If you’re hoping to refinance your mortgage and you live in the Green Mountain State, there are several options available to you:
Current 30 year-fixed mortgage refinance rates are averaging: 7.14% Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
The current average rate for a 15-year fixed mortgage refinance is: 6.53% Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast for 2024?Our current mortgage rate forecast shows rates declining from their 2023 highs. Since hitting a peak of 7.79% in October 2023, rates have been steadily trending downward. They even ended the year a full percentage point lower than the peak.
Similar drops are likely to continue throughout the year, according to our 2024 housing market predictions. This prediction is based on a series of anticipated rate cuts from the Federal Reserve during the second half of the year.
Current market conditions are only one of the many factors used to determine mortgage rates — there are others that are within your control.
Here are some things you can do to ensure you’re offered your best mortgage rate when it’s time to apply for a home loan.
Read more about our picks for the best mortgage lenders.
When should I lock in my mortgage rate?As you might be able to guess, a mortgage rate lock ensures that your rate stays the same until you can close on your new home. The best time to ask for a rate lock is after your chosen lender officially approves your loan application.
Covering the upfront costs of buying a home can be a major obstacle for many homebuyers. Luckily for Vermonters, the Vermont Housing Finance Agency (VHFA) offers many programs aimed at making it easier to shoulder these expenses.
Available to first-time homebuyers who intend to purchase a home in the Green Mountain State and use it as their primary residence, the VHFA MOVE program offers 30-year, fixed rate mortgage loans at competitive interest rates. This program can also be combined with available down payment assistance (DPA) programs.
Who qualifies?Borrowers must:
Be a first-time homebuyer
Meet the program’s income limits
Complete a homebuyer education course
Have a minimum credit score between 640 and 680
If you make too much money to qualify for a VHFA MOVE loan, you may qualify for a VHFA ADVANTAGE loan instead. This program boasts higher income limits than the MOVE program and waives the first-time homebuyer requirement, unless you’re combining the loan with an available down payment assistance program.
Who qualifies?Borrowers must:
Meet the program’s income limits
Complete a homebuyer education course
Have a minimum credit score between 640 and 680
First-time homebuyers with less than $30,000 in liquid assets may qualify for VHFA ASSIST, the housing authority’s main down payment assistance program (closing costs can also be covered by this program). The program offers $10,000 to $15,000 in down payment assistance depending on income.
It’s offered in the form of a 0% interest, deferred second mortgage loan, which you’ll repay when you sell your home, pay off your mortgage or refinance your loan.
Who qualifies?Borrowers must:
Use a VHFA loan program for their first mortgage
Be a first-time homebuyer
Have less than $30,000 in combined liquid assets
First-time homebuyers who grew up in foster care, or whose parents never owned a home while they were growing up, may qualify for an additional $15,000 in down payment assistance through the First Generation Homebuyer program. This is a grant program, which means the funds won’t need to be repaid. The funding can also be combined with the VHFA ASSIST program.
Who qualifies?Borrowers must:
Use a VHFA loan program for their first mortgage
Be a first-time homebuyer
Have been in foster care, have parents who have never owned a home or have parents who lost a home to foreclosure
→ Vermont conventional loans: If you have a strong credit score and low DTI ratio, there’s a good chance that you may qualify for a conventional loan. These loans are usually the most sought-after mortgages because they follow minimum mortgage requirements set by Fannie Mae and Freddie Mac.
→ Vermont FHA loans: FHA qualifying requirements are typically more lenient than the qualifying requirements for conventional loans. For example, as long as you can make a 10% down payment, you’ll only need a 500 credit score to qualify for an FHA loan. However, you can pay a minimum of 3.5% down if you have at least a 580 score.
→ Vermont VA loans: Vermont’s military members may want to think about applying for a VA loan. For those who qualify, VA loans have some unique benefits, including no down payment or mortgage insurance requirements. Note, however, that participating lenders can still impose their own unique lending criteria.
→ Vermont streamline refinances: Borrowers who need to refinance their government-backed loan may want to consider using the FHA streamline refinance or VA interest rate reduction refinance loan (IRRRL) programs. These programs allow those with existing FHA or VA loans to refinance their mortgage while benefiting from a simplified underwriting process.
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