How To Buy A Home In Maine

...Everything You'll Need To Know

How much home can you afford?

Do you have the financial means for a down payment?

Great news! Over the years new innovative loan programs have evolved which require little down payment; as much as 5 percent or less! In fact, several programs now allow purchasers to buy real estate with nothing down.

In addition to a down payment, buyers also need money for closing costs. Several newly emerging loan programs not only allow the purchase of a new home with no money down, but also include the closing costs in the loan.

However, not everyone elects to purchase with little or no money down. Less money down means higher monthly mortgage payments, so most homebuyers choose to buy with some cash up front.

In markets where buyers have leverage, it may be possible to negotiate an offer for a home that requires the owner to pay some or all of your settlement expenses. Contact us for details.

Use the following to chart to determine your monthly principal and interest payments at various interest rates for either a 15 or 30-year term. 

Interest Rate Factors Per $1,000
Interest
Rates
Term
15 Years
Term
30 Years
4 %   $7.40   $4.77
4 ¼ %   $7.52   $4.92
4 ½ %   $7.65   $5.07
4 ¾ %   $7.78   $5.22
5 %   $7.91   $5.37
5 ¼ %   $8.04   $5.52
5 ½ %   $8.17   $5.68
5 ¾ %   $8.30   $5.84
6 %   $8.44   $6.00
6 ¼ %   $8.57   $6.16
6 ½  %   $8.71   $6.32
6 ¾ %   $8.85   $6.48
7 %   $8.99   $6.65
7 ¼ %   $9.13   $6.82
7 ½  %   $9.27   $6.99
7 ¾ %   $9.41   $7.16
8 %   $9.56   $7.34
8 ¼ %   $9.70   $7.51
8 ½ %   $9.85   $7.69
8 ¾ %   $9.99   $7.87
9 %   $10.14   $8.05
9 ¼ %   $10.29   $8.23
9 ½ %   $10.44   $8.41
9 ¾ %   $10.59   $8.59
10 %   $10.75   $8.77
10 ¼ %   $10.90   $8.96
10 ½ %   $11.05   $9.15
10 ¾ %   $11.21   $9.33
11 %   $11.36   $9.52
11 ¼ %   $11.52   $9.71
11 ½ %   $11.68   $9.90
11 ¾ %   $11.84   $10.09
  1. Find the appropriate interest rate from the chart above.
  2. Look across the column to the appropriate term to determine your interest rate factor.
  3. Multiply the interest rate factor by your loan amount in $1,000s.
An Example
Interest Rate = 5 ¾
Desired term = 30 years
Interest rate factor per $1,000 = 5.84
Mortgage = $175,000
Monthly Principal & Interest = $1,022
(5.84 x 175)

Add your monthly insurance premium and your property tax to your principal and interest to determine your total monthly payment.

We are providing this information as a guide. We strongly recommend that you contact our mortgage specialist.

 

The mortgage & loan process

Funding your home purchase
  1. Financial pre-qualification or pre-approval Application & interview Buyer provides pertinent documentation, including verification of employment Credit report is requested Appraisal scheduled for current home owned, if any
  2. Underwriting Loan package is submitted to underwriter for approval
  3. Loan Approval Parties are notified of approval Loan documents are completed and sent to title
  4. Title Company Title exam, insurance and title survey conducted Borrowers come in for final signatures
  5. Funding Lender reviews the loan package Funds are transferred by wire

Back...                                       ...Continue

Did you know...

In a Maine real estate transaction through a REALTOR, the SELLER pays the commission for the BUYERS!

Combine the advantage of a special loan program with the commission paid buy the seller and you could close on your new Maine property with little to no money.

Questions?...Contact us

Neighborhood considerations

More than just the home, it’s important to think about the type of neighborhood that is right for you.

Consider the following:

Specific streets you like

Areas you would enjoy

School district(s) you prefer

Your work location(s)

 Your favorite shops/conveniences

Recreational facilities you enjoy

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Meservier & Associates of Keller Williams Realty Mid Maine 34 Center St. Auburn, Maine 04210