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New Home Financing

Somerset Mortgage Lenderscan find you the perfect loan and start your home purchase off right. With hundreds of loan programsavailable, we’ll help you match your needs with a loan you’ll love for as long as you own your home. Somerset Mortgage Lenders can find you the perfect loan and start your home purchase off right. With hundreds of loan programs available, we’ll help you match your needs with a loan you’ll love for as long as you own your home.

Fixed Rate Loans

Several categories of conventional loans exist, the most common and familiar being the fixed rate mortgage. In the cases of fixed rate mortgages, the borrower will lock in an interest rate, and pay down both the principal and interest on the loan at that interest rate every month until the mortgage is paid off. The most typical term of a fixed rate loan is 30 years, though fixed rate mortgages can also be obtained for much shorter terms, the primary difference being in the size of the monthly mortgage payment.

Conforming Loans

Other conventional loans are known as conforming loans. In these cases, an arrangement is made between borrower and lender that comply with the stipulations of two federally run mortgage tradingcompanies (or Government Sponsored Entities - GSEs) Fannie Mae (FNME) and or Freddie Mac (FHLMC).

Fannie Mae and Freddie Mac does not directly approve or deny loans. They buy and sell home mortgages, working with lenders to make home ownership easier for people to attain. Lenders like to sign up borrowers with conforming loan, because they can then sell these loans to Fannie May or Freddie Mac in order to more quickly receive the funds coming to them, and use those funds to make other investments. Fannie Mae and Freddie Mac, in turn, then repackage these loans to sell to investors as securities.

The current guidelines for a conventional Fannie Mae loan set a maximum purchase price for a single-family home at slightly above $415,000 (though residents of Alaska, Hawaii, or Guam may be able to qualify for an even larger loan).

The interest rateas well as the short- and long-term pricing on a conforming loan is determined primarily by the type of loan applied for. Also taken into consideration will be the amount of funds you already have to contribute to closing costs, your credit rating, credit score, and credit history, your employment history, and the type and location of the home in question.

Jumbo Loans

Other forms of conventional loansare nonconforming loan instruments that do not meet Fannie Mae or Freddie Mac loan qualifications, such as jumbo loans, or loans so large they fall outside the Fannie Mae and Freddie Mac loan limits (or purchase limits). Jumbo loans are provided by private investors and as such ordinarily come with much higher interest rates than conforming loans.

FHA Loans

Government entities from a local to a federal level and private entities alike have worked to Develop loan programs that make home ownership a reality for many people considered Under-qualified for traditional mortgages, these include; loans for first-time homebuyers, people with a low-to-moderate income that are insured by the Department of Housing and Urban Development (HUD) via the Federal Housing Administration (FHA). HUD and the FHA do not make loans directly, rather they insure loans; meaning that the lender still gets paid back - even if you default on the home loan.

Return to new home financing in the state of ME

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Auburn, Maine News
Auburn's Dunn good as gold

Abby Dunn, a sophomore at EL, won the girls' racewalk gold medal Sunday at the National Indoor High School Track Championships.


Auburn comprehensive plan work aimed at April draft

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No snow equals early golf

Some area golf courses have seen less than a half a foot of snow in nearly two months, and, buoyed by a forecast for more of the same, along with some frost-busting rain and warmer temperatures on tap for this weekend, golfers with an itch to pick up the sticks and play a round will have that chance as early as Thursday.


Distracted driver crashes minivan into building

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Water Street resurfacing on city's wish list

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Police Arrest Man After Auburn Hit-And-Run

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Tron, that's about the first

Daryn Slover/Sun Journal Bill Murray, a third-grade teacher at Sherwood Heights Elementary School in Auburn, gathers pieces of broken up Styrofoam trays from two of his students.


Jay Police Seek Help In Finding Suspected Thief

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Auburn firm to build new school

An Auburn company has received the nod for the $10.5 million Mallett School building construction project.


Volunteer child care substitutes needed in Biddeford Portland Auburn, Maine

If you love children and you can spare some time to help children, you can become a child care substitute in the Biddeford, Portland and Auburn, Maine area! St.


The One Year Anniversary of the Stimulus Package

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Organizers of a rock festival scheduled for Independence Day weekend in Oxford announced more acts for the lineup Friday, including a Frank Zappa tribute band and a group with former members of the Jefferson Airplane/Starship. But it's the headlining act, Furthur, that has music fans buzzing about the Nateva Music & Camping Festival, scheduled July ...


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"...I was sure that Somerset was the right choice...they couldn't have been more compassionate or understanding...I just couldn't believe that this all happened within a week...Thanks to my loan officer and all the rest of those great people at Somerset, my family will be able to stay in the only home they have known for some time, without fear of being put out." - Tom N.
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