Overview of Connecticut Mortgages
With its colonial roots, seaside charm and quaint small towns, Connecticut is a dream location for many. The state’s mortgage rates fall in line with the national average, varying above or below only slightly.
The Connecticut counties’ conforming loan limits are mostly average, but FHA limits are higher.
National Mortgage Rates
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Connecticut Mortgage Rates Quick Facts
Historical Mortgage Rates in Connecticut
Connecticut mortgage rates have been coming in slightly lower than the national average for the past several years. Rates for 2016 in Connecticut are currently following that trend.
Connecticut Historic Mortgage Rates
|Year||Connecticut Rate||U.S. Rate|
Connecticut Mortgages Overview
Connecticut has a rich history with the homes to match. From colonial New Haven estates to Litchfield farmhouses, prices in Connecticut are going to be higher on average than the rest of the country. The average home goes for $244,775, which is more expensive than the nation’s average of $229,737, according to Zillow.
Connecticut Mortgage Rates
|Percentage of Homes||86.60%|
|Average Property Value||$196,531.05|
|Percentage of Homes||12.60%|
|Average Property Value||$92,314.53|
|Percentage of Homes||0.50%|
|Average Property Value||$200,607.11|
|Percentage of Homes||0.30%|
|Average Property Value||$85,758.89|
Every county in the state has a standard conforming loan limit of $417,000 except for Fairfield, which comes in at $601,450. However, FHA loan limits are higher than average in every Connecticut county.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
Whether a home was built before your grandma was born or it’s a couple years old, your best bet is to get a home inspection. Older homes especially are going to have creaky floors and leaks here and there, but once you close on your home, you are accepting it as-is. There are certain things sellers must disclose, but to preserve the integrity of the sale, buyers should find out everything possible to protect themselves from purchasing a money pit.
30-Year Fixed Mortgage Rates in Connecticut
Weighing your mortgage options in the Constitution State? 30-year fixed-rate mortgages are the most common type of home mortgage. They are a good fit for buyers who plan to stay in their homes for a long time. Fixed-rate mortgages can also have 15-year terms. Buyers will have higher monthly payments with the shorter-term fixed rate loan, but the interest rate will be lower. The average Connecticut mortgage rate for fixed-rate 30-year mortgages is 4.45%.
Connecticut Jumbo Loan Rates
Connecticut homes tend to be more expensive than the average American home, but the “jumbo loan” limit is only above average in one county. Jumbo loans exceed the $417,000 conforming loan limit that exists in every Connecticut county except Fairfield. If you need to take out to jumbo loan in order to purchase your dream home, remember that they come with higher interest rates. The average jumbo loan rate in Connecticut is 4.41%.
Connecticut ARM Loan Rates
An adjustable-rate mortgage, as its name suggests, is one that has an interest rate that will adjust over time. Typically ARMs have a lower interest rate initially as compared to fixed-rate mortgages. That lower rate is offered for an introductory period that lasts for one, three, five, seven or 10 years, depending on the terms set out. Once that period ends, the interest rate can change and will generally go up.
Fortunately, there are safeguards in place to prevent the interest rate from skyrocketing. The loan’s terms specify a highest possible level that the rate can reach. That said, the new rate may still be one that you can’t afford to pay. Before deciding on an ARM, it is crucial to check that the maximum possible interest rate is something that you can actually pay.
The average rate for an ARM in Connecticut is 4.95%.
Connecticut Mortgage Resources
If you need assistance buying a home in Connecticut, here are some of the options that can help you at any step of the process.
The Connecticut Housing Finance Authority has assistance options for first time and at-risk homebuyers and current homeowners. The CHFA works with lenders throughout the state to help eligible candidates find more affordable mortgages and housing. It also offers classes on the pre-closing and pre-purchasing process.
If you are at risk for foreclosure, that is one area that the Connecticut Association for Community Action (CAFCA) focuses on. Its agencies can offer mortgage payment services, emergency rentals and eviction prevention.
|Resource||Problem or Issue||Who Qualifies||Website|
|Connecticut Housing Finance Authority||Homeownership eduction, affording down payment and mortgage.||First-time homebuyers, at-risk homebuyers and current homeowners.||http://www.chfa.org/Homeownership/default.aspx|
|Connecticut Association for Community Action||Foreclosure and homelessness.||Qualifying Connecticut residents who are facing foreclosure or eviction.||http://www.cafca.org/ProgramDescriptions#Housing_and_Shelter|
|USDA Rural Development - Single family loans||Offers payment assistance to increase an applicant’s repayment ability.||Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; and not be suspended or debarred from participation in federal programs.||http://www.rd.usda.gov/programs-services/all-programs/single-family-housing-programs|
|Home Affordable Refinance Program||Refinancing.||Single family homes and condos that fit within lending loan limits.||http://www.harp.gov/|
The United States Department of Agriculture Rural Development program also offers loan help and mortgage grants throughout the entire country. The program aims to help develop more rural areas of a state while offering affordable housing for residents. Connecticut has grants and loans available for home repairs as well as loan assistance programs for those who qualify.
Connecticut Mortgage Taxes
Unfortunately, Connecticut is one of 10 states that collects a personal income tax but does not offer a deduction on mortgage interest. But that doesn’t mean you’re out of luck if you’re buying in Connecticut; check with the Connecticut Housing Finance Authority for other money-saving options on your mortgage.
Connecticut also charges taxes on real estate property title transfers. The state real estate transfer tax for Connecticut is 0.75% up to $800,000 and 1.25% of value over $800,000, plus municipal tax. Discuss this tax with your lawyer or accountant before buying. Also be aware that in Connecticut, the seller typically pays this fee.
Connecticut Mortgage Refinance
If you’re refinancing your Connecticut home, there are some options to help you get there. The Home Affordable Refinance Program of Connecticut accepts single family homes and condos for refinance assistance. It can also grant eligible homeowners access to interest and principal payment reductions and low closing costs.
If you don’t qualify for HARP or a similar program, you can still work with the lender who issued you your original mortgage and compare those rates with other lenders to find the solution that works best for you.
Best Places To Get A Mortgage
SmartAsset’s interactive mortgage map highlights the best counties in the country (and in each state) for securing a mortgage. Hover over counties and states to see data points for each region, or use the map’s tabs to view the top counties for each of the factors driving our analysis.
Methodology For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.
To calculate the overall borrowing costs, we looked at the expected costs over the first five years of a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on the annual principal and interest payments for a $200,000 loan in that location, using average mortgage rates in each county.
Finally, we ranked locations based on these four factors, and then averaged those rankings, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.
Sources: Mortgage Bankers Association, US Census Bureau 2016 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset