Connecticut Mortgage and Refinance Rates
On Tuesday, June 06, 2023, the national average 30-year fixed mortgage APR is 7.05%. The national average 30-year fixed refinance APR is 7.13%, according to Bankrate's latest survey of the nation's largest mortgage lenders.
Bankrate has offers for Connecticut mortgage and refinance loans from top partners that are well below the national average. Compare, apply, and start saving today.
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Current mortgage rates in Connecticut
Mortgage interest rates have been steadily increasing for much of the year. As of Tuesday, June 6, 2023, current interest rates in Connecticut are 6.83% for a 30-year fixed mortgage and 6.16% for a 15-year fixed mortgage.
At the same time, however, the market appears to have slowed somewhat in Connecticut and home prices may finally be inching downward slightly, bringing homeownership within reach from some buyers who had been sidelined. The median sale price for a home in Connecticut during the first six months of 2022 was $375,000.
Refinance rates in Connecticut
Refinancing can be a great way to save money if you’re able to secure a lower interest rate. But you’ll want to crunch the numbers and be sure the fees and other costs associated with refinancing do not wipe out any potential savings. The Bankrate Mortgage Refinance Calculator will give you an idea of how much you stand to save.
How to find the best mortgage rate in Connecticut for you
Shopping around is the best way to get the most competitive mortgage loan. Comparing multiple offers from lenders can save thousands of dollars over the duration of a mortgage.
Mortgage options in Connecticut
There’s a variety of mortgage options available to home buyers in Connecticut including:
- Fixed-rate mortgages: Fixed-rate mortgages maintain the same interest rate over the life of your loan, which means your monthly mortgage payment always stays the same.
- Adjustable-rate mortgages: Unlike the stability of fixed-rate loans, adjustable-rate mortgages (ARMs) have interest rates that fluctuate with market conditions.
- FHA loans: Backed by the FHA, these home loans come with competitive interest rates, and help make homeownership possible for borrowers without a large down payment or pristine credit.
- VA loans: VA loans provide flexible, low-interest mortgages for members of the U.S. military (active duty and veterans) and their families.
- USDA loans: USDA loans help moderate- to low-income borrowers who meet certain income limits buy homes in rural, USDA-eligible areas.
- Jumbo loans: Jumbo mortgages are home loan products that fall outside FHFA borrowing limits. Jumbo loans are more common in higher-cost areas where home prices are often on the higher end.
First-time homebuyer programs in Connecticut
The Connecticut Housing Finance Authority (CHFA) offers several programs designed to assist first-time home buyers in making a purchase more affordable. There are programs aimed at buyers from all walks of life including disabled, military, police and teachers. There are also down payment assistance programs available.
For any of the programs listed, visit the CHFA resource map for detailed eligibility requirements.
Down Payment Assistance Program Loan
Saving enough money to cover down payment costs can often be one of the most challenging parts of getting into a home of your own. For those who have enough money to make monthly mortgage payments, but haven’t been able to save a down payment, Connecticut offers the Down Payment Assistance Program (DAP) loan.
Funds from the program can be used to cover both down payment and closing costs. Up to $20,000 in home purchase assistance is available and provided in the form of a low-interest second mortgage.
In order to be eligible for the program you must apply and qualify for a CHFA mortgage.
HFA Advantage and HFA Preferred Loans
Two Fannie Mae and Freddie Mac loan programs, HFA Advantage and HFA Preferred, are common for first-time homebuyers in Connecticut, as they provide savings on the insurance costs associated with a mortgage, as well as “below-market” interest rates.
In addition to providing no upfront mortgage insurance costs and lower monthly mortgage insurance overall, these programs eliminate mortgage insurance premiums entirely when the borrower reaches 20 percent equity.
To qualify, you must be a first-time buyer or have not owned a home in the previous three years. The home must also be your primary residence, and there are income and purchase price limits within the programs.
Conventional Area Median Income Loan Program
Also offered through the CHFA, 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). The benefits of this mortgage include no upfront mortgage costs and lower monthly mortgage insurance costs. In addition, mortgage insurance premiums end completely when borrowers achieve 20 percent equity.
Eligible properties include single-family homes, townhomes, and Fannie Mae or Freddie Mac-eligible condominiums. Two- to four-unit homes are also eligible. Applicants must be first time home buyers who have not owned a home in the past three years. The home being purchased must be your primary residence.
Military Homeownership Program
Current members of the military and veterans who are first-time homebuyers have a mortgage option available from the CHFA. The Military Homeownership Program features 0.125 percent off a below-market interest rate, and is also available to unmarried, surviving spouses or civil union partners of a veteran who died as a result of military service or service-connected disabilities.
Like the HFA Advantage and HFA Preferred programs, the property must be your primary residence, and there are also income and sales price limits, depending on where the home is located. Eligible homes include single family homes, townhomes, condominiums that are FHA or VA-approved or Fannie Mae eligible.
Additional eligible homes include two- to four-unit homes and new construction two-family homes that meet FHA energy efficiency guidelines.
Police Homeownership Program
If you’re a municipal police officer looking to buy a home in the city or town where you work, or a Connecticut state police officer, the Police Homeownership Program can help make your dream a reality. The program offers mortgages with interest rates that are an additional 0.125 percent off below-market rates, and is available to first-time homebuyers or those who have not owned a home for the prior three years. Funding is available for primary residences only, and there are sales price and income limits, as well.
Teachers Mortgage Assistance Program
The Teachers Mortgage Assistance Program also features 0.125 percent off the below-market interest rates offered by the CHFA. Designed to assist teachers with becoming homeowners, the program is available to first-time buyers or those who have not owned a home in the past three years.
Like other CHFA programs, the home must be your primary residence. In addition, borrowers must be employed as a teacher in a “priority” or “transitional” school district, a list of which can be found on CHFA.org; or, employed by the state in a technical high school in one of these districts.
The Teachers Mortgage Assistance Program is also open to 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 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 make homeownership possible by providing a low interest rate.
To qualify, you must be able to provide proof of the disability, and be a first-time homebuyer or have not owned a home in the past three years. In addition, the home must be your primary residence. As with other CHFA programs, there are also income and sales price limits.
Eligible homes include existing single family homes, new construction homes including single family homes and in target areas two-unit homes. Existing two- to four-unit homes are also eligible. Condominiums and townhomes are also eligible.
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.
Benefits of the program include low interest rates and down payment assistance. All borrowers must meet credit, income and employment requirements and be first-time home buyers who have not owned a home in the past three years.
Single-family homes, townhouses, and Planned Unit Developments (PUDs) are all eligible under the program. FHA-approved and Fannie Mae-eligible condominiums also qualify as do two- to four-unit homes that have been used as residences for the past five years.
Mobile Home Mortgage Program
If it’s a mobile home you’d like to purchase, there’s a homebuyer program for that, as well. The CHFA Mobile Home Mortgage Program offers low interest rates and low closing costs. As with other programs, there are income and purchase price limits to participate, and the mobile home must be your primary residence.
The funds can be used to finance the purchase of a single or double-wide manufactured home in a Connecticut state-licensed mobile park.
Unlike the other programs offered by the CHFA, this mortgage is open to prior homeowners but applicants cannot own any other property, including second homes, investment or commercial property.