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Compare Current Mortgage Rates in Vermont

Vermont mortgage rates are influenced by a variety of factors, but there are things you can do to get a lower rate and make homeownership more attainable.

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    Interest rates reflect the cost of borrowing. Not only do they help determine the cost of a monthly payment, but they also determine the overall cost of buying a home.

    Each payment goes toward the loan principal, which is the amount borrowed, and interest, which is the amount paid to the lender. Unless paying by cash, homebuyers must account for both principal and interest to understand a home’s true cost.

    You can prepare yourself for homeownership by learning about possible ways to lower your mortgage rate in Vermont, how rates are determined, and what homeownership assistance programs Vermont offers.


    How are mortgage rates determined in Vermont?

    Mortgage rates in Vermont are determined the same way as they are throughout the rest of the United States. The Federal Reserve plays a large role by controlling the federal funds rate, which is the rate it recommends banks lend to one another for overnight loans. This influences the prime rate, which is what the best-qualified borrowers receive. The prime rate is often about 3% higher than the federal funds rate. 

    One of the Federal Reserve’s jobs is to fight inflation, which is influenced by factors such as global economic conditions. However, local economic conditions can also influence mortgage rates. It’s possible for an area with a strong housing demand to have higher mortgage rates than one that doesn’t.

    Also remember that borrowers’ personal credit histories and current financial situations play significant roles, too. Borrowers who pay their bills on time and have a low amount of debt often receive better rates than their peers.

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    Does Vermont have a first-time homebuyer program?

    If you need financial assistance to buy your first home, Vermont has first-time homebuyer programs for qualified applicants who may be struggling to save enough money for a down payment:

    • Vermont Housing Finance Agency (VHFA): VHFA offers five programs to help homebuyers in Vermont: Move, Advantage, Move MCC, Down Payment Assistance (ASSIST), and First Generation Homebuyer Program. The ASSIST program offers a 0% deferred loan that is only repaid once the home is sold or refinanced or when the mortgage is paid off. Borrowers may qualify for up to $15,000 in assistance if they meet the income limits for their county.
    • City of Burlington’s Buy a Home program: The Buy a Home program is for homebuyers interested in purchasing a multi-unit property in the Old North End, Lakeside, or King Street neighborhoods. Qualified applicants may receive a $10,000 loan that comes with deferred payments and zero interest. Income must not exceed 80% of the area median income, and buyers may not displace any current tenants after purchasing, nor can they increase rent prices for one year. After one year, rent may not increase more than 3% each year for up to four years. 
    • Windham & Windsor Housing Trust: After completing a homebuyer education workshop, which can be done either in person or online, qualified applicants may receive a grant to put toward their down payment. Instead of repaying any assistance received, homebuyers agree to shared equity, which limits how much they can sell their home for in the future. As a result, the home remains affordable to future low-income families.


    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

    30-year fixed rate

    6.875 %

    6.914 %

    20-year fixed rate

    6.375 %

    6.424 %

    15-year fixed rate

    6.000 %

    6.061 %

    10-year fixed rate

    5.875 %

    5.961 %

    Last updated on Jun 23, 2024. These rates are based on the assumptions shown here. Actual rates may vary.

    How do I get the best mortgage rate in Vermont?

    To get the best mortgage rate in Vermont, consider the following strategies:

    • Lower your debt-to-income ratio (DTI): Your debt-to-income ratio compares your monthly debts to your monthly income. The lower the ratio, the better. Not only do lenders use DTI to assess your credit risk and maximum loan amount, but they also use it to help determine your mortgage rate. 
    • Improve your credit score: Your credit score, which is determined by factors such as your payment history and debt, is also used by lenders to determine your credit risk. Time magazine reported that borrowers with lower credit scores are statistically more likely to have missed payments. To better your chances of receiving a lower mortgage rate, take steps to improve your credit score. 
    • Shop around: Some homebuyers are surprised when they receive very different mortgage rates from lenders when rate shopping. Fortunately, lenders are not in lockstep, so if you’re looking to lower your mortgage rate, shopping around may help. Keep in mind that lenders might ask to check your credit report, which involves hard inquiries. A hard inquiry can lower your credit score by a few points, but your score won’t be lowered by multiple inquiries as long as they happen within a set timeframe. FICO’s newest scoring model allows for a 45-day rate-shopping window while Vantage only allows for 14 days.
    • Make a larger down payment: When you make a larger down payment, you reduce your loan-to-value ratio, which reduces your level of perceived risk to lenders. Because of this, you may receive a lower mortgage rate. 
    • Compare loans and loan terms: There are multiple loan types and loan terms you can choose when buying a home, and you may receive a better rate for choosing one loan type and term over another. Shorter loan terms, such as a 15-year loan, often have better rates than 30-year loan terms.

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    What type of mortgage can I get in Vermont?

    There are five types of mortgages you may want to consider: conventional, FHA, VA, USDA, and jumbo loans.


    • Description: Not insured by the federal government but follows guidelines by Fannie Mae and Freddie Mac. Typically requires mortgage insurance until 20% equity is reached and has stricter eligibility than FHA and USDA loans.
    • Down payment requirement: 3%
    • Minimum credit score: 620
    • Maximum loan amount: $766,550


    • Description: Government-backed with easier qualifications than conventional loans. Requires payment of mortgage insurance premium (MIP) for the life of the loan. MIP may be canceled with a 10% or more down payment and paid on time for 11 years.
    • Down payment requirement: 3.5%
    • Minimum credit score: 580 for a 3.5% down payment
    • Maximum loan amount: $498,257 for all counties except Chittenden, Franklin, and Grand Isle, which have a $517,500 limit


    • Description: For active and retired military personnel and their surviving spouses. Government-insured, no down payment or mortgage insurance is required, but there is a one-time funding fee.
    • Down payment requirement: 0%
    • Minimum credit score: Varies by lender; no minimum established by VA
    • Maximum loan amount: No limit if you have full entitlement


    • Description: Offered by the United States Department of Agriculture with both direct and guaranteed loans. Requires 0% down payment for qualified borrowers. Homes must be in USDA-defined rural areas. Includes upfront and annual fees.
    • Down payment requirement: 0%
    • Minimum credit score: Varies by lender; no minimum established by the USDA
    • Maximum loan amount: $414,000


    • Description: For homes exceeding conventional loan limits. Requires higher down payments and strict eligibility criteria.
    • Down payment requirement: 10% to 20% depending on the lender
    • Minimum credit score: Varies by lender
    • Maximum loan amount: No maximum amount, designed for high-value homes


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