FAQ's about Maine Mortgages and Home buying
Maine Home Connection
Home Home About Us About Us Contact Us Contact Us
MHC MHC MHC MHC MHC MHC
Buyers Sellers Stats Maine Blog Properties
Explore Communities
Search All Properties
Weekly Video Updates
Your Home's Value
Waterfront Real Estate
Relocation Services
Featured Listings
Home Finance & Mortgage
Retirement in Maine
Real Estate Investing
Media Archive
Featured Properties
Enter a keyword to search the site

Features & Services
  
Your Home's Value
My Home's Value:
Receive a Report of  Your Home's Value 
New ConstructionNew Construction: 
Guidelines, Builders, Green Homes
Your Home's ValueMarket Conditions:
Current Home Sales Reports & Statistics 
Sold PropertiesSold Data:
View All Recent Home Sales History
Left-MarketingHome Marketing:
Maximum Exposure© Home Marketing 
  
...Manage Your Account
  
Login
Existing Users:
Login with your email address only
Existing UsersNew Users: 
Simple signup to view   all Maine properties.
Contact Us
Contact Us:  
Call or email us with your questions.
  
Newsletter Signup
 


Maine Mortgage Center

FAQ's - Questions & Considerations

FAQ - Maine RelocationWhen financing a home in Maine there are several key issues to consider.  Below are several questions that you shoul review with your family and then your mortgage or bank representative.

How long do you plan to stay in this home?

Five years - Ten years - Thirty years? The length of time you will be in the home will certainly play a part in determining which loan to apply for. If you only plan to be in the home for 5-7 years or less, you should seriously consider an adjustable rate loan. If you intend on staying 20-30 years, a fixed rate mortgage may be right for you.

How much risk are you willing to accept?

If you are the type of buyer that needs to know exactly what you will be paying each month for the term of the mortgage, a fixed rate mortgage will fulfill this need. The fixed rate loan, however, will also net a higher interest rate. If you are willing to take some risk of fluctuations in the interest rate, you may be able to receive a lower interest rate.

What are your income expectations?

Plan for the future. Do you anticipate a gradual or dramatic increase in your income in the next few years? If you expect a big increase, a graduated payment mortgage may be best for you.

How much cash do you have available for upfront costs?

If you have the resources, you may want to make a larger down payment to lower your monthly payment. By keeping a higher monthly payment however, you might be able to shorten the term of the loan to a 15-year loan in order to pay it off quicker.

Keep in mind that you'll have closing costs and fees to pay in addition to your down payment. If you don't have much cash saved for your upfront costs, don´t despair. You may need to accept a higher monthly payment or even lower your monthly obligation by choosing an adjustable rate mortgage. In addition to choosing a type of loan, you must also consider which lender to use. Once again, several factors will influence your decision.

What is the Annual Percentage Rate (APR)

This is most likely the best way to make an "apples-to-apples" comparison of lenders. The APR reflects the cost of credit on a yearly rate and includes any points and fees in addition to the interest rate.

Finalize the Interest Rate

Find out the rate the lender will commit to and how long the lender will guarantee it. Get any commitments in writing. As with any transaction, if it isn't in writing, it doesn't exist.

Understand all Points and Fees

These factors will vary greatly. Look out for hidden fees. Make sure the lenders disclose all fees; ask what they charge and what is included and what is not.

Loan Approval

Both approval and funding time should be considered. You don't want to lose a prospective home because your lender takes weeks to fund your loan. A lender should be able to fund the loan within ten days.

Review the Lender's Reputation

Don't rely solely on someone else's recommendation. You must feel comfortable with your lender. If you do feel good about your lender and trust him or her, it will be much easier to trust their advice regarding what kind of mortgage will best suit your needs.

 

 

 
Buying Your Home Heart and Mind Buyer Agency
Exclusive Services Agency Relationships Title Insurance
Home Buying Process Advice and Strategy
Affect of the Economy Determining A Price First Time Buyers Viewing Homes Second Homes Home Search Strategy Waterfront Real Estate
Common Forms
Selling Your Home Your Home's Value Home Marketing
Digital Photography High Definition Video Property Storyboard Virtual Staging Internet Marketing
Pricing Factors Advice and Strategy
Counteroffers Establishing a Price Listing Agreements Feng Shui Principles Considering Repairs Value of Improvement Choosing A Realtor Common Mistakes
Home Selling Process
Stats
Maine Maine History Maine Geography Maine Economy Maine Demographics Maine Education Maine Climate Maine Beaches
Maine Real Estate Blog
Search for Properties Hyper Local Search Preset Local Searches
Maine Communities Portland South Portland Scarborough Falmouth Cape Elizabeth Cumberland Yarmouth Old Orchard Beach Freeport Harpswell
Search For Homes Maine Map Search Detailed Property Search Search By Address Search By MLS Number
Weekly Video Updates
Home Valuation
Waterfront Real Estate Coastal Maine
Maine Coastal Properties
Maine Lakes
Maine Lake Properties
Maine Rivers Casco Bay Islands
Peaks Island Chebeague Island Great Diamond Island Long Island Cliff Island Cushing Island
Waterfront - FAQ's
Relocation Services Relocation Package Area Digital E-Guide Maine Counties Quality of Life Education and Schools Art and Culture Property Tax Rates Common Relocation FAQs Moving Long Distance
Mortgage Center Mortgage Types Credit Scoring Fee & Closing Costs Mortgage FAQs Tax Credit
Retirement in Maine Retirement Planning Retirement Communities Changing Demographics
Real Estate Investing Vacation Homes 1031 Tax Exchanges Condos and Townhomes Remodeling: Cost vs Value
Video Library