If you’re interested in buying a home in the Constitution State, you’re not alone. There are 1.5 million housing units and a homeownership rate of 66% in Connecticut, according to the U.S. Census Bureau’s 2019 American Community Survey.
Connecticut’s typical home value is $328,551, which is lower than the national median home price of $404,700. Home values can vary by region, however, with some counties’ median home prices climbing much higher.
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AmeriSave Mortgage Corp. is an online lender that has been in business since 2002. It was one of the first to offer an offsite digital mortgage experience for customers. The company says it has financed more than 664,000 borrowers since it began operating. With headquarters in Atlanta, AmeriSave services loans in 49 states and Washington, D.C.
Pentagon Federal Credit Union, widely known as PenFed, offers borrowers access to many types of mortgages: conventional, adjustable rate, jumbo and Department of Veterans Affairs, plus refinancing loans and home equity lines of credit. The financial institution, which serves 2.8 million members, was established in 1935 and is based in McLean, Virginia.
PNC Bank is one of the largest banks in the United States, serving more than 9 million customers in all 50 states. A full-service mortgage lender, PNC offers most mortgage loan product types.
Bank of America serves roughly 67 million customers in all 50 states. The lender offers conventional, Federal Housing Administration, Department of Veterans Affairs and jumbo loans as well as home equity lines of credit and mortgage refinancing.
Guaranteed Rate, founded in 2000 and based in Chicago, offers mortgage options including conventional loans, FHA loans, jumbo loans and interest-only loans to customers in all 50 states and Washington, D.C. Borrowers can take advantage of specialized loan products and Guaranteed Rate’s online application, documentation and loan payment options.
Wells Fargo offers a variety of mortgage products nationwide. Options include conventional, government-backed and jumbo loans. You can also refinance an existing mortgage with Wells Fargo.
SoFi is an online lender founded in 2011 and headquartered in San Francisco that offers fixed-rate mortgages. Refinance, jumbo and home equity loans are also available.
Best for customer service
Rocket Mortgage, the largest mortgage lender in the nation, was founded in 1985. The Detroit-based company is best known for its fully digital experience of buying or refinancing a home. Rocket Mortgage changed its name from Quicken Loans in the summer of 2021.
Chase, one of the world’s largest banks, was founded in 1799 in New York and offers fixed-rate, refinance and other mortgage loans.
Alliant Credit Union is a not-for-profit financial cooperative that serves customers in all 50 states. Alliant offers products such as conventional, jumbo, refinancing and home equity line of credit loans, but specific mortgage products may not be available in certain states.
The average mortgage rate in Connecticut is currently 6.91% for the 30-year fixed loan term.
Here are the interest rates offered to Connecticut residents looking to buy or refinance a home as of 03/07/2023:
- 30-year fixed purchase: 6.91%
- 30-year fixed refi: 6.36%
- 15-year fixed purchase: 6.09%
Mortgage rates dipped this week amid economic uncertainty caused by the bank failures of Silicon Valley Bank and Signature Bank last weekend. The average fixed rate on a 30-year mortgage fell to 7.04% as investors struggle to price in the Federal Reserve’s next move.
Mortgage interest rates are twice as high as they were at the beginning of 2022, which continues to have a tangible impact on mortgage affordability and consumer housing sentiment. Mortgage rates were widely expected to fall throughout the course of 2023, but instead surged above 7% just ahead of the busy spring homebuying season. Here are the current mortgage rates, without discount points unless otherwise noted, as of March 16:
- 30-year fixed: 7.04% (down from 7.16% a week ago).
- 20-year fixed: 6.85% (down from 6.97% a week ago).
- 15-year fixed: 6.27% (down from 6.29% a week ago).
- 10-year fixed: 6.2% (down from 6.32% a week ago).
- 5/1 ARM: 5.78% (down from 5.8% a week ago).
- 7/1 ARM: 5.91% (down from 5.93% a week ago).
- 10/1 ARM: 6.16% (down from 6.18% a week ago).
- 30-year jumbo loans: 7.09% (down from 7.26% a week ago).
- 30-year FHA loans: 6.15% with 0.05 point (down from 6.27% a week ago).
- VA purchase loans: 6.37% with 0.05 point (down from 6.48% a week ago).
Connecticut homebuyers can get favorable mortgage interest rates and help with down payments and closing costs from these programs.
- Available to: Low- and moderate-income buyers who are buying their first home, haven’t owned a home in the past three years or are purchasing a home in a targeted area.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: No.
- Benefit: Below-market interest rate.
- Down payment and closing cost assistance: A low-interest supplementary second mortgage loan of at least $3,000 is available to cover the down payment. Borrowers must show enough monthly income to pay both loans and are required to to make a minimum investment of $1,000 toward the acquisition costs.
- Available to: First-time homebuyers or buyers who haven’t owned a home in the past three years.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: No.
- Benefit: No upfront mortgage insurance costs and lower monthly mortgage insurance costs.
- Down payment and closing cost assistance: Borrowers may automatically qualify for a low-interest supplementary second mortgage of at least $3,000 to cover the down payment. Borrowers must show enough monthly income to pay both loans and are required to to make a minimum investment of $1,000 toward the acquisition costs.
- Available to: Those who qualify for a CHFA mortgage who have the monthly income to make mortgage payments, but not enough money to pay the upfront costs.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: No.
- Benefit: A low-interest second mortgage at 1.0%.
- Down payment and closing cost assistance: The DAP loan must be at least $3,000, but no more than the minimum down payment required for the home, usually between 3% and 3.5%. Borrowers must make a minimum investment of $1,000 toward the acquisition costs and show enough monthly income to pay both loans.
- Available to: Veterans and military service members as well as unmarried, surviving spouses or civil union partners of a veteran who died as a result of military service or service-connected disabilities. Borrowers must also be first-time homeowners, have not owned a home in the past three years or purchase in an area of the state targeted for revitalization.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: No.
- Benefit: An additional 0.125% off already below-market interest rates for veterans or military service member loans.
- Down payment and closing cost assistance: The DAP loan must be at least $3,000, but no more than the minimum down payment required for your home, usually between 3% and 3.5%. Borrowers must show enough monthly income to pay both loans and are required to to make a minimum investment of $1,000 toward the acquisition costs.
- Available to: Teachers with a valid Connecticut certificate currently employed in the state and who meet employment or other eligibility requirements. Borrowers must also be first-time homeowners, have not owned a home in the past three years or purchase in an area of the state targeted for revitalization.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: No.
- Benefit: Teachers get an additional 0.125% off already below-market interest rates or 0.25% to minority teachers who meet eligibility requirements.
- Down payment and closing cost assistance: The DAP loan must be at least $3,000, but no more than the minimum down payment required for your home, usually between 3% and 3.5%. Borrowers must make a minimum investment of $1,000 toward the acquisition costs and show enough monthly income to pay both loans.
- Available to: Municipal police officers buying a home in the participating city or town where they work, or state police officers buying in any participating town. Borrowers must also be first-time homeowners, have not owned a home in the past three years or purchase in an area of the state targeted for revitalization.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: No.
- Benefit: Police officers get an additional 0.125% off already below-market interest rates.
- Down payment and closing cost assistance: The DAP loan must be at least $3,000, but no more than the minimum down payment required for your home, usually between 3% and 3.5%. Borrowers must show enough monthly income to pay both loans and are required to to make a minimum investment of $1,000 toward the acquisition costs.
- Available to: Borrowers with disabilities or those who will have someone with a documented disability living in their home. Borrowers must also be first-time homeowners, have not owned a home in the past three years or purchase in an area of the state targeted for revitalization.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: No.
- Benefit: Lower interest rate.
- Down payment and closing cost assistance: The DAP loan must be at least $3,000, with interest rates as low as 1%. Borrowers must make a minimum investment of $1,000 toward the acquisition costs and show enough monthly income to pay both loans.
- Available to: Tenants of public housing or those who receive rental assistance. Residents of properties managed or financed by CHFA, subsidized by the U.S. Department of Housing and Urban Development, or managed by a local housing authority also qualify.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: No.
- Benefit: Lower interest rate.
- Down payment and closing cost assistance: The DAP loan must be at least $3,000, with interest rates as low as 1%. Borrowers must show enough monthly income to pay both loans and are required to to make a minimum investment of $1,000 toward the acquisition costs.
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. For mortgage lenders, we take into account each company’s customer service ratings, interest rates, loan product availability, minimum down payment, minimum FICO score and online features.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
To recap, here are the picks:
Best Connecticut Mortgage Lenders of 2023
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