Connecticut Mortgage Rates

May 28, 2015 06:01 PM Eastern

Refinance rates now in BRIDGEPORT, CT [Change this]

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Home Price (Purchase)
When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
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Home Value (Refinance)
This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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Down Payment
The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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Credit Score
Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.

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Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

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Connecticut Mortgage Rates and Loan Options
Connecticut ranks among the smallest U.S. States based on its land area, though it ranks among the highest in population density within its centrally located metro areas.  Cities like Bridgeport, Hartford, New Haven, Middletown, and Stamford are known as much for their affluence as they are for their world class educational institutions such as Yale and Wesleyan University.

Connecticut, as a state, has the one of the highest median incomes in the country and one of the highest property tax rates to go along with it. The cost of living and the median sales price for homes in Connecticut are higher than most other areas of the country. As such, borrowers seeking government backed and insured loans are allowed higher maximum loan limits. Residents should keep this in mind when considering purchasing a home, and researching current CT mortgage rates. 

Mortgage Interest Rates for Connecticut FHA Insured Loans
The Federal Housing Administration (FHA) makes available higher loan limits for borrowers seeking to purchase homes in areas with a higher median home value and higher cost of living. These loan limits will depend on the area of CT in which you reside.

Other government backed loans, such as those made through conventional lenders for Fannie Mae or Freddie Mac, also have loan limits in each county. For information about current loan limits in Connecticut, please visit: https://entp.hud.gov/idapp/html/hicostlook.cfm.

For all government backed and insured loans, mortgage rates are set by lenders at the prevailing market rates.  The interest rate you will qualify for will ultimately be based upon your level of income and credit score.

Loans for New and First Time Homebuyers in CT
The Connecticut Housing Finance Authority, in conjunction with its lending partners, offers mortgages to first time homebuyers and those who have not had ownership interest in a home for the previous three years.  The loans are procured through the Homebuyer Mortgage program and are reserved for those buying moderately priced homes, and those buyers with low or moderate income, according to each city's respective median income limits.

Connecticut Mortgage Rates and Loans for Special Employment
Connecticut has a great reputation of taking care of its municipal workers and military veterans, with several loan programs available for special employment sectors, including:

• Members of the U.S. Military, Active Duty, Guard, Reserve or veterans who served in the US Armed Forces, and who were discharged or released under conditions other than dishonorable
• Municipal and State Police officers in designated areas of the State looking to purchase their first home
• Teachers working in priority or transitional school districts or teaching in a subject-matter shortage area.