Vermont offers three standard mortgage types. The first, fixed rate conventional mortgages are the most popular with 80% of all mortgages issued in this state being of this kind. Adjustable rate mortgages are second with a distant third being balloon mortgage plans. FHA and VA loan programs are available in the state but are not used as often as in other states. Vermont is a non-recourse state which means that if a mortgage defaults the lender does not have the ability to attach any debt to any other possessions they own. Fixed rate mortgages are most often issued as 15 or 30 year loans, but other time periods such as 10 or 40 are available.
Vermont Mortgage Rates
Vermont mortgage rates are very close to the median mortgage rates found throughout the United States. This is unusual for a North Eastern state which often tends to have higher rates than the national average. Mortgage rates will be based on all the typical credit requirements including: credit score, employment length and down payment amount. The use of mortgage insurance may help reduce the interest rate. Risk will also be accessed by determining the loan to value ratio and type of mortgage program. Different lenders may reduce or raise the interest rate according to their specific requirements. Bad credit mortgages will have high interest rates in comparison. Some first time home buyer programs will reduce the interest or assist with down payment.
Vermont Refinance Rates
Refinance rates in Vermont are a little higher than their standard mortgage rates. Often the closing costs, appraisal and home inspection fees outweigh the benefits of refinancing. Home owners wishing to access their equity to pay bills or fix up their homes will pay a higher interest rate than those looking to reduce interest or length of loan only. All qualifications for the loan will remain in place just like a first mortgage.
Vermont Mortgage Brokers And Lenders
Any financial institution that is registered in the state to do business as a mortgage lender can issue loans. There are many community and privately held banks in the state that still offer mortgage programs. Corporate banks, private fiancé companies, credit unions and internet mortgage brokers are all authorized to do business in the state. Lenders can offer special programs if they desire. There are no restrictions placed on the amount of interest they can charge.