Mortgage Lenders Help Spur Growth in Rural Maine

By Joe Taylor Jr.
Local Lender Columnist
Jan 26, 2007
Residents of small towns like Rangeley, Maine used to work exclusively with local mortgage lenders to finance their homes. Many larger banks and brokers have lost interest in financing properties in the region, but recent real estate boom has changed everything. With both vacation and year-round homes growing and retaining value, mortgage lenders from around the country are now eager to refinance properties in the Pine Tree State, providing funds for purchases and new construction.

This growth in Maine's real estate value has had a positive impact on the region. Long time Maine residents now work with mortgage lenders to finance small businesses, so mom-and-pop shops now serve residents' needs in towns still too small to attract the attention of Wal-Mart and other big-box retailers.

Maine Attracts Retirees and Entrepreneurs

Maine is a haven for retirement-age professionals ready to slow down from fast-paced careers. High-quality of life combined with relatively low-cost living appeal to those looking for a change. Other professionals and entrepreneurs use new technology to serve national clients from their new, rural home offices. These new sources of income are usually reinvested in Maine's economy, allowing mortgage lenders to make deals with even more residents.

Some of Maine's new residents live there part-time, working with mortgage lenders to pull equity from homes in other parts of the country as down payments for vacation villas. Others are ready to leave city life behind for the joys of changing seasons and pleasant neighbors. Either way, mortgage lenders predict continued strong growth for real estate values in Maine.

Sources
Fortune Magazine
New York Times

About the Author
Joe Taylor Jr. has covered business and finance news for Financial Times Television and CNBC. He coaches beginning mortgage brokers to provide better customer service and to understand creative financing opportunities.