Vermont Mortgage and Refinance Rates

Vermont mortgage overview

As of Thursday, June 8, 2023, current mortgage interest rates in Vermont are 7.06% for a 30-year fixed mortgage and 6.53% for a 15-year fixed mortgage. Vermont was home to just over 645,000 residents, the second-least populated state in the U.S., according to Census data. The median home value in Vermont is $386,285, slightly higher than the U.S. average, according to Zillow.

Since its founding in 1974, the Vermont Housing Finance Agency (VHFA) has helped 29,000 low- to moderate-income residents in the state purchase an affordable home.

First-time homebuyer programs in Vermont

In Vermont, qualifying first-time homebuyers have access to a variety of programs that can help them afford a home. These include:

• ASSIST: The ASSIST program, administered by the VHFA, provides up to $5,000 for first-time homebuyers to use toward their down payment and closing costs in the form of a zero-percent interest, no-monthly-payment loan. The loan is repaid when the borrower pays off their mortgage, or refinances or sells their home. Borrowers must be using the VHFA Advantage, MOVE or MOVE Mortgage Credit Certificate (MCC) programs to qualify for the assistance, and must meet certain maximum asset and homebuyer education requirements.

• MOVE: The MOVE VHFA program allows qualifying applicants to save up to $825 on the Vermont property transfer tax at closing, take advantage of a lower down payment and get lower monthly mortgage insurance. Borrowers must be first-time homebuyers (or not have owned a home in the past three years) if purchasing in Addison, Bennington, Chittenden, Grand Isle and Windsor counties, and must complete a homebuyer education course to qualify.

• MOVE Mortgage Credit Certificate (MCC): Offered by the VHFA, this program combines the benefits of the MOVE program and a Mortgage Credit Certificate (MCC), allowing borrowers to claim up to $2,000 in federal tax credits per year, as well as save up to $825 on the state’s property transfer taxes. Additional eligibility requirements apply, including income and purchase price limits, and buyers must complete homebuyer counseling and an education course to qualify.

Vermont mortgage refinancing

If you’re considering refinancing your mortgage, private lenders, banks and mortgage brokers are all options. The VHFA does not offer any programs specifically for refinancing.

Keep in mind you don’t have to refinance through the same lender who holds your current mortgage. When you’re ready to refinance, identify your goals and shop around to make sure you’re getting the best possible rate and terms. Note that some homebuyer assistance programs may be void upon refinancing, so consult with your lender before moving forward.

Vermont mortgage resources

• Vermont first-time homebuyer resources
• Vermont loan limits by county
• Vermont mortgage lenders