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Buying a home in Connecticut
According to Zillow, the typical home value in Connecticut is a little higher than the US national typical value of $357,544. The typical home value in Connecticut is $360,182, and home values have increased 9.9% over the past year.
Historic mortgage rates for Connecticut
By looking at the average mortgage rates in Connecticut since 2010, you can see trends for 30-year fixed mortgages, 15-year fixed mortgages, and 7/1 adjustable mortgages:
Seeing how today’s rates compare to historic Connecticut mortgage rates may help you decide whether you’d be getting a good deal by getting a mortgage or refinancing now.
Mortgage calculator
Use our free mortgage calculator to see how today’s Connecticut mortgage rates will impact your monthly payments.
Mortgage Calculator
$1,161
Your estimated monthly payment
- Paying a 25% higher down payment would save you $8,916.08 on interest charges
- Lowering the interest rate by 1% would save you $51,562.03
- Paying an additional $500 each month would reduce the loan length by 146 months
Click on “More details” to understand how various rates could affect your long-term finances.
Connecticut first-time homebuyer programs
The Connecticut Housing Finance Authority offers several financial assistance programs, including the following:
- The HFA Advantage and HFA Preferred Loan Programs: Get a loan with reduced mortgage insurance costs, and you’ll stop paying private mortgage insurance when you gain 20% equity in your home. (Some lenders in the US make you wait until you have 22%, but these loans let you off the hook at the 20% mark.) The HFA Preferred program is available for multi-family homes, but the HFA Advantage program is just for single-family homes.
- Conventional Area Median Income Loan Program: If you have a low-to-moderate income, you can buy a home with no upfront mortgage insurance costs and discounted monthly insurance costs. The CHFA will cancel your mortgage insurance when you reach 20% equity in your home.
- Down Payment Assistance Program Loan: You must borrow at least $3,000, but you can’t borrow more than the minimum down payment for your home.
- FHA 203(k) Renovation Mortgage Program: Get a low interest rate on a loan that wraps up the cost of home repairs into your mortgage.
- Mobile Manufactured Home Loan Program: If you are buying a mobile home or manufactured home, you can get a low interest rate and reduced closing costs.
- Federal Housing Administration mortgage: You can get a down payment of 3.5% with a credit score of at least 580, or get a mortgage with a credit score between 500 and 580 with 10% down using this loan, which is also called an FHA loan.
- United States Department of Agriculture mortgage: These loans, also called USDA loans, can be useful if you are a low-to-moderate income borrower looking to buy a home in a rural or suburban area.
- Veterans Affairs mortgage: These mortgages, also called VA loans, are for active-service military members or veterans, or spouses of members who have died and can provide lower interest rates than conventional mortgages.
The Housing Development Fund offers down payment assistance for residents of Washington, Connecticut. Receive a no-interest loan for up to $10,000, and pay it back over 30 years.
Refinancing your mortgage in Connecticut
Rates are at historic lows right now, so it could be worth it to switch your current mortgage for one with a lower rate — especially if the new rate would be significantly lower.
You don’t necessarily need to refinance with the same lender you used for your initial mortgage. A different company may offer you a better deal this time around. Shop around for a lender who will offer the lowest rate based on your credit score and debt-to-income ratio, and the one that charges relatively low fees.
How to get a low interest rate on your mortgage
Here are some tips for landing a good interest rate on your mortgage:
- Save for a down payment. With a conventional loan, you may be able to put down as little as 3%. But the higher your down payment, the lower your rate will likely be. Rates should stay low for a while, so you probably have time to save more.
- Increase your credit score. Many lenders require a minimum credit score of 620 to receive a mortgage. But the higher your score, the better your rate will be. To improve your credit score, be sure to pay all your bills on time. You can also pay down debts or let your credit age.
- Lower your debt-to-income ratio. Your DTI is the amount you pay toward debts each month, divided by your gross monthly income. Most lenders want to see a DTI of 36% or less, but an even lower DTI can result in a better rate. To improve your DTI, pay down debts or consider opportunities to increase your income.
- Choose a federally backed mortgage. If you’re eligible, you might consider a USDA loan (for low-to-moderate income borrowers buying in a rural area), a VA loan (for military members and veterans), or an FHA loan (not designated for any particular group). These loans typically come with lower interest rates than conventional mortgages. As a bonus, you won’t need a down payment for USDA or VA loans.
Improving your financial situation and choosing the right type of mortgage for your needs can help you get the best interest rate possible.
Mortgage and refinance rates by state
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