Maine Waterfront Property – Dropping Rates, Rising Opportunities

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Maine Waterfront Property – Dropping Rates, Rising Opportunities


Falling mortgage rates provide a reason for hope in a pokey, off-season Maine lakefront property market. As activity levels decline, so will prices, while strong inventories continue to offer lots to look at. Given the low mortgage rates, this combination of factors sets up a good opportunity for prospective buyers of Maine lakefront property.
The latest headline on mortgage rates said they were the lowest in 30 years. I called around to several banks in the area and asked them about their APR on a 30 year fixed rate loan. Kennebunk Savings – 5.16%, Key Bank – 5.65%, TD Banknorth – 5.42%, and Bangor Savings – 5.15%. Emma Bodwell of Highland Mortgage in Naples, works with the secondary market and says she has 30 year, fixed rate loans available under 5%, for qualified borrowers.
If you are looking at buying a conventional, year round home, some banks are still willing to finance up to 95% of value. On a seasonal camp, however, you may find banks asking you to cough up a 20% down payment. For these so-called “non-conforming” properties, it is hard to get mortgage insurance to cover that last 20%, so the bank needs the buyer to come up with a 20% down payment. Nonetheless, borrowing money at a fixed rate of 5% for 30 years is still a great deal.
We’ve seen a small bump-up in buyer activity since the first of the year. Some buyers are just bottom fishing looking for something to throw a low-ball offer at, but others are ready to get back into the market in a reasonable way, wanting to take full advantage of the good inventory, low borrowing costs, and some good values. And value is the key here. If you are looking for a “steal”, look elsewhere. But if you want good value, a fair deal, then we can help you in this market.
If you are a buyer, keep in mind that the Maine lakefront property market is not Florida – where overbuilt condo units are selling for 40% of their asking price. The Maine lakefront property market is more stable than that and resistant to these wide swings in the market. That being said, lakefront property values are correcting down 15-20% from their highs of three years ago – and the properties that are priced “right” are selling.
You can take a look at what’s currently on the market by using our search tool, Lakefront Locator. It’s easy and fun, costs nothing, and is a good way to spend a few minutes – or  a few hours – during these cold winter days and nights.

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