Vermont Mortgage and Refinance Rates

Current mortgage rates in Vermont

As of Wednesday, December 25, 2024, current mortgage interest rates in Vermont are 6.88% for a 30-year fixed mortgage and 6.38% for a 15-year fixed mortgage.

As of March 2024, the median single-family home price in Vermont was $381,042, according to Zillow's Home Values Index — just slightly above the national median of $344,157. Home prices appreciated substantially in the state last year, but have seen some softening since.

Refinance rates in Vermont

While mortgage refinance rates have more than doubled since the pandemic, many Vermont homeowners have much more tappable equity now: the average U.S. borrower saw equity increase by about $24,000 year over year in the fourth quarter of 2023., according to CoreLogic. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

Vermont mortgage rate trends

While mortgage rates are difficult to predict, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in Vermont.

National mortgage rates by loan type

Mortgage statistics for Vermont

• Most popular cities: Burlington, Essex Junction, South Burlington, Rutland, Colchester
• Most affordable counties (based on median home value): Essex, Orleans, Caledonia, Rutland
• Median home sales price, Mar. 2024: $451,667
• Median home value, Mar. 2024: $381,042
• Homeownership rate, Q4 2023: 74.9%

Sources: Zillow, ATTOM, U.S. Census Bureau

Mortgage options in Vermont

If you’re looking to get a mortgage in Vermont, consider these loan options:

• Vermont conventional mortgages: To qualify for a conventional loan, you’ll need a credit score of at least 620 and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay for private mortgage insurance (PMI), as well.
• Vermont FHA loans: If your credit history disqualifies you from a conventional loan, you might be eligible for a loan insured by the Federal Housing Administration (FHA). For this type of mortgage, you’ll need a credit score of at least 580 with a 3.5 percent down payment. As with a conventional loan, if you put down less than 20 percent on an FHA loan, you’ll be on the hook for mortgage insurance.
• Vermont VA loans: If you’re an eligible veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee.

First-time homebuyer programs in Vermont

If you’re a first-time homebuyer in Vermont, consider exploring the variety of programs offered through the Vermont Housing Finance Agency (VHFA), including:

• ASSIST: The program provides up to $15,000 for eligible first-time homebuyers to use toward their down payment and closing costs in the form of a zero-interest, no-monthly payment second loan, repaid when you pay off or refinance your mortgage or sell the home.
• MOVE: If you qualify for a MOVE mortgage through the VHFA, you could save up to $825 on the Vermont real estate transfer tax, as well as take advantage of a lower or no down payment and lower monthly mortgage insurance premiums.
• MOVE mortgage credit certificate (MCC): This program combines the benefits of the MOVE program and a mortgage credit certificate (MCC), which allows you to claim up to $2,000 in federal tax credits per year for the life of your mortgage.

How to find the best mortgage rate in Vermont for you

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Additional Vermont mortgage resources

• Vermont loan limits by county: Get the limits for your city or county
• Vermont mortgage lenders: See who offers what around the state
• Best homeowners insurance in Vermont: Compare the policies around the state

Meet our Bankrate experts

Written by: Andrew Dehan, Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Read more from Andrew Dehan

Edited by: Troy Segal, Senior Editor, Home Lending

I’ve been writing and editing stories in the personal finance sphere for two decades, for publications like Business Week and Investopedia, covering everything from entrepreneurs to taxes. Since coming to Bankrate, I’ve concentrated on real estate, mortgages, renovations and other financial aspects of homeownership — helping people understand how a home isn’t just a place to live, but an investment that’s important to building and bequeathing wealth. 

Read more from Troy Segal