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Compare Current Mortgage Rates in Connecticut

The higher your interest rate, the more your mortgage payment will be. Connecticut lenders look at a variety of sources when setting interest rates for customers.

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    Part of your monthly mortgage payment is interest, and your interest rate affects the amount you pay. The higher your interest rate, the more your mortgage payment will be each month. The lower your interest rate, the less your payment will be. For example, on a 30-year fixed-rate $350,000 loan with an interest rate of 6%, you’d pay about $2,098 each month. With an interest rate of 8%, you’d pay about $2,568 each month. In this case, those two percentage points equal $470 a month.


    How are mortgage rates determined in Connecticut?

    Lenders in Connecticut look at a variety of sources when setting interest rates for customers:

    • The Federal Reserve: The Federal Reserve sets the federal funds rate. This is the rate lenders charge each other. If the federal funds rate is high, mortgage rates will reflect that, and if the federal funds rate is low, mortgage rates should be lower.
    • Economic conditions: In a robust economy, people are in a better financial position to buy a house. This tends to lead to more demand for home loans. Increased demand for home loans usually means a rise in interest rates. In a slow economy with fewer people buying homes, interest rates should reflect that and go down.
    • Inflation: Inflation occurs when there is more money in circulation than there are products to buy. With inflation, consumers need to spend more money to buy goods and services. It is also more expensive for banks to borrow money from each other, and they compensate by increasing the rate of mortgage loans.

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    Does Connecticut have a first-time homebuyer program?

    Yes. Connecticut has several first-time homebuyer programs.

    The Connecticut Housing Finance Authority (CHFA) has resources and a program for first-time homebuyers:

    • HFA Advantage and HFA Preferred: CHFA offers these mortgages to first-time buyers or repeat buyers who want to buy a home in a targeted area. Through its network of nearly 70 approved lenders, the housing authority also offers competitive interest rates. You must attend a homebuyer class, meet income requirements, and use the home as your primary residence. 
    • Time to Own – Forgivable Down Payment Assistance Loan: This program helps first-time homebuyers with down payment and closing costs. You can supplement your funds by borrowing up to 20% of the down payment and up to 5% of the closing costs. This loan is forgivable after 10 years of living in the home. Borrowers are eligible for a loan amount up to $50,000 in high- or very-high-opportunity areas and up to $25,000 outside of those areas. You must provide proof you’ve lived in Connecticut for the last three years and get a CHFA-backed loan to qualify. Apply by contacting a lender that participates in the program.

    Another first-time homebuyer program is available through the Housing Development Fund (HDF), a counseling agency approved by the U.S. Department of Housing and Urban Development (HUD). Homebuyers can get free homebuyer education and counseling services designed to teach them how to buy and keep a home. Several down payment assistance programs are also available through HDF:

    • SmartMove CT & NY: Offers a 3% down payment assistance loan
    • Live Where You Work CT: Up to an additional $25,000 down payment assistance loan at 0% interest if you buy your first home in the city where you work
    • HDF Homeownership Equity Fund CT: For black, indigenous, and people of color, up to an additional $20,000 down payment assistance loan at 0% interest

    There are also national first-time homebuyer programs:

    • Habitat for Humanity: This program helps build houses for families in need around the world. Homebuyers, along with volunteers, help build their own home that has an affordable mortgage.
    • Freddie Mac Home Possible mortgage: This mortgage is for very-low- to low-income borrowers. The down payment requirement is 3% and the sources of funds can be flexible. For example, co-borrowers don’t need to live with you if you’re buying a one-unit residence.
    • Homeowner vouchers: This is for low-income buyers in the Housing Choice Voucher (HCV) program. You could use your voucher to buy a home and then receive monthly assistance for home expenses.
    • Government-backed home loans: You can get help buying a home through the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and the United States Department of Agriculture (USDA). 


    National mortgage rates by loan term

    Mortgage rates drop or rise daily, reacting to changing economic conditions, central bank policy decisions, and investor sentiment. The table below shows recent trends in mortgage rates.

    ProductInterest rateAPR

    Last updated on Jun 17, 2024. These rates are based on the assumptions shown here. Actual rates may vary.

    How do I get the best mortgage rates in Connecticut?

    You can’t control all the factors lenders use to determine the interest rate on a loan, such as the Federal Reserve, economic conditions, and inflation. But there are several factors you can control to get a better rate.

    • Improve your credit score: Your credit score plays a large role in the interest rate you’ll get. The higher your score, the lower your interest rate should be, and vice versa. FICO credit scores of 800 to 850 are exceptional, 740 to 799 are very good, 670 to 739 are good, 580 to 669 are fair, and 579 and below are poor. You can get a copy of your credit report by visiting That will help you determine what you might need to do to improve your credit score so that it’s as high as possible before you apply for a mortgage.
    • Down payment: A larger down payment usually means you get a lower interest rate. The more money you have invested in the home, the less risky you appear to lenders. You often need to put down at least 20% to get the lower rate.
    • Compare lenders: It’s a good idea to contact several lenders and ask for a loan estimate. You’ll be asked to give some basic information, such as your name, income, Social Security number, address of the home you’re interested in buying, the home’s price, and how much you want to borrow. Your credit score might go down a few points from the initial inquiry, but as long as you get all your loan estimates within 45 days, your credit score will not be affected again.
    • Get a pre-approval letter: Once you’ve picked a lender and are ready to buy within 30 to 60 days, you can apply for a pre-approval letter. Your lender will tell you which documents it will need. Then, you or your real estate agent can show this letter to home sellers to show you’re a serious homebuyer. The pre-approval letter is not the loan. You’ll still need to apply for that once you’re under contract.

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    What type of mortgage can I get in Connecticut?

    Connecticut residents have a variety of mortgage types available to them:


    • Description: Any mortgage loan that is not insured by the government. The loan amount must be less than $766,550 (as high as $1,149,825 in high-cost areas).
    • Qualifications: Minimum down payment of 3%, minimum credit score of 620, DTI below 43%.


    • Description: Loan amount higher than $766,550, available only in certain counties.
    • Qualifications: Typically credit score of 700 or higher, DTI below 43%, and 20% or more down payment is often required.


    • Description: Part of HUD, provides mortgage insurance on loans. Lenders approved by the FHA make the loans.
    • Qualifications: Down payment of 3.5%, most lenders allow a DTI of less than 43%, typically a FICO score of 580 or more to qualify for 3.5% down.


    • Description: Home loan program for service members, veterans, and surviving spouses. No down payment is required.
    • Qualifications: You need a COE from the VA.


    • Description: Helps people in rural areas buy a home. No down payment is required.
    • Qualifications: Income must not exceed 115% of area median income, must live in the residence, home must be in an eligible rural area.


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