Maine Mortgage Calculator
Published April 23, 2024
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The Pine Tree State may not have a high population, but it is a state that's rich in natural wonder. People looking to escape the chaos of big city living seek Maine as a quiet alternative, or stay in their home state because they can't find another place like it in the northeastern United States.
If you're considering buying a home in Maine, it's important to understand the costs that will be associated with your new home -- that's why we've designed this Maine mortgage calculator. Simply plug in some numbers, and presto, you'll have a better idea of what you can afford to buy this real estate season.
The Pine Tree State may not have a high population, but it is a state that's rich in natural wonder. People looking to escape the chaos of big city living seek Maine as a quiet alternative, or stay in their home state because they can't find another place like it in the northeastern United States.
If you're considering buying a home in Maine, it's important to understand the costs that will be associated with your new home -- that's why we've designed this Maine mortgage calculator. Simply plug in some numbers, and presto, you'll have a better idea of what you can afford to buy this real estate season.
Although Maine has been affected by the astronomical housing market growth that has touched most of the United States, its median sales price for February 2024 was just $360,200, which remains below the national median home sales price of $412,778 during the same time period. It's still a very affordable and attractive option for home buyers who don't need or want the big city experience.
Life in Maine can move at a bit of a slower pace, but the real estate market there sure doesn't. In February 2024, the average home sold for 98.5% of its listing price, and over 29% of homes sold for more than their asking price. This is likely due, at least in part, to continued limited housing supply, January and February 2024 saw a spike in inventory to three months, but in general, supply has been in the two month or below range since May 2020.
Buyers have had a little bit longer to look at homes this winter, with days on market in Maine at 53 for February 2024 and 50 for January 2023, but if history is any indication, the market is about to start heating up again for the year. June 2023 saw days on the market at just 19, so before you think about buying a house, talk to mortgage lenders about their best mortgage rates.
Here's a quick peek at some of the most important Maine markets and how things are doing there.
| Metropolitan Area | Median Home Value | 1-Year Change |
|---|---|---|
| Auburn | $300,650 | 3.3% |
| Bangor | $264,450 | (1.3%) |
| Lewiston | $277,500 | 7.6% |
| Portland | $649,869 | 15.5% |
| Sanford | $330,000 | (5.0%) |
For most people, the urge to calculate their mortgage payment on their own comes from simply wanting to know what they're going to be spending, but instead of subjecting your finances to the errors of manual math, a mortgage calculator can give you more simple answers. If, on the other hand, you want to see how the sausage gets made, here's the basic formula:
Your basic mortgage payment, commonly referred to as "P+I" or "PI," is just made up of your mortgage's principal and interest. And for some people, that's all there is. In that case, your entire mortgage payment is based on your principal, interest rate, and term, which is the amount of time you have to repay your loan.
Most mortgage payments these days also include additional fees, like:
To calculate your new mortgage with these additional expenses included, just click "show additional inputs" on the mortgage calculator above and add your estimated figures. It will get you a very close estimate of what to expect.
Buying a home in Maine is generally an attainable goal for most buyers, but beware the relatively high property taxes there. Mainers will spend an average of 1.09% of their home's assessed fair market value on taxes every year. That means for a home assessed at $177,500, the taxes paid will be $1,936 every year. Maine ranks 18th in the nation for property taxes as a percentage of home value.
In some ways, climate change may actually benefit Maine residents, since it will help take the edge off of those incredibly cold winters, but it is also bringing with it new problems. More intense rain and rising sea levels will make flooding a much bigger issue, especially as Maine's wetlands are overtaken by the ocean. Storms and storm surge is also a serious potential threat in the coming decades, so Mainers should be prepared, especially considering how many live near the water.
In coastal Maine, especially, signing up for coverage beyond your homeowners insurance policy, including wind and flood insurance would be good bets to take. These hazards are often not covered under a basic plan, so ask your insurance agent what coverage you're getting and what's likely to be really needed in the coming years.
Once you have the insurance figures, you can also plug that number into the Maine mortgage calculator to help give you a better estimate of your overall monthly payment.
The Maine State Housing Authority, MaineHousing, provides two grant programs for first-time home buyers, depending on their circumstances.
The Advantage grant is a $5,000 flat grant for first-time home buyers in Maine to help cover down payments, closing costs, and any prepaid escrow expenses due at closing. It's available for several different types of properties, including mobile homes with land, and standard single family residential homes.
Borrowers must contribute 1% of the loan amount out of their own funds, but that money can be in the form of gift funds. They also need to complete a home buyer education course before their grant will be approved.
The First Generation pilot program is a unique program for first-time Maine home buyers who did not grow up with a tradition of homeownership and who have never owned a home. This program is expressly designed for borrowers who have never lived in a home owned by themselves or their parents or guardians, as well as borrowers who were in foster care.
The grant portion of the program provides a total of $10,000 to qualified borrowers who complete both a financial literacy and home buyer education course. Like with the Advantage grant, home buyers will need to contribute at least 1% of their loan amount in funds at closing.
Even if you don't qualify for a first-time home buyer program in Maine, there are lots of opportunities for great loans in the state. Because much of the state qualifies under USDA Rural Development rules, you may be able to get a USDA home loan through this program as well.
Before you apply for a mortgage anywhere, though, make sure that you're truly ready. A well-qualified buyer will not only often qualify for a better rate, they'll be able to bring a stronger offer in a multi-offer situation. Be the best buyer you can be by:
Even money you've been given by a relative or friend for your closing (gift funds) should be in your account for a few months before you try to buy a home. This ensures that the bank can not only verify its origins, but that it won't disappear at the last minute because someone changed their mind about helping you close on your home.
Maine offers first-time home buyers some excellent opportunities for assistance through MaineHousing grants. Borrowers who qualify will only need to bring 1% of their loan balance to closing to cover expenses, the rest can come from their $5,000 or $10,000 grant. For borrowers who don't qualify, VA loans and USDA loans are very good options that require nothing down. Mainers can also use FHA loans with 3.5% down payment requirements or conventional mortgages that just require 3% down.
Closing costs in Maine are very reasonable, with home purchases, on average, only costing about $4,420 to close. Refinances in Maine are even more affordable, at just $2,944 on average.
Although Maine may have more expensive insurance on the horizon due to rising sea levels, for now it's one of the most affordable states in the country for homeowners. On average, a $300,000 policy will cost about $1,391, which is $1,210, or 47%, less than the average policy in America.
Maine has fairly high taxes compared to other states, ranking 18th out of 50 for tax as a percent of assessed fair market value. The average rate in Maine is 1.09% of the assessed value, or $1,936 per year for the average assessed value of $177,500.
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Please note that this calculator is not personalized financial advice and should not be considered or used as such. Nor are we promising that by use of this calculator, will you be able to save more money, preserve wealth, or otherwise.
