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Vermont Mortgage Rates for March 2019

In Vermont, the average 30-year mortgage rate is 4.47%. Vermont's average 15-year mortgage rate is 3.97%, while the average initial rate of 5/1 adjustable-rate mortgages (ARMs) is currently 4.05%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.47%–0.03%–0.38%
15-year fixed3.97%–0.04%–0.38%
5/1 ARM4.05%–0.02%–0.15%
Rates for a $200,000 loan with 20% down payment

If you're looking to buy a home in Vermont, you've probably noticed how mortgage rates can change on a daily basis. This makes it important for homebuyers to understand what a fair mortgage rate looks like for the amount and loan type that they're seeking. To help you get there, we've kept a close eye on current rates from the most popular home loans and lenders in the Green Mountain State.

Best Mortgage Rates in Vermont

Currently, Vermont's lowest 30-year mortgage rate is 4.13%. The shorter 15-year mortgage in Vermont offers rates as low as 3.75%, while the state's best initial rate for a 5/1 ARM is 3.63%. These rates are estimates based on a home purchase of $200,000 and a 20% down payment.

Lenders in the mortgage industry price their loans for individual applicants and in response to the current condition of the larger market. With every lender following its own underwriting preferences, you may find that each quote you obtain offers a slightly different mortgage rate. Naturally, this means that finding the best possible rate requires some canvassing.

But comparing your quotes against each other doesn't necessarily give you the full picture on what constitutes a good mortgage rate. You also need to measure your offers against the going rates in the current market. To give you a basis for comparison, we've collected data about the average mortgage rate and top lender offers in Vermont this week.

Current Mortgage Rate Forecast for Vermont

Although experts predicted rising rates in 2019, the average U.S. mortgage rate has actually trended downwards since December 2018. In part, this reversal occurred due to uncertainty about future economic performance and new decisions by the Federal Open Market Committee (FOMC). The FOMC announced in January that it would wait and see before implementing any further rate increases.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

The FOMC's last move to increase U.S. interest rates came in December, when it announced a new target federal funds rate range of 2.25% to 2.50%. The graph above illustrates how average mortgage rates don't always move in concert with the target federal funds rate. Still, the FOMC's decisions about the target rate can be a long-term indicator of the direction rates are more likely to take.

Vermonters in the market for a new home may find it a good time to look for lower rates this quarter, but continued uncertainty makes it difficult to predict whether rates will rise or fall afterwards. Regardless of the rates you're seeing, it's just as important to ensure that you can meet the various upfront costs of buying a home. Getting a great rate isn't worthwhile if you have to pay for additional discount points or closing costs.

Rates at Vermont's Most Popular Mortgage Lenders

As technology improves, it's becoming much easier to find and compare mortgage lenders online. However, local banks continue to play a significant role in determining market rates for all borrowers. We looked at a one-time sampling of rates from Vermont's largest banks to see how their quotes compared to each other and the state average.

Column graph comparing 30-year mortgage rates at major Vermont banks

There was very little difference in the mortgage rates offered by Vermont's in-state lenders. While online rates may vary significantly, the estimates we obtained suggest that it doesn't make much difference which option you choose if you're applying for financing from a brick-and-mortar bank in Vermont. Your financial profile and choice of loan will likely play a bigger role in determining your final rate.

While the similarity of these estimates doesn't leave much room for comparison-shopping your way to a lower rate, not every lender will offer the same value in your closing costs or loan servicing. Some lenders may appear to promise a competitive rate, only to charge you for the cost of the discount points required to achieve that rate. Considering more than one mortgage lender in your process is still good practice, especially when rates are changing from week to week.

Comparing Home Loan Rates by City

Vermont is home to several major cities, each occupying its own economic and cultural niche within the state. To see if those differences translated into differences in housing costs, we compared both the average 30-year mortgage rate and the median value of owner-occupied property in each of Vermont's largest metro areas.

AreaAverage mortgage rateMedian home value
Claremont-Lebanon4.51%$223,851
Burlington-South Burlington4.49%$288,317
Rutland4.50%$187,718
Barre4.52%$224,451
Average rate is for a 30-year mortgage with a 20% down payment.

Rates don't actually vary by much in Vermont, but that's not simply because it's a smaller state. We found that the median value of an owner-occupied home did vary significantly from area to area, with a six-figure difference in the medians for Burlington and Rutland. The more likely reason that mortgage rates remain stable across the state is that they do so on a national basis as well, with credit available from similar lenders across the country.

Ultimately, your home price and mortgage rate come together to determine the majority of your monthly housing costs. Low mortgage rates aren't quite as helpful to homebuyers in areas with very high property values. If you're prepared to move in order to purchase a home, it makes more sense to focus on the listed prices you find rather than on variations in the cost of financing.

Evaluating Your Mortgage Options: An Example in Rutland

If you're trying to lower your mortgage rate, it's usually a good idea to start by improving your credit score and paying down existing debt. But if you're already in the final stages of a purchase agreement, such long-term strategies may not be possible. This is when your choice of loan type can offer an alternative means of reducing your interest rate.

Imagine that you want to buy a home in Rutland for $200,000. Given a down payment of 20%, you can expect an average rate of 4.50% for a 30-year loan. This equates to a minimum monthly payment of $811 and $133,565 in lifetime interest. This standard 30-year fixed-rate mortgage continues to be the most popular scenario for U.S. homeowners.

However, not many homeowners actually stay in the same home for three decades. For those expecting to move out within the first decade, taking an ARM loan can minimize costs in the first part of the loan. A 5/1 ARM loan in Vermont currently has an average rate of 4.05% in each of the first five years, after which the rate can go up or down based on the index rate. So long as you move within those five years, your monthly principal and interest won't exceed $769.

Vermonters looking to settle in for the long term require a different solution. If you have enough capital and want to pay as little interest as possible on your way to full ownership, a 15-year fixed-rate mortgage would work best. At the current average, a 15-year mortgage applied to our example would cost at least $1,182 per month. While payments are higher, they're also fewer: you would pay a total of just $52,598 in lifetime interest.

In Vermont, the average 30-year mortgage rate is 4.47%. Vermont's average 15-year mortgage rate is 3.97%, while the average initial rate of 5/1 adjustable-rate mortgages (ARMs) is currently 4.05%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.47%–0.03%–0.38%
15-year fixed3.97%–0.04%–0.38%
5/1 ARM4.05%–0.02%–0.15%
Rates for a $200,000 loan with 20% down payment

If you're looking to buy a home in Vermont, you've probably noticed how mortgage rates can change on a daily basis. This makes it important for homebuyers to understand what a fair mortgage rate looks like for the amount and loan type that they're seeking. To help you get there, we've kept a close eye on current rates from the most popular home loans and lenders in the Green Mountain State.

Currently, Vermont's lowest 30-year mortgage rate is 4.13%. The shorter 15-year mortgage in Vermont offers rates as low as 3.75%, while the state's best initial rate for a 5/1 ARM is 3.63%. These rates are estimates based on a home purchase of $200,000 and a 20% down payment.

Lenders in the mortgage industry price their loans for individual applicants and in response to the current condition of the larger market. With every lender following its own underwriting preferences, you may find that each quote you obtain offers a slightly different mortgage rate. Naturally, this means that finding the best possible rate requires some canvassing.

But comparing your quotes against each other doesn't necessarily give you the full picture on what constitutes a good mortgage rate. You also need to measure your offers against the going rates in the current market. To give you a basis for comparison, we've collected data about the average mortgage rate and top lender offers in Vermont this week.

Although experts predicted rising rates in 2019, the average U.S. mortgage rate has actually trended downwards since December 2018. In part, this reversal occurred due to uncertainty about future economic performance and new decisions by the Federal Open Market Committee (FOMC). The FOMC announced in January that it would wait and see before implementing any further rate increases.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

The FOMC's last move to increase U.S. interest rates came in December, when it announced a new target federal funds rate range of 2.25% to 2.50%. The graph above illustrates how average mortgage rates don't always move in concert with the target federal funds rate. Still, the FOMC's decisions about the target rate can be a long-term indicator of the direction rates are more likely to take.

Vermonters in the market for a new home may find it a good time to look for lower rates this quarter, but continued uncertainty makes it difficult to predict whether rates will rise or fall afterwards. Regardless of the rates you're seeing, it's just as important to ensure that you can meet the various upfront costs of buying a home. Getting a great rate isn't worthwhile if you have to pay for additional discount points or closing costs.

As technology improves, it's becoming much easier to find and compare mortgage lenders online. However, local banks continue to play a significant role in determining market rates for all borrowers. We looked at a one-time sampling of rates from Vermont's largest banks to see how their quotes compared to each other and the state average.

Column graph comparing 30-year mortgage rates at major Vermont banks

There was very little difference in the mortgage rates offered by Vermont's in-state lenders. While online rates may vary significantly, the estimates we obtained suggest that it doesn't make much difference which option you choose if you're applying for financing from a brick-and-mortar bank in Vermont. Your financial profile and choice of loan will likely play a bigger role in determining your final rate.

While the similarity of these estimates doesn't leave much room for comparison-shopping your way to a lower rate, not every lender will offer the same value in your closing costs or loan servicing. Some lenders may appear to promise a competitive rate, only to charge you for the cost of the discount points required to achieve that rate. Considering more than one mortgage lender in your process is still good practice, especially when rates are changing from week to week.

Vermont is home to several major cities, each occupying its own economic and cultural niche within the state. To see if those differences translated into differences in housing costs, we compared both the average 30-year mortgage rate and the median value of owner-occupied property in each of Vermont's largest metro areas.

AreaAverage mortgage rateMedian home value
Claremont-Lebanon4.51%$223,851
Burlington-South Burlington4.49%$288,317
Rutland4.50%$187,718
Barre4.52%$224,451
Average rate is for a 30-year mortgage with a 20% down payment.

Rates don't actually vary by much in Vermont, but that's not simply because it's a smaller state. We found that the median value of an owner-occupied home did vary significantly from area to area, with a six-figure difference in the medians for Burlington and Rutland. The more likely reason that mortgage rates remain stable across the state is that they do so on a national basis as well, with credit available from similar lenders across the country.

Ultimately, your home price and mortgage rate come together to determine the majority of your monthly housing costs. Low mortgage rates aren't quite as helpful to homebuyers in areas with very high property values. If you're prepared to move in order to purchase a home, it makes more sense to focus on the listed prices you find rather than on variations in the cost of financing.

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