Best Connecticut Mortgage and Refinance Rates for October 2020

Connecticut currently has low mortgage rates and excellent refinance rates. This is an ideal time to consider buying a home in the state of Connecticut, especially considering that the quality of life is so high in this state.

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Current Connecticut Mortgage and Refinance Rates

Shop and compare the best mortgage rates in Connecticut. Interest.com regularly surveys various sources to bring you current national average mortgage rates and terms.

Product Rate Rate Last Week
30-Year Fixed Rate2.980%3.040%
15-Year Fixed Rate2.570%2.590%
5/1 ARM Rate2.940%2.940%
30-Year Jumbo Mortgage Rate3.090%3.110%
30-Year Fixed Refinance Rate3.180%3.140%

Rates data based on Stamford, Connecticut as of 10/23/2020

Mortgage Rates Trends

In this graph:

On , the APR was for the 30-year fixed rate, for the 15-year fixed rate, and for the 5/1 adjustable-rate mortgage rate. These rates are updated almost every day based on Bankrate’s national survey of mortgage lenders. Toggle between the three rates on the graph and compare today’s rates to what they looked like in the past days.

Note: Not sure how much house you can afford? Use our mortgage calculator to find out.

The Connecticut real estate market was off to great start this season until the coronavirus pandemic swept through the United States. Now many buyers have adopted a wait-and-see attitude, postponing their home search unless there is an urgent need. Although experts believe that there will be a resurgence in markets nationwide, news is more tempered for Connecticut. However, interest rates are low, mirroring the national average, and Connecticut’s high quality of life, excellent public schools and employment opportunities make it an ideal place to settle down and raise a family.

Getting a mortgage in Connecticut

The mortgage loan process in Connecticut is relatively straightforward. Homebuyers go through a pre-approval process before choosing a loan or getting a firm interest rate, and buyers can choose from a number of different lenders and loan types.

You’ll need to understand your debt-to-income ratio to know how much you can borrow. Most lenders will only approve your loan up to 28% of your gross monthly income, and will only allow your total loan payments to equal less than 36% of your gross income. In other words, your car payments and credit card debt play a role in how large of a mortgage the lender will allow you to take on.

  1. Median home price: $272,700
  2. Average 30-year fixed rate: 3.02%.
  3. Media monthly mortgage cost: $2,096
  4. Homeownership rate: 66.3%

Connecticut state mortgage rate trends

Connecticut’s 30-year fixed-rate mortgage rate of 3.02% tracks closely with the national mortgage rate, which is currently 3.070%. Homebuyers who want to take out a 15-year fixed-rate loan are looking at average rates of 2.60% as of Aug. 7, while the refinance rates were about 3.15% on average. The current trend nationwide is for mortgage interest rates to skew downward, and most analysts expect that to continue through the end of 2020 as the recession continues.

If you’re a Connecticut state resident looking to restructure your loan or tap into equity, this is a pretty good time to take the plunge. There are new protocols for inspectors, so it may take some time for lenders to process your loan, but locking your rate will ensure that you are able to capitalize on savings.

Connecticut state current mortgage rates

The current average mortgage rate for a 30-year fixed loan is 3.02% as of Aug. 7, down from the week before. A 30-year fixed jumbo loan is virtually identical, at 3.08%. A 15-year fixed-rate loan is 2.60%, and a 5/1 adjustable rate loan is 3.19%.

In Connecticut, refinance rates are trending slightly higher than new home rates. The current rate for a 30-year fixed refinance is 3.15%.

Most and least expensive places to live in Connecticut

People looking to commute into a major city can expect lean inventory and real estate prices that are considerably higher than elsewhere in the state. For more reasonable prices, you’ll need to go north or east. The good news is that you’ll find excellent public schools and high quality of life just about anywhere in the Constitution State.

4 most expensive

  1. Fairfield County — Excellent public schools, stately beauty and high quality of life characterize this bedroom community for wealthy Manhattanites.
  2. Middlesex County — South of Hartford and east of New Haven, Middlesex County offers ready access to beaches, great nightlife and good public schools.
  3. New Haven County — Home of Yale University, this southern Connecticut county offers diversity, nightlife and good schools, which is why so many young professionals make their home here.
  4. Hartford County — Hartford County scores high overall for livability, with great schools, diversity and nightlife. It’s the perfect place for families.

4 least expensive

  1. Windham County — Most residents own their homes in this east Connecticut county with above-average schools.
  2. Litchfield County— Located in the northwest corner of the state, Litchfield County has good public schools, employment opportunities and a thriving nightlife.
  3. Tolland County— With close proximity to Hartford, this suburban county has excellent public schools and is a great family community.
  4. New London County— New London County is in southeastern Connecticut. It has excellent public schools, beaches and a small-town vibe.

Connecticut state mortgage resources and intricacies

The Connecticut Housing Finance Authority (CHFA) offers first-time homebuyers 30-year fixed-rate mortgages with below-market interest rates if you meet its eligibility requirements. The CHFA offers special loans to civil servants, veterans and disabled residents. It also has a down payment assistance program.

One quirk of the Connecticut home buying process is the emphasis on prequalification or preapproval. You must be preapproved to advance with a lender, but you are not required to use the same lender who preapproved you to underwrite your mortgage loan. As a buyer, you’ll typically pay 3% to 5% of the property’s sale price in closing costs.

Connecticut offers two different types of refinance loans. You can refinance to get a more favorable interest rate or you can refinance to cash out some of the equity you’ve built in your home. Once your home’s value increases enough, you can also use a refinance to get rid of the private mortgage insurance attached to your loan, which is required if you didn’t have a 20% down payment initially.

The final word

The Northeast experienced the brunt of the coronavirus pandemic in April, and right now, the Connecticut real estate market is in the process of finding its equilibrium. That’s no reflection of the market’s intrinsic value, though. With mortgage rates this low, it is an excellent time to purchase your dream home away from the city crowds, with great public schools and a big yard for your children.

Valerie Fulton

Valerie Fulton is a freelance writer who specializes in personal finance, real estate, higher education, home improvement, and business copy. Her work has been published at Veros Real Estate Solutions, Bluehost, Sears, UPS, Movoto, the Simple Dollar, Peak Communications, and the University of Tennessee. Every summer, she travels from Austin, Texas to the coast of Maine with her two standard poodles in order to manage the vacation property she bought for a steal several years ago.