Summary List Placement
Table of Contents: Masthead StickyBuying a home in Connecticut
According to Zillow, the typical home value in Connecticut is a little higher than the US national typical value of $259,906. The typical home value in Connecticut is $272,404, and Zillow expects the value to increase to $292,000 by September 2021.
First-time homebuyer programs in Connecticut
The Connecticut Housing Finance Authority offers several financial assistance programs, including the following:
The HFA Advantage and HFA Preferred Loan Programs: Get a loan with reduced mortgage insurance costs, and you’ll stop paying private mortgage insurance when you gain 20% equity in your home. (Some lenders in the US make you wait until you have 22%, but these loans let you off the hook at the 20% mark.) The HFA Preferred program is available for multi-family homes, but the HFA Advantage program is just for single-family homes.
Conventional Area Median Income Loan program: If you have a low-to-moderate income, you can buy a home with no upfront mortgage insurance costs and discounted monthly insurance costs. The CHFA will cancel your mortgage insurance when you reach 20% equity in your home.
Down Payment Assistance Program loan: You must borrow at least $3,000, but you can’t borrow more than the minimum down payment for your home.
Reduced interest rates: You can get a rate discount as a military service member/veteran, teacher, or police employee. You can also get lower rates if you have certain disabilities or are a resident of public housing. You can combine these low interest rates with down payment assistance.
FHA 203(k) Renovation Mortgage Program: Get a low interest rate on a loan that wraps up the cost of home repairs into your mortgage.
Mobile Manufactured Home Loan program: If you are buying a mobile home or manufactured home, you can get a low interest rate and reduced closing costs.
The Housing Development Fund offers down payment assistance for residents of Washington, Connecticut. Receive a no-interest loan for up to $10,000, and pay it back over 30 years.
Historic mortgage rates for Connecticut
By looking at the average mortgage rates in Connecticut since 2010, you can see trends for 30-year fixed mortgages, 15-year fixed mortgages, and 5/1 adjustable mortgages:
Seeing how today’s rates compare to historic Connecticut mortgage rates may help you decide whether you’d be getting a good deal by getting a mortgage or refinancing now.
30-year fixed rates
You’ll pay a higher interest rate on a 30-year fixed mortgage than on a shorter-term fixed-rate mortgage. The 30-year fixed rates used to be higher than adjustable rates, but recently 30-year terms have been the better deal.
Monthly payments are relatively low for a 30-year term, because you’re spreading payments out over a longer period of time than you would with a shorter term.
You’ll ultimately pay more in interest with a 30-year term than you would for a 15-year mortgage, because a) the rate is higher, and b) you’ll be paying interest for longer.
15-year fixed rates
You’ll pay …read more
Source:: Business Insider