Current Vermont Mortgage and Refinance Rates

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.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

→ 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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