Marylanders Benefiting from State-Funded 2.875 Mortgage Interest Rate
6/7/12 - There’s something interesting happening right now in the state of Maryland that could predict an evolving trend in home ownership. Taking the proverbial bull by the horns in their efforts to deliver an energizing jolt to the state’s slumping housing market, lawmakers in Maryland have saved up $30 million and are poised to use that money to drive mortgage rates down to an incredibly attractive 2.875 percent for certain cities and counties of the state.
It’s all part of a state sponsored initiative appropriately (but not exactly creatively) named the Maryland Mortgage Program. But what’s really in a name, especially when it has to do with enabling citizens to save cold hard cash and simultaneously revitalizing the housing market where it’s needed most? In celebration of the nationally recognized as “Home Ownership Month,” Maryland plans to offer the astonishingly low mortgage rate to buyers starting in June and continuing for the next three months, or until the allocated funds are depleted – whichever comes first.
House hunters are no strangers to government funded programs that deliver this kind of needed assistance, but where the Maryland Mortgage Program stands out among all others is the fact that the low rates won’t just be made available to first time buyers, but to anyone – with a few important caveats.
First of all, the program is only available in certain targeted areas, those that the state found were in most need of a shot in the arm. The impacted areas include Allegany, Baltimore City, Caroline, Dorchester, Garrett, Kent, and Somerset. Additionally, there are portions of certain counties being included in the program: Anne Arundel, Baltimore, Frederick, Harford, Prince George’s, Washington, Wicomico, and Worcester counties.
The program is also offering incentive to buyers shopping the foreclosure market, establishing a fixed 3.25 percent mortgage interest rate to anyone who purchases a short sale or foreclosed home outside of the aforementioned targeted zones.
Another stipulation to qualifying for the state sponsored interest rate is that the buyer or refinancer has to maintain full time residence in the home. In other words, those taking advantage of the program won’t be allowed to rent out their home further down the road if they decide to move elsewhere and aren’t able to sell their homes. In addition to this, qualification for the low mortgage interest rate is reliant on attending a counseling program aimed at educating buyers on a variety of issues pertaining to home ownership, which the vast majority of experts agree can be effective at steering buyers away from getting into homes they can’t afford. This pragmatic approach to home ownership is seen as a positive step toward avoiding circumstances where homeowners will be faced with foreclosure, having bitten off more than they can chew.
Of course, the majority of people reading this are likely to ask the question: What does this mean for those of us who aren’t lucky enough to be Marylanders existing in the areas impacted by the initiative? The good news is, mortgage interest rates are still the lowest they’ve been in ages, regardless of where you hang your hat and call home. In order to take advantage of those rates while they’re still at record lows, prospective home buyers and those interested in refinancing to lower interest are urged to track national rates on a weekly basis. Failing to do so could leave many wishing they’d taken action sooner.
Best Fixed Rates and No Closing Costs Loan
Available in 15, 20 or 30 year terms, fixed-rate mortgages maintain the same interest rate throughout the entire life of the loan. The 30-year fixed-rate mortgage has a lower payment than other mortgage options, maximizes the potential for interest tax deductions, and never varies from month to month. Borrowers pay down the actual loan (principal) and interest, building equity over time. The 30-year fixed-rate mortgage is ideal for the homebuyer who wishes to budget for the same house payment every month, along with homeowners who plan to live in the home for 10 years or more.
Largest Cities in Maryland:
Bel Air North
Bel Air South