Current Vermont Mortgage and Refinance Rates
Mortgage interest rates currently average 6.06% for 30-year fixed loans and 5.22% for 15-year fixed loans.
Refinance rates in Vermont
30-year FIXED
Current refinance rates are averaging:
6.48%
15-year FIXED
Current refinance rates are averaging:
6.06%
If you’re hoping to refinance your mortgage and you live in the Green Mountain State, there are several options available to you:
- Rate-and-term refinance: Rate-and-term refinances let you replace your existing mortgage with a new one that has better terms — usually a lower interest rate, a different loan term or both. Choosing a lower interest rate or a longer loan term can be a smart way to lower your monthly mortgage payment, while choosing a shorter term can help you pay off your loan faster and save on interest charges at the same time. Still, it’s important to note that refinance rates tend to be higher than purchase rates in Vermont.
- Cash-out refinance: A cash-out refinance allows you to use your existing home equity to borrow more money than you owe on your current mortgage. You can then use the extra cash to pay for large expenses, like debt consolidation or tuition fees. However, be aware that cash-out refinance rates often trend higher than rate-and-term refinance rates.
- Conventional refinance: Conventional refinances aren’t backed by any government program. As a result, this type of refinance usually has higher rates than government-insured refinance programs.
- FHA refinance: FHA refinance loans are insured by the Federal Housing Administration (FHA). FHA loans are typically easier to qualify for than conventional loans, and FHA rates are usually lower than conventional refinance rates. However, know that if you select an FHA loan, there will likely be additional eligibility requirements as part of the underwriting process, including more stringent FHA appraisal guidelines than you’d probably find with a conventional loan program.
- VA refinance: Insured by the U.S. Department of Veterans Affairs (VA), access to VA loan refinances is one of the many benefits available to eligible military members and their spouses. As a rule of thumb, VA rates are typically some of the lowest rates on the market.
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast?
LendingTree’s current mortgage rate forecast states rates are likely to remain remain around 6.0% in early 2026 after three rate cuts by the Federal Reserve in late 2025.
High home prices and inflation paired with little expected changes in mortgage rates make it more difficult for people to invest in the housing market, especially as first-time homebuyers. For now, the best course of action for potential homebuyers is to improve their financial qualifications to get the lowest rate and monthly payment on their Vermont home loan.
How do I get the best mortgage rate for my Vermont home loan?
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.
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Working on your credit score
Out of all the factors on this list, your credit score will likely have the biggest impact on the mortgage interest rate you’re offered. Typically, the lowest rates are only offered to borrowers with at least a 780 score. With that in mind, if your score is on the lower end, it may be a smart idea to spend some time boosting your credit score before applying for a home loan. -
Reducing your debt-to-income (DTI) ratio
Your DTI ratio tells lenders how much of your income goes toward paying off debt each month. It also indicates how comfortably you can manage a new mortgage payment. Mortgage lenders typically want you to have a maximum 43% ratio or less. So if your current ratio needs work, consider finding ways to increase your income or pay down your debts. -
Deciding on a single-family home
Single-family homes are usually given the lowest interest rates out of any property type. Their rates are often lower than the rates offered on manufactured homes, multifamily homes, vacation homes or investment properties. -
Opting into mortgage points
Adding a handful of mortgage points to your closing costs is another way you could reduce your interest rate. This method lets you pay for some of your interest charges upfront, reducing the rate you’ll pay over the life of the loan. Buying points can typically reduce your rate by up to 0.25 percentage points for each mortgage point you purchase, with each point usually costing about 1% of your mortgage amount. -
Collecting multiple loan estimates
LendingTree data finds that gathering loan estimates from three to five lenders before applying for a loan can also help you secure a lower rate and potentially save thousands of dollars in interest charges.
Read more about our picks for the best mortgage lenders.
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.
Vermont home loan programs
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.
VHFA MOVE
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
VHFA ADVANTAGE
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
VHFA ASSIST
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 Generation Homebuyer Program
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
Learn about different types of VT mortgage loans
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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.