Best Current Mortgage Rates in Vermont

Vermont may be known as the largest producer of maple syrup in the country and the birthplace of the famous Ben and Jerry’s ice cream, but it’s also a great destination for future homeowners to start searching for their next house. Zillow reported that the current market temperature in Vermont is “very hot” based on three major metrics: sale-to-list price ratio, the prevalence of price cuts on home listings and time spent on the market.

Currently, the median home value in Vermont is $204,400. In the last year, home values have risen 5.1 percent and they’re predicted to hike another 1.4 percent by 2020. Despite the fact that 8.9 percent of homes in Vermont have negative equity and 1 percent are delinquent on mortgages, the health of the market in this state is in good condition.

There are various factors that can impact current mortgage rates across The Green Mountain State, which is important for future homebuyers to keep in mind as they search for a home loan. Let’s take a closer look at some of the current mortgage and refinancing rates in Vermont, as well as some tips on lenders to consider and how to get the best rate.

Current Mortgage Rates in Vermont

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Mortgage Rate Factors in Vermont

There are many determinants that can impact mortgage and refinancing rates, potentially making the difference in saving and spending thousands every year. Borrowers can benefit from comparing offers and loans based on these factors. Let’s take a closer look at some of the key elements that could have a significant effect on the mortgage and refinancing rates in Vermont:

Credit score: Credit scores have a considerable impact on rates, closing costs, monthly payments, and even loan eligibility. According to the Lending Network, here’s what borrowers can expect for loan rates based on their credit scores:

  • 579 and lower – If approved, rates could be 2 percent higher than the lowest rate
  • 580-619 – Interest rates will likely be 1 percent higher than the lowest rates available
  • 620-679 – Rates could be .5 percent higher at this credit score range
  • 680-739 – Rate isn’t impacted much at this range
  • 740 and higher – Access to the best rates offered by the mortgage company

Loan term: The life of a loan can vary based on the amount of time the borrower has to pay it off. The most common terms are 15 and 30-year mortgage or refinance loans. A mortgage that’s under a longer-term will have a higher interest rate due to the risk it creates for the lender.

Interest rate type: While there are various types of loans, most come in fixed or adjustable-rate options. A fixed-rate loan locks borrowers at the same rate throughout the life of the loan. An adjustable-rate loan is more flexible and adjusts based on the health of the market.

Lender competition: The number of loan officers and companies available in the Vermont market can also impact mortgage options. Lenders are willing to offer competitive rates for borrowers to secure their business.

Loan size: When borrowers request a larger loan, there’s more risk for the lender. This can impact mortgage and refinancing rates, likely making them higher to reduce the lending risk. On the opposite side, those asking for less from a lender can benefit from a lower rate.

Down payment amount: The number of money borrowers is willing to put down on the house has a major impact on interest rates for home and refinancing loans. In general, a larger down payment equates to lower interest rates and lower monthly payments.

Other common factors that may contribute to the mortgage and refinance rates include local economy, home location, and property type.

How to Get the Best Mortgage Rates in Vermont

When borrowers settle for the first home loan they’re offered, there’s potential to miss out on rate-related savings that could’ve been used toward a down payment, home upgrades, saving for emergency future repairs, or even a family vacation, according to the Consumer Financial Protection Bureau.

Mortgage borrowers often fail to shop around and only apply to a single lender. Additionally, only about 20 to 41 percent of people rely on financial counselors and websites for information on mortgages. Doing more research and keeping options open can make a significant difference in loan interest rates.

To make the most of a home buying experience, borrowers should keep the following tips in mind to find the best mortgage and refinancing rates in Vermont:

Shop around

Data collected by LendingTree found that browsing for the lowest interest rate among lenders could save borrowers nearly $10,000 overtime. Homeowners should be willing to compare quotes among different companies to get an idea of which option aligns best with their future goals. Do the research and pay attention to details like interest rates, mortgage insurance, total monthly costs, and monthly principal.

Fill out more than one loan application

While it may seem like a tedious task, different lenders have various features and incentives available for borrowers at the close. This gives homebuyers a clear look into the details of each mortgage and refinancing options before making a decision on a lender. 

Consider all options

Different types of loans are available to borrowers based on the chosen lender. Of the different types, two of the most popular are fixed and adjustable-rate mortgages (ARMs). Borrowers who want the rate to remain the same throughout a loan’s life should select a fixed-mortgage rate, while those who are more open to fluctuation may consider an ARM.

Be willing to negotiate

Some borrowers are unaware that rates may be flexible up until closing. Borrowers should ask about fees and rates throughout the entire home buying process. It’s important to remember that certain items cannot be negotiated, such as taxes, recording fees and city, and county stamps, according to CFPB.

Recommended Mortgage Lenders in Vermont

There are several different companies borrowers can go through for a mortgage or refinance loan in Vermont. Here are some of the leading lenders to consider working within Vermont:

  • Bank of America: While Bank of America doesn’t have any loan officers to meet within Vermont, working with this company is still an excellent online option for first-time homebuyers. A low 3 percent down-payment option, as well as educational financial tools for borrowers, are some of the benefits of choosing a loan option from Bank of America.
  • Guaranteed Rate of West Dover: According to Value Penguin, Guaranteed Rate is considered one of the best online mortgage lenders in the nation. Basic information can help borrowers see what they qualify for within minutes. Borrowers can also benefit from access to the knowledge center, which gives homebuyers educational materials on how to walk through the mortgage and refinance process.
  • Spruce Mortgage: Specializing in residential mortgages, second home mortgages, investment property mortgages, and refinancing, Spruce Mortgage has an option for virtually anyone. Positioned as one of the top two realtor offices in Vermont state, Spruce stands behind its mission of loyalty, integrity, and creativity.
  • TD Bank: Ranked as the best lender for in-person service in Vermont, TD Bank has locations throughout the Green Mountain State offering mortgage and refinance loans to all types of borrowers no matter where they want to live. Open seven days a week, the convenience offered by TD Bank makes it a leading lender.
  • Navy Federal Credit Union: Serving military members from coast to coast, Navy Federal Credit Union offers various mortgage options with low-interest rates for active army, marine corps, navy, air force, coast guard, veterans and family members. Refinancing, second home financing, and investment property mortgages are also available.

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