Vermont Mortgage Calculator

Best mortgage lenders in Vermont

The leading mortgage lenders in Vermont have a presence across the entire country. These include such recognizable names as Rocket Mortgage, AmeriSave, Pentagon Federal Credit Union. Several lesser known but trustworthy options include Vermont-based Vermont Mortgage Company, Spruce Mortgage.

How to calculate mortgage payment in Vermont

Use our fast and simple calculator VT to evaluate your future monthly expenses. A detailed step-by-step instruction follows below.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Vermont for thorough planning of your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in Vermont parameters.

The first piece of the puzzle is the home price – that is, how much you are planning to spend on your future property. A down payment is the portion of this price to be paid upfront. To avoid costly insurance, you must come up with at least 20% down (in case of a conventional loan). The remaining amount makes up the principal (e.g. 80% of the home price given a 20% down payment).

A loan term refers to the period required for complete repayment of your mortgage through scheduled payments. Fixed-rate conforming loans typically have a maximum term of 30 years, while adjustable-rate options usually feature shorter terms.

An interest rate is a fixed or variable percentage of the principal that you are obligated to pay over the course of the loan. It's important to note that you are actually charged an annual percentage rate (APR), which is not precisely the same as the interest rate. While the interest rate constitutes the majority of the APR, the latter also encompasses various additional fees such as origination fees, closing costs, and insurance payments.

For more precise assessment, the interest rate used for these calculations is based on the current mortgage rates in Vermont, given a $400,000 home price and a 10% down payment.

Median property taxes in Vermont counties

Property taxes are another crucial factor to take into account when choosing your future home. It's common for many lenders to require the establishment of a mortgage escrow account to ensure that the borrower stays current with their tax and insurance expenses.

Source: American Communities Survey 2016, U.S. Census

Vermont Housing Market 2024

The past year has seen a steep increase in the market value of housing in Vermont. This continues a longstanding trend amplified by the COVID pandemic. Nevertheless, the pace of growth has diminished compared to the previous year, while both purchase and refinance rates have been on the increase for some time and are expected to rise further in the near future.

How do I calculate my mortgage payment?

The most convenient way to do this is to make use of our calculator. It's powered by a simple formula, which you can also use to calculate the amount to be paid by hand:

M = P*i(1 + i)^n / (1 + i)^n – 1

M – estimated monthly mortgage payment;

P – principal;

I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);

N – the loan term expressed in months (in other words, the overall number of monthly payments)

Imagine you are applying for a 15-year mortgage loan with a fixed 6.99% APR (which is .0699 as a unit fraction). The house costs $500k, with 10% ($50,000) to be paid down. The principal amount (P) will be equal to 90% of the initial home cost ($500,000 – $50,000 = $450,000).

I = .0699 % / 12 = .005825%.

Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.

M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.

So, you are going to pay about $4042 a month.

It is important to note that the calculated M value is approximate, as no extra fees are taken into account.

Tips for first-time home buyers in Vermont

First, there are several federal agencies (USDA, FHA and VA) that guarantee loans for selected borrowers. Many first-time homebuyers can find options which most fit their budget.

In addition to these government-backed initiatives, it's worthwhile to explore offerings from the Vermont Housing Corporation (UHC) available to residents of Vermont. Specifically, first-time homebuyers who meet the qualifications for an FHA loan with a FICO score of at least 660 can apply for the FirstHome program. This program extends support by covering up to 6% of the loan amount for down payments and/or closing costs. It's important to note that this assistance takes the form of a 30-year-fixed-rate second loan exclusively. If you don't meet the criteria for the FirstHome program, there's an alternative option called the Vermont Housing Score Loan, which provides up to 4% assistance, with a minimum acceptable credit score of 620.

Here are some valuable tips for those embarking on their homebuying journey:

1. Obtain pre-approval in advance. This will enhance your credibility in the eyes of potential home sellers. It's advisable to secure pre-approval letters from not just one, but at least two or three different lenders.
2. Compare various mortgage rates. Consider a minimum of three lenders to ensure you're making an informed decision.
3. Conduct preliminary financial calculations based on the pre-approved amount you've obtained. Plan your future financial commitments accordingly.
4. Strive to save as much as possible for a down payment, and do so as early as you can. A higher down payment reduces the principal amount, potentially leading to lower overall expenses. Therefore, initiating your savings early is crucial.
5. If you're eligible for a VA loan, explore this option as a priority.
6. Investigate government-backed programs and local assistance initiatives. These programs often present enticing opportunities, so don't overlook them.
7. If feasible, work on paying off any outstanding debts to improve your financial profile.