Maine Mortgage Calculator

Best mortgage lenders in Maine

The most popular mortgage lenders in Maine operate nationwide. These include such recognizable names as AmeriSave, Rocket Mortgage, Pentagon Federal Credit Union. Several lesser known but trustworthy options include Maine-based Maine Family FCU, Acadia Lending Group.

How to calculate mortgage payment in Maine

Use our fast and simple mortgage calculator ME to assess your upcoming monthly financial obligations. Detailed, step-by-step instructions are provided below for your convenience.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Maine for planning your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in Maine parameters.

The initial component to consider is the property's purchase price – in other words, the amount you intend to invest in your prospective home. A down payment constitutes the portion of this price that you need to provide upfront. To steer clear of expensive insurance premiums, it is advisable to come up with a minimum of 20% down payment (particularly for a conventional loan). The remaining sum constitutes the principal, which equates to 80% of the home price when a 20% down payment is made.

The loan term is the duration required for complete mortgage repayment through scheduled payments. Fixed-rate conforming loans generally have a maximum term of 30 years, while adjustable-rate alternatives usually come with shorter terms.

The interest rate is a fixed or variable fraction of the principal amount that you must pay over the course of the loan. It's worth noting that you are actually assessed an annual percentage rate (APR), commonly abbreviated as APR, which is not identical to the interest rate. While the interest rate comprises the majority of the APR value, the latter also encompasses various fees such as origination fees, closing costs, and insurance payments, among others.

For more precise assessment, the interest rate used for these calculations is based on the current mortgage rates in Maine, given a $400,000 home price and a 10% down payment.

Median property taxes in Maine counties

Property taxes are another crucial factor to take into account when choosing your future home. In many cases, lenders require the establishment of a mortgage escrow account to ensure that borrowers stay current with their tax and insurance expenses.

Source: American Communities Survey 2016, U.S. Census

Maine Housing Market 2024

Over the past year, there has been a significant rise in the housing market's value in Maine. This trend is an extension of a long-standing pattern that has been magnified by the COVID pandemic. However, the rate of growth has slowed compared to the previous year, while both purchase and refinance rates have been steadily rising for a while and are projected to increase further in the near future.

How do I calculate my mortgage payment?

The easiest method to accomplish this is by utilizing our calculator. It operates based on a straightforward formula, which you can also apply manually to compute the payment amount:

M = P*i(1 + i)^n / (1 + i)^n – 1

M – estimated monthly mortgage payment;

P – principal;

I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);

N – the loan term expressed in months (in other words, the overall number of monthly payments)

Consider you're seeking a 15-year fixed mortgage loan with a 6.99% APR (represented as a unit fraction, 0.0699). The house is priced at $500,000, and you plan to make a 10% down payment ($50,000). Therefore, the principal amount (P) will be 90% of the initial home cost ($500,000 - $50,000 = $450,000).

I = .0699 % / 12 = .005825%.

Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.

M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.

So, you are going to pay about $4042 a month.

It is important to note that the calculated M value is approximate, as no extra fees are taken into account.

Tips for first-time home buyers in Maine

To begin with, there are various federal agencies like USDA, FHA, and VA that provide loan guarantees for specific borrowers. Many first-time homebuyers can explore options that align with their budget.

In addition to these government-backed programs, it's worthwhile to explore offerings from the Maine Housing Corporation (UHC) available to residents of Maine. Specifically, first-time homebuyers meeting the qualifications for an FHA loan with a minimum FICO score of 660 can apply for the FirstHome program. This initiative covers up to 6% of the loan amount to assist with down payments and/or closing costs. It's important to note that this support is provided in the form of a 30-year fixed-rate second loan. If you don't meet the criteria for the FirstHome program, there's a Housing Score Loan Program, which provides up to 4% assistance, with a minimum acceptable credit score of 620.

Here are some valuable tips for first-time buyers:

1. Obtain pre-approval in advance. This enhances your credibility in the eyes of home sellers. It's advisable to secure pre-approval letters from not just one, but a minimum of two or three different lenders.
2. Compare various mortgage rates. Consider at least three different lenders. The more options you explore, the better.
3. Perform preliminary calculations based on your pre-approved amount. Plan for your future expenses accordingly.
4. Save as much as possible for a down payment and start early. A larger down payment reduces the principal amount, potentially lowering your overall costs. Initiating savings in advance is crucial.
5. If you're eligible for a VA loan, prioritize this option.
6. Explore both government-backed programs and local assistance initiatives. There may be enticing opportunities you don't want to miss.
7. If feasible, work on paying off existing debts.