close
The price comparison tools on this website require you to disable Adblock for full functionality. Please consider disabling your ad blocker on our website in order to best take advantage of our tools.
Menu Menu

Compare The Best Mortgage Rates in Solon, ME

 
 
Mortgage Rates in Solon, ME

Compare Solon, ME Mortgage Rates

When looking to buy a new home, it is important that one is well equipped with the necessary information. It helps, in the long run, to reduce the cost of transacting. Therefore, getting the best mortgage rates is of paramount importance. Needless to say, affordable rates are also important to those seeking to refinance their current home loans. MyRatePlan endeavors to assist you in finding the best mortgage rates in Solon, ME.

Best Mortgage Rates in Solon, ME

Finding the Best Mortgage Rates in Solon, ME

Most of the population does not have enough cash on hand to buy a house outright. A loan is most likely one of the first priorities when one is looking to purchase their house in Solon, ME. Even houses that start at $50,000 will require being approved for a loan for most people. You'll want to know exactly what you will need in order to get a home loan and what types of issues will influence the interest rate you are given. Since you want the lowest interest rate possible, make sure you shop around for the best option.

So how do you make sure you get the lowest interest rate on the market yet still land the house of your dreams? Let's take a look at how to do it. Many real estate agents will provide you with preferred lenders that he or she has done business with before after you find a home that you are interested in. It may sound like the easy way out but many times it isn't. Some real estate agents simply want to move the house as quickly as possible. This may mean the lenders they refer you to may have higher interest rates but will approve you quicker. You may want to get your house quickly, but don't get pushed into a lender that offers only high-interest rates just to save a few weeks. No matter what company you use, check their rates out online to make sure you are comparing every little detail. Using MyRatePlan's mortgage rate tool is the best place to start when you want the lowest interest rate possible.

Types of Mortgages in Solon, ME

Are There Different Types of Home Loans in Solon, ME

There are a variety of mortgage types that cater to a range of buyers and incomes. Some of these are fixed-rate or variable rate mortgages, just to name two broader categories. We'll take you through the most common loan types you're likely to encounter when shopping for a place in Solon, ME.

Fixed-rate home loans for the Solon, ME area are those that require you to pay the same amount of interest throughout the life of the loan. That means that the amount you pay on a monthly basis does not change, regardless of month, year, or circumstances. This is also true even if you choose a long-term financing plan like a fixed-rate loan over a period of decades.

Adjustable-rate mortgages, as the name implies, have interest rates that will fluctuate slightly over time. Generally, an adjustable-rate mortgage starts out as a fixed-rate mortgage for a predetermined length of time that begins at the start of the loan period. After this time, the rate will change slightly, usually once per year. This combination of home loan types is why adjustable rates are also referred to as a hybrid mortgage. For example, if you have an adjustable-rate mortgage that lists 5/1 on the form, that means the loan has a fixed rate of interest for the first five years of its life. After these five years, the home loan adjusts once each year, signified by the one after the five.

FHA Loans in Solon, ME

Solon, ME FHA Mortgage Loans

Every borrower will need to decide whether to get a fixed-rate mortgage, an ARM or a hybrid ARM. They also need to figure out if they want to stick to a traditional type of home loan, which is only backed by the mortgage lender, or apply for a government-insured home loan, such as an FHA loan, a VA loan or a USDA loan. With these loans, the federal government is providing insurance or a guarantee on the loan to help the lender avoid heavy losses in the event of a borrower defaulting.

FHA loans in Solon, ME are offered by the Federal Housing Administration, a branch of the Department of Housing and Urban Development, or HUD for short. The FHA has a mortgage insurance program to cover lenders, and its FHA loans are an option for any type of borrower, meaning it's not only first-time borrowers who can get an FHA loan. That mortgage insurance covers any losses the mortgage lender would have if the borrower defaulted. One significant advantage with an FHA loan for the borrower is that they can get one with a much lower down payment, even as low as 3.5 percent of the home's total cost. The drawback with FHA loans is that the borrower must cover the cost of mortgage insurance, which adds to their monthly loan payment. They wouldn't need to pay as much if they put down a larger down payment and got another type of loan.

Refinancing a Mortgage in Solon, ME

Mortgage Refinancing in Solon, ME

Even though mortgage refinancing in Solon, ME is a common term, what is actually happening is the borrower is applying for a new home loan to pay off the old one. If the new mortgage has better terms, the borrower can save money, but they need to remember that the new mortgage could have closing costs, along with some other fees, that they must cover. To decide if refinancing a mortgage is the right move, the borrower must do the math and see if they'll save enough from the lower interest rate to outweigh any costs of the new mortgage.

There is one situation where the borrower doesn't need to double check the math, though, and that's if they're paying off an ARM with a fixed-rate mortgage. This is almost always a wise choice, because interest rates usually increase, which means fixed-rate mortgages are often cheaper in the long run. When a borrower wants to refinance a mortgage, they need to demonstrate that they're low risk. They can do so by getting to and maintaining a plus-700 credit score and having a low ratio of debt to income. Fortunately, even borrowers who can't quite reach the highest standards can still end up approved on a new mortgage in Solon, ME with low interest.