Vermont Mortgage Rates and Trends in VT

The current mortgage rates in Vermont are influenced by the state's stable economy and low unemployment rate, which has led to a surge in housing demand and prices.

Homebuyers in Vermont can expect to pay around 4.5% to 5% interest on a 30-year fixed-rate mortgage.

The Vermont housing market is particularly competitive in areas like Burlington and Montpelier, where prices have risen significantly in recent years.

According to data from the Vermont Association of Realtors, the median home price in Vermont is around $280,000.

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As of Tuesday, February 4, 2025, the current mortgage interest rates in Vermont are 7.19% for a 30-year fixed mortgage and 6.44% for a 15-year fixed mortgage. This is a significant difference from the 6.852% for a 30-year fixed and 5.895% for a 15-year fixed mortgage as of today's rate.

If you're looking to buy a home in Vermont, you should be aware that the median single-family home price in the state is $381,042, according to Zillow's Home Values Index. This is just slightly above the national median of $344,157.

To give you a better idea of the current mortgage rates in Vermont, here are some key rates to keep in mind:

You can also find current average rates for a 15-year fixed mortgage refinance at 6.79%.

A 0.1 difference in an interest rate can save thousands of dollars over the life of the loan. Even a small difference can add up.

To find the best rate, it's essential to compare mortgage offers from multiple lenders. You can use Bankrate's mortgage rate table to easily compare personalized rates from trusted lenders.

Research and decide what type of mortgage might be best for you, given your finances and your short- and long-term goals. Gather necessary documentation to provide to lenders, including income, assets, debts, and employment verification.

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree's network partners. For example, the current average rate for a 15-year fixed mortgage refinance in Vermont is 6.79%.

To get the best mortgage rate, consider working on your credit score, reducing your debt-to-income (DTI) ratio, and deciding on a single-family home. You can also opt into mortgage points to reduce your interest rate.

Here's an interesting read: Average 30-year Mortgage Rates Are Creeping Higher as Inflation Persists.

Here are some key factors to consider when comparing mortgage rates in Vermont:

By considering these factors and comparing mortgage offers from multiple lenders, you can find the best rate for your Vermont mortgage.

In Vermont, homeowners have seen a significant increase in tappable equity, with the average U.S. borrower seeing an equity increase of about $24,000 year over year in the fourth quarter of 2023.

If you're looking to refinance your mortgage in Vermont, you have several options to consider. You can choose from rate-and-term refinance, cash-out refinance, conventional refinance, FHA refinance, or VA refinance.

The current 30-year fixed mortgage refinance rates are averaging 7.41%, which is a rate that's higher than purchase rates in Vermont.

Here are some key considerations for each type of refinance:

Refinance rates in Vermont have more than doubled since the pandemic, but many homeowners have significant equity to tap into. The average U.S. borrower saw equity increase by about $24,000 year over year in the fourth quarter of 2023, according to CoreLogic.

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There are several options available for Vermont homeowners looking to refinance their mortgage. Rate-and-term refinances, for example, allow you to replace your existing mortgage with a new one that has better terms.

Rate-and-term refinances can be a smart way to lower your monthly mortgage payment, but be aware that refinance rates tend to be higher than purchase rates in Vermont. Current 30-year-fixed mortgage refinance rates are averaging 7.41%.

A cash-out refinance can help you use your existing home equity to borrow more money, but be aware that cash-out refinance rates often trend higher than rate-and-term refinance rates. This type of refinance can be useful for large expenses like debt consolidation or tuition fees.

If you're eligible, government-insured refinance programs like FHA and VA refinance loans may offer lower rates and more favorable terms. FHA rates are usually lower than conventional refinance rates, but there may be additional eligibility requirements.

Here are some common types of refinance options:

If you're considering refinancing your mortgage, you have several options to choose from.

One option is to refinance with a conventional loan, which typically requires a credit score of at least 620 and a debt-to-income ratio of no more than 45 percent.

You'll also need to make a down payment of at least 20 percent to avoid paying for private mortgage insurance (PMI).

Another option is to consider an FHA loan, which is insured by the Federal Housing Administration. This type of loan requires a credit score of at least 580 with a 3.5 percent down payment.

If you're a veteran or active-duty military member, you might be eligible for a VA loan, which doesn't require a down payment or mortgage insurance, but does require a funding fee.

Here are the key differences between these options:

Vermont's mortgage landscape is shaped by its unique market trends and statistics. The most popular cities for mortgages are Burlington, Essex Junction, South Burlington, Rutland, and Colchester.

To give you a better idea of the state's affordability, the most affordable counties are Essex, Orleans, Caledonia, and Rutland, based on median home value.

The median home sales price in Vermont as of March 2024 was $451,667, while the median home value was $381,042.

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Mortgage rates are difficult to predict, but the current consensus is for rates to remain well above historical lows for the foreseeable future.

In Vermont, mortgage rates are expected to stay high, as they are in many other parts of the country.

Historical lows for mortgage rates are a thing of the past, and it's unlikely that rates will drop back down to those levels anytime soon.

If you're planning to buy a home or refinance your current mortgage, it's essential to understand that high mortgage rates will likely be the norm for a while.

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In Vermont, the most popular cities for mortgages are Burlington, Essex Junction, South Burlington, Rutland, and Colchester.

The median home sales price in Vermont as of March 2024 is a significant $451,667.

Homeownership rates in Vermont are relatively high, with a rate of 74.9% in Q4 2023.

Some of the most affordable counties in Vermont are Essex, Orleans, Caledonia, and Rutland, based on their median home values.

Here's a breakdown of the most affordable counties in Vermont:

Rutland, Vermont has a median home value of $204,897. The median household income for Rutland, VT is $60,623, which can afford a home valued at approximately $290,598.

The home price you can afford to buy based on household income in Rutland is 142% of the median home value, which means housing prices are average. This ranking is consistent with the FREEandCLEAR Housing Affordability Index, which considers Rutland's housing market to be average.

Rutland ranks 2 out of 14 counties in Vermont and 2,090 out of 3,142 counties in the United States for housing affordability. This suggests that while housing in Rutland may be affordable for some, it may be a challenge for others.

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Taxes can be a significant factor in homeownership. Vermont charges transfer taxes on real estate, which the buyer often pays.

In Vermont, the transfer tax rate is 0.5% on the first $100,000 of the home's value. The tax rate increases to 1.25% for the remaining value.

Homeowners can deduct mortgage interest from their taxable income when filing federal income taxes. This deduction is also available when paying state income taxes in Vermont, following federal guidelines.

The federal government allows homeowners to deduct mortgage interest, which can provide significant tax savings.

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