Vermont Mortgage and Refinance Rates

Current mortgage rates in Vermont

As of Thursday, December 7, 2023, current mortgage interest rates in Vermont are 7.51% for a 30-year fixed mortgage and 6.82% for a 15-year fixed mortgage. As of August 2023, the median single-family home price in Vermont was $338,580, according to Zillow's Home Values Index.

Refinance rates in Vermont

Refinance rates are way up from historic lows, but a cash-out refinance still might make sense for you, especially if you’ve built up a substantial equity cushion. Use Bankrate’s mortgage refinance calculator to run the numbers.

Mortgage options in Vermont

If you’re looking to get a mortgage in Vermont, consider these loan options:

• Vermont conventional mortgages: To qualify for a conventional loan, you’ll need a credit score of at least 620 and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay for private mortgage insurance (PMI), as well.
• Vermont FHA loans: If your credit history disqualifies you from a conventional loan, you might be eligible for a loan insured by the Federal Housing Administration (FHA). For this type of mortgage, you’ll need a credit score of at least 580 with a 3.5 percent down payment. As with a conventional loan, if you put down less than 20 percent on an FHA loan, you’ll be on the hook for mortgage insurance.
• Vermont VA loans: If you’re an eligible veteran or active-duty member of the military, you might qualify for a mortgage backed 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.

First-time homebuyer programs in Vermont

If you’re a first-time homebuyer in Vermont, consider exploring the variety of programs offered through the Vermont Housing Finance Agency (VHFA), including:

• ASSIST: The program provides up to $15,000 for eligible first-time homebuyers to use toward their down payment and closing costs in the form of a zero-interest, no-monthly payment second loan, repaid when you pay off or refinance your mortgage or sell the home.

• MOVE: If you qualify for a MOVE mortgage through the VHFA, you could save up to $825 on the Vermont real estate transfer tax, as well as take advantage of a lower or no down payment and lower monthly mortgage insurance premiums.

• MOVE mortgage credit certificate (MCC): This program combines the benefits of the MOVE program and a mortgage credit certificate (MCC), which allows you to claim up to $2,000 in federal tax credits per year for the life of your mortgage.

Additional Vermont mortgage resources

• Vermont first-time homebuyer resources
• Vermont loan limits by county
• Vermont mortgage lenders
• Best homeowners insurance in Vermont 2023

How to find the best mortgage rate in Vermont for you

Rather than going right to your bank for a mortgage, compare loan offers from a few different lenders. This could help you uncover a lower rate, potentially saving you thousands in interest over time. Bankrate can also help you find the best mortgage deal in today’s volatile rate environment. As you shop around, keep these tips in mind:

Step 1: Strengthen your credit score

Long before you start looking for a mortgage lender and applying for a loan, give your finances a checkup, and improve your standing if needed. This means pulling your credit score and credit reports. You’re entitled to a free credit report from each of the three main reporting bureaus (Experian, Equifax and TransUnion), which you can get through AnnualCreditReport.com.

Step 2: Determine your budget

Get a handle on how much house you can afford. One rule of thumb many buyers use to figure out their price range is the 28/36 rule. Keep in mind that a mortgage lender could qualify you for a loan over your budget, but that would leave no room for unexpected expenses.

Step 3: Know your mortgage options

There are different types of mortgages, including conventional loans with as little as 3 percent down and government-backed loans. If you’re in the market for a jumbo loan, check Vermont’s county-by-county loan limits.

Step 4: Compare rates and terms from multiple lenders

Don’t settle on the first lender you talk to. Rate-shop with different lenders — banks, credit unions, online lenders and local independents — to ensure you’re getting the best deal on rates, fees and terms.

Step 5: Get preapproved for a mortgage

Get a mortgage preapproval with three or four different lenders. This’ll help you understand exactly what loan amount you’d qualify for if you were to apply, and prepare you to make offers on homes.