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The three main types of mortgages found in Connecticut are the fixed rate mortgage, the adjustable rate mortgage (ARM) and the jumbo loan. Jumbo mortgages are very popular in this area due to the high number of homes exceeding the $417,000 limit of a regular mortgage. FHA and VA backed loans are available within the state. There are mortgages specifically for first time buyers as well as those with less-than-perfect credit.

Connecticut Mortgage Rates

Connecticut mortgage rates are higher than most other states, but near average for the North Eastern part of the country. One of the main reasons that Connecticut mortgage rates are so high is due to the large number of jumbo mortgages issued in this state. Jumbo mortgages will always carry a higher than average interest rate because of the associated risk of these large loans. Mortgage rates will also be determined by the location of the property, if mortgage insurance has been purchased and amount of the down payment. Borrowers will also be subjected to credit history check, financial screening and employment verification. Mortgage rates may be adjusted by purchasing points on the loan at closing time or by applying a larger down payment on the property.

Connecticut Refinance Rates

Refinance rates in the state are slightly higher than the national average but very comparable to the current mortgage rates in the state. Many factors go into determining the refinance rate such as: equity available in the home and if it is to be used, type of loan secured on the property, will it change from a jumbo to a conventional loan and length of time the loan is needed for. Borrowers will need to undergo a credit evaluation and will need to secure an appraisal on their property.

Connecticut Mortgage Brokers And Lenders

Connecticut is home to many of the largest banks in the country. There are countless hundreds of lending institutions available for the consumer to select from. Credit unions, private companies and internet mortgage brokers can all do business within the state. Many banks offer special programs to people with bad credit or a lower income level. Some of the lenders specialize in first time home purchases only. Consumers will need to inquire with a few lenders so they can find the right opportunity.