Connecticut Mortgage and Refinance Rates

Current mortgage rates in Connecticut

As of Friday, December 8, 2023, current interest rates in Connecticut are 7.40% for a 30-year fixed mortgage and 6.69% for a 15-year fixed mortgage. Refinance rates in Connecticut are slightly higher than purchase rates.

While interest rates are no longer at historic lows, you might still want to explore a cash-out refinance. This cash can be used for consolidating higher-interest debt, paying tuition, making home improvements or any other purpose. Use Bankrate’s mortgage refinance calculator to run the numbers.

Connecticut mortgage rate trends

Mortgage rates in Connecticut have trended upward over much of the last two years, mirroring the national trend. As of October 2023, a 30-year, fixed-rate mortgage averaged just below 8 percent.

National mortgage rates by loan type

Mortgage statistics for Connecticut

Connecticut is the third- smallest state by total area, but with the sixth-highest population density, according to the U.S. Census Bureau. Here are some stats about mortgages and the housing market in The Nutmeg State:

• Average home value (as of Oct. 2023): $381,012 (Zillow)
• Homeownership rate (as of Dec. 2022): 64.2% (U.S. Census Bureau)
• Average mortgage loan size in 2022: $414,090 (Home Mortgage Disclosure Act)

Mortgage options in Connecticut

There’s a variety of mortgage options available to homebuyers in Connecticut, including:

• Connecticut conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
• Connecticut FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
• Connecticut VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent.

First-time homebuyer programs in Connecticut

The Connecticut Housing Finance Authority (CHFA) offers several programs designed to assist first-time homebuyers in making a purchase more affordable. Here’s a rundown:

• HFA Advantage and HFA Preferred loans: HFA Advantage and HFA Preferred loans are two 3 percent-down conventional loans offered through housing finance agencies, including the CHFA.
• Conventional Area Median Income Loan Program: The Conventional Area Median Income Loan Program (CALP) is aimed at first-time buyers who do not qualify for an HFA Advantage or HFA Preferred loan because their income is greater than 80 percent of the area median income (AMI).
• Down Payment Assistance Program Loan: The CHFA offers a Down Payment Assistance Program (DAP) loan up to $20,000.
• Military Homeownership Program: The Military Homeownership Program features 0.125 percent off a below-market interest rate for veterans and unmarried, surviving spouses or civil union partners of a veteran who died as a result of military service or service-connected disabilities.
• Police Homeownership Program: The Police Homeownership Program offers police officers mortgages with interest rates that are an additional 0.125 percent off below-market rates. (Note that only certain municipalities participate in the program.)
• Teachers Mortgage Assistance Program: The Teachers Mortgage Assistance Program also features 0.125 percent off below-market interest rates to teachers and those who graduated from a historically black college or university, or a Hispanic-serving institution.
• Home of Your Own Program: CHFA also offers mortgages specifically for first-time borrowers living with disabilities through the Home of Your Own Mortgage Program. If you or someone in your family who will be living in the home has a documented disability, the program can help you get a lower interest rate.
• Homeownership for Residents of Public Housing: Yet another option, the CHFA offers a mortgage designed to help residents of public housing transition from being renters to homeownership. The Homeownership for Residents of Public Housing loan offers below-market interest rates to qualified tenants of public housing. The mortgage is also available to participants in rental assistance programs and tenants of rental housing supported by the CHFA, the U.S. Department of Housing and Urban Development (HUD) and local housing agencies.
• Mobile Home Mortgage Program: If you’d like to buy a mobile home, the CHFA Mobile Home Mortgage Program offers low interest rates and low closing costs.

You can visit the CHFA resource map for detailed eligibility requirements. 

Additional Connecticut mortgage resources

• Connecticut first-time homebuyer resources: Get more help becoming a homeowner.
• Connecticut loan limits by county: Learn the conforming loan limit for your city or town.
• Connecticut mortgage lenders: Explore mortgage lenders in your state.

How to find the best mortgage rate in Connecticut for you

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Learn more about how to get a mortgage.