-down-payment loan options in Maine:

These programs are typically exclusive to groups who fit certain criteria, such as veterans or buyers with lower credit scores.

Homebuyer Assistance Programs can make a big difference in getting on the path to homeownership. MaineHousing offers a First Home Loan Program that provides low-interest, fixed-rate mortgages with low- or no-down-payment options.

Related reading: Firts Tme Home Byuers Low Mortgage Rates

If you're a first-time homebuyer or haven't owned a home in the past three years, you might qualify for this program. Household income limits apply, but most Maine residents don't exceed them. A minimum credit score of 640 is required.

Another program is the First Generation Program, which offers a low-interest fixed-rate mortgage, down payment and closing cost assistance. This is for individuals who and their parents or legal guardians have never owned a home.

MaineHousing also offers a rate discount of 0.5 percent for retired and active-duty military personnel on the 30-year First Home loan through the Salute ME and Salute Home Again programs.

Here are some key details about these programs:

These programs can be a great starting point for homebuyers in Maine. Don't forget to explore other options like FHA loans, VA loans, and USDA loans, which offer low-down-payment requirements and other benefits.

Recommended read: Mortgage Rates Bad Credit Home Loans

You can connect with a local loan officer in Maine through Morty, who works with expert loan officers to provide competitive rates and a delightful customer experience.

Having a local expert on your side can make a big difference in the homebuying process.

Expand your knowledge: Interest Rate for Housing Loan 2018