Vermont Mortgage and Refinance Rates

Current mortgage rates in Vermont

As of Wednesday, May 14, 2025, current mortgage interest rates in Vermont are 6.79% for a 30-year fixed mortgage and 6.21% for a 15-year fixed mortgage.

Despite the Federal Reserve cutting rates at three consecutive meetings last year, mortgage rates climbed, beginning 2025 above 7 percent. Following a brief dip in early April, rates are hovering near that 7 percent mark again. While mortgage rates are hard to predict and change daily based on many factors, experts think they'll spend much of the remainder of 2025 in the 6 to 7 percent range.

Refinance rates in Vermont

While mortgage refinance rates have more than doubled since the pandemic, some homebuyers who locked in higher rates within the last few years might get the chance to refinance to a lower rate this year if rates swing low enough. In addition, many Vermont homeowners have much more tappable equity now: the average U.S. borrower saw their equity increase by about $5,700 year over year in the third quarter of 2024, according to Cotality. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

National mortgage rates by loan type

Vermont mortgage rate housing market statistics and trends

High mortgage rates and home prices can make it challenging to buy a home in Vermont and nationwide. While mortgage rates are difficult to predict, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in Vermont. Here are some housing market stats to help guide your search for a home in Vermont:

• Most popular cities: Burlington, Essex Junction, South Burlington, Rutland, Colchester
• Most affordable counties (based on median home value): Caledonia, Essex, Orleans, Rutland
• Median home sales price, Feb. 2025: $355,083
• Median home value, March 2025: $388,919
• Homeownership rate, Q4 2024: 73.8%

Sources: Zillow, ATTOM, U.S. Census Bureau

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 $10,000 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 $1,735 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.

How to find the best mortgage rate in Vermont for you

Additional Vermont mortgage resources

• Vermont loan limits by county: Get the limits for your city or county.
• Vermont mortgage lenders: See who offers what around the state.
• Best homeowners insurance in Vermont: Compare the policies around the state.

Meet our Bankrate experts

Written by: Andrew Dehan, Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Read more from Andrew Dehan

Edited by: Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English.

Read more from Laurie Richards