Compare The Best Mortgage Rates in Scarborough, ME

Compare Scarborough, ME Mortgage Rates

When you are looking to buy a new home or want to get your current home refinanced from another lender, securing the best home loan interest rates is a must. MyRatePlan helps buyers find the best home loan rates in Scarborough, ME. The process of finding mortgage rates through MyRatePlan is straightforward. All you have to do is use the tools here and input your loan requirements and you'll get a quick comparison of mortgage rates in your area. Doing a little research before applying for a mortgage helps get you better rates, which helps in saving a considerable sum of money in the long run.

How a Borrower Can Secure the Best Mortgage Rate in Scarborough, ME

If someone is interested in buying a home in Scarborough, ME, they are more than likely going to need a mortgage to do it. Even the homes with the lowest prices are still typically at least $50,000, and since that's more than the majority of people have sitting in their bank accounts, it's just about impossible to get a home by paying cash. That means the homebuyer is going to need a home loan for financing, and they'll want the absolute lowest possible interest rate to keep costs down. The first step, after the prospective borrower locates the home of their dreams, is to do their own research on mortgage lenders. It's common for real estate agents to give their own advice here, and they often recommend mortgage lenders they've done work with in the past. The problem is that the real estate agent primarily cares about closing the home purchase, and the buyer's interest rate is secondary. But getting a mortgage approved quickly isn't always best, as it can take time to find the top deals. The borrower should look around and use the internet to get the info they need to make an informed decision. With the MyRatePlan mortgage rate tool, any borrower is able to pull up the lowest mortgage rates across Scarborough, ME. Now, to receive approval on a loan at a low rate, the borrower will need to have a good credit score, and the higher, the better.

Types Of Home Loans Available In The Scarborough, ME Area

There are many types of loan products which are available to a variety of home buyers. The options may include both variable-rate mortgages and fixed-rate mortgages. Below is some more information about the two most common types of loans and who they are more geared towards.

Fixed-Rate Home Loans In Scarborough, ME - A fixed-rate mortgage will have the same interest rate throughout the entire loan term. This means that the amount of your monthly payment will remain the same each month until you're done paying off the loan. This is even true for loans as long as 30 years. The interest rate and the monthly payment will remain the same throughout the whole loan term.

Adjustable-Rate Home Loans In Scarborough, ME - An adjustable-rate mortgage, or an ARM for short, is a type of loan where the interest rate can adjust or change at different points throughout the loan term. Generally, the interest rate on an adjustable-rate mortgage has the ability to change each year after the initial fixed-rate period. Oftentimes, this is referred to as a "hybrid" product. Hybrid ARM loans are ones which start off with fixed interest rates and then switch to an adjustable rate. As an example, a 5/1 adjustable-rate home loan can carry a fixed rate on the loan for the first five years and then may be adjusted each year after. This is what the five and the one signifies in the name.

FHA Mortgages in Scarborough, ME

While you will need to decide between a fixed- or adjustable-rate home loan, that isn't the only choice you need to make. You also must choose whether you'd prefer a loan that is backed by the government, such as an FHA loan, or a conventional loan instead. When we say conventional, we mean a mortgage that is not guaranteed or insured by the government. This is the primary difference between conventional loans and FHA, VA, and USDA loans, all three of which are backed by the government.

HUD, also known as the Department of Housing and Urban Development, is the governing body for all Federal Housing Loans. As these are federal loans, they are available to prospective homeowners in the Scarborough, ME area and include every buyer type, not just the first-timers. The government takes on the responsibility of ensuring the lender should any losses occur thanks to the buyer. An advantage for consumers is that you can make a potentially very low down payment. A disadvantage is you must maintain mortgage insurance, which will raise your overall payments.

Refinancing a Mortgage in Scarborough, ME

Refinancing Mortgages in Scarborough, ME

In Scarborough, ME, refinancing a mortgage loan is like applying for a new one. The end result of this is that one may have to pay closing costs or any other fees required. This is, however, done when the loan is approved. If one seeks to refinance for the sake of enjoying lower rates, they should carefully consider the consequences of refinancing. The extra costs may offset some savings that one sees from refinancing. The exception to this rule is when one is refinancing from an adjustable rate loan to a fixed-rate loan. The reasoning is that the rates are more likely to go up in the future rather than going down.

Appearing as low-risk is the best strategy for those looking to refinance their mortgage. This can be achieved by keeping one's credit score above 700, keeping one's debt-to-income ratio low, and applying for a fixed-rate loan facility.