AUGUSTA, Maine–Rep. Wayne Farrin (D-Jefferson) introduced legislation before the Housing and Economic Development Committee of Maine’s legislature that seeks to help more Mainers afford to buy homes by reducing mortgage costs.
LD 2077 would direct the Maine State Housing Authority to provide grants of up to $15,000 to eligible Maine homebuyers to help them lower their mortgage rate. It would also create an income tax deduction for private mortgage insurance payments on primary residences.
“When I started as a real estate agent, I used to help around eight to 10 buyers every year purchase their first home. Helping people take this step was one of the best parts of the job for me, but it’s become rarer over the years,” Farrin, a licensed real estate agent, said in a statement. “Homeownership is the key to building generational wealth and putting down roots in a community, but it’s become a dream that’s out of reach for working people. This bill will help make progress to bring that dream back within reach.”
$70K in Savings
According to Farrin, in practical terms, lowering the interest rate from 6% to 5% on a $300,000 mortgage would save a family nearly $200 a month – which amounts to almost $70,000 over the life of a 30-year loan.
In 2020, Farrin said 39% of Maine households couldn’t afford the median-priced home. By 2024, that number jumped to 64%. In Lincoln County, the numbers are even more stark: 74% of households are unable to afford the median-priced home, he said.
Historic Lows & Historic Highs
“With our housing inventory at historic lows and prices at historic highs, we need innovative solutions that meet this moment,” said Farrin in his statement. “While this legislation won’t solve our housing challenges overnight, it provides a meaningful step that we can take that will help more folks be able to afford to buy a home.”
The Maine Association of Realtors and Habitat for Humanity testified in support of the bill.
The Legislature’s Housing and Economic Development Committee will hold a work session on this bill in the coming weeks.
