Point of Interest
Despite having some of the highest property taxes, Maine is an attractive homebuying proposition. With lower than average property prices and better than average current mortgage rates, Maine has something for every budget.
Use our mortgage calculator to find the right mortgage for your income.
|Term||Rate||Rate Last Week|
|30-year fixed jumbo||3.80%||3.89%|
It was a record-breaking year in 2019 for the Maine homebuying market, with sales up 1% over the previous 12 months and average house prices rising by more than 4%. Mortgage rates Maine residents paid were also exceptional as historically low-interest rates and unemployment put more residents in a position to buy a property.
Maine is an excellent choice for those looking to purchase or refinance a property from its wide-open spaces, low population density, strong rental market, and its popularity as a retirement living destination and tourism hub.
Getting a mortgage in Maine
Arranging a mortgage in Maine is much the same as going through the process anywhere else. You’ll be asked to prove that you have an income or some other means of paying back the loan. You’ll also need to demonstrate that your credit history shows that you are trustworthy with a sizeable loan.
One factor which sets Maine apart when it comes to getting a mortgage is the district’s higher than average closing costs (more on these later), which can often scupper homebuyers who have failed to take them into account.
Another selling point is Maine’s lower median home price, average 30-year fixed rate, and median monthly mortgage cost compared to the rest of the United States.
- Median home price: $184,500
- Average 30-year fixed rate: 3.79%
- Median monthly mortgage cost: $1,381
- Homeownership rate: 72.2%
Maine mortgage rate trends
Current mortgage rates Maine residents have seen are steadily falling since the massive spike in the early ’80s when the world was suffering its most significant recession since the post-war period.
Since then, there have been periodic yet smaller spikes in mortgage rates, but even subsequent recessions — such as the one caused by the global financial crisis — have failed to return current mortgage rates in Maine to those dizzying heights. On the whole, the trend has been for them to continually fall from the mid-80s to the present day, suggesting there has rarely been a better time to invest in property in this beautiful and tranquil state or look into refinance rates in Maine.
Maine current mortgage rates
Maine mortgage rates are currently in a good place and have been steadily falling week on week. Whether you are looking for a 30-year fixed rate for a new property purchase or are interested in Maine refinance rates for an existing property you are looking to squeeze a little cash out of, you’ll find highly competitive rates compared to national averages.
Currently, the 30-year fixed mortgage rate is 3.79%, down from 3.82% in previous weeks. A 30-year refinance is similar, with a 3.81% rate (down from 3.88%). Other rates include 3.22% for a 15-year fixed, 3.30% for a 5/1 ARM, and 3.80% for a 30-year fixed jumbo.
Not sure how much you can afford? Use a mortgage calculator to determine your monthly payments and find a price that will work for you. Remember to compare products across lenders to find the best package for you and check whether there are any extra fees or penalties should you want to pay your mortgage off faster than initially agreed upon.
Most and least expensive places to live in Maine
Maine is highly famous for tourism and retirement living alike — two factors that are notorious for driving up property prices. Depending on your budget, you’ll want to acquire a decent understanding of which areas come with the highest and lowest price tags.
- York County: The south-westernmost county in Maine, York is also the oldest county in the district and one of the oldest in the entire U.S.
- Cumberland County: With Portland as its seat, Cumberland is Maine’s most populous country. It’s also home to the enormous Sebago Lake, which supplies most of the county’s tap water.
- Sagadahoc County: Named after the Sagadahoc River — an early name for the Kennebec River — Sagadahoc is the smallest county in Maine by geographic area.
- Hancock County: Incorporated in 1789, Hancock was named after the first governor of Massachusetts and founding father, John Hancock.
- Lincoln County: Covering three-fifths of the state’s land upon founding, Lincoln had fewer than 13 other counties cut out of it as time went on.
- Aroostook County: Known for potato crops and Arcadian culture, Aroostook is the largest county by land east of the Mississippi River.
- Washington County: A tourism hotbed, Washington is home to many small seaside communities and has an economy based around small scale fishing and blueberry crops.
- Franklin County: The second least populous state in Maine, Franklin was established in 1838 and named after our famous founding father, Benjamin Franklin.
- Piscataquis County: One of only two counties in the northeast which meets the Jackson Turner requirements for frontier country — having fewer than six inhabitants per square mile.
- Somerset County: Named after the English county of the same name, Somerset has an economy mostly reliant on logging, paper milling, tourism, hunting, and fishing.
Maine mortgage resources and intricacies
The first thing you should be aware of before deciding whether to invest in property in Maine is that the property taxes are well above the national average, which may offset some of the Maine mortgage rate savings we’ve described above. The average Maine resident can expect to pay around $1,936 a year in property taxes.
The Maine mortgage application process is a fairly standard affair. However, several programs can help first-time buyers get educated on the entire process and make them eligible for specific grants. The Maine University Credit Union offers one such program.
The final word
Maine is a fantastic place to set up home and, providing you know how to shop around, can offer some great mortgage and refinance rates. Just make sure you’re not moving to an area outside your price range, consider your needs carefully, and you’ll be putting your feet up and enjoying that wonderful Maine lobster in no time.