Mortgage FAQs
How to calculate a mortgage payment
Mortgage payments are calculated based on the loan amount, interest rate, and loan term. The formula takes into account the principal and interest payments over the life of the loan.
Formula for calculating a mortgage payment
The basic formula is: M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1], where M is the monthly payment, P is the principal loan amount, i is the monthly interest rate, and n is the number of payments over the loan's lifetime.
How a mortgage calculator helps you
A mortgage calculator simplifies the complex calculations involved in determining your monthly payments. It allows you to quickly see how different loan amounts, interest rates, and terms affect your payments.
How lenders decide how much you can afford to borrow
Lenders typically use the 28/36 rule: your monthly mortgage payments should not exceed 28% of your gross monthly income, and your total monthly debt payments should not exceed 36% of your gross monthly income.
Typical costs included in a mortgage payment
A typical mortgage payment includes principal, interest, property taxes, and homeowners insurance (PITI). Some loans may also include private mortgage insurance (PMI) or homeowners association (HOA) fees.
Reducing monthly mortgage payments
You can reduce your monthly payments by making a larger down payment, finding a lower interest rate, extending the loan term, or buying a less expensive home. Refinancing can also potentially lower your payments.
Monthly mortgage payments can go up
Your monthly payments can increase if you have an adjustable-rate mortgage (ARM) and interest rates rise, or if your property taxes or homeowners insurance premiums increase.
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Maine Mortgage and Refinance Rates Today (APR)
Accurate as of 8/7/2024
| Product | Interest rate | APR |
|---|---|---|
| 30-year fixed-rate | 6.125% | 6.201% |
| 20-year fixed-rate | 5.875% | 5.960% |
| 15-year fixed-rate | 5.250% | 5.358% |
| 10-year fixed-rate | 5.750% | 5.979% |
| 7-year ARM | 6.000% | 7.079% |
| 5-year ARM | 6.125% | 7.401% |
| 30-year fixed-rate FHA | 6.000% | 6.772% |
| 30-year fixed-rate VA | 5.250% | 5.619% |
Data source: Maine State Housing Authority. Use is subject to the Terms of Use
Average Property Tax in Maine Counties
Taking U.S. Census data, NerdWallet has crunched the numbers to help you understand what property tax rate you can expect to pay on your future home in Maine. Because assessed values aren't frequently updated, you may pay a higher rate at first but eventually you'll pay a similar rate.
| County | Avg. property tax rate | Avg. home value |
|---|---|---|
| Androscoggin County | 1.36% | $184,500 |
| Aroostook County | 1.36% | $108,000 |
| Cumberland County | 1.33% | $302,700 |
| Franklin County | 1.22% | $158,900 |
| Hancock County | 1.03% | $230,000 |
| Kennebec County | 1.40% | $185,900 |
| Knox County | 1.21% | $240,500 |
| Lincoln County | 1.05% | $245,300 |
| Oxford County | 1.31% | $169,400 |
| Penobscot County | 1.52% | $159,400 |
| Piscataquis County | 1.31% | $123,400 |
| Sagadahoc County | 1.41% | $230,300 |
| Somerset County | 1.37% | $134,600 |
| Waldo County | 1.33% | $185,400 |
| Washington County | 1.37% | $125,500 |
| York County | 1.25% | $286,500 |