Connecticut Mortgage Calculator | Ascension
Connecticut Real Estate Market
Connecticut is a hot real estate market – home values ââhave increased over the past year. Currently, the state owns some of the most expensive homes in the country. This is not surprising given its proximity to New York and Massachusetts.
This can create affordability issues for buyers, especially first-time homebuyers and those downsizing their homes. The median home value is $ 262,600, according to Zillow. That means Connecticut residents pay a little more than the national median of $ 252,178. As a result, the average mortgage payment in Connecticut is also higher than in other areas.
Most of the population lives in the cities of Bridgeport, New Haven, Hartford, Stamford and Waterbury. Owners will find that these areas can have a mix of listing prices. For example, Stamford (near New York) has a median listing price of $ 447,838. On the other hand, Hartford (further up the coast) has a much lower median listing price: $ 117,440.
How does this home cost difference affect your monthly mortgage payment? Our Connecticut mortgage calculator can help you estimate your monthly mortgage payments for higher priced metropolitan areas as well as more affordable suburban homes. (If you’re not sure where to start with interest rates, check out our guide to current Connecticut mortgage rates.) Experiment with different numbers to determine housing costs that fit your budget and lifestyle.
How do I calculate my mortgage payment?
We recommend that you use a Connecticut mortgage calculator. The formula for calculating by hand can be quite complex. It looks like this:
In addition to the principal and interest calculated in this formula, you will need to add monthly insurance fees and taxes. Property taxes and home insurance are normally paid monthly to your lender. Your lender sets them aside in a separate escrow account and then pays them to the appropriate organizations once a year. Our Connecticut mortgage calculator lets you add taxes and insurance to your monthly payment.
When using our Connecticut mortgage calculator, remember that state property tax rates in that state average 1.63%. It is one of the highest in the country. In fact, residents spend about 5.5% of their income each year just on property taxes, according to TaxRates.org.
The Connecticut Mortgage Calculator also has an option to enter your down payment amount. If you save for a larger down payment, you won’t need to borrow as much and your monthly mortgage costs will be lower.
Remember: If you make a down payment of less than 20% of the final sale price of the house, you will need to pay for private mortgage insurance (PMI). This typically costs between 0.5% and 1% of your loan amount each year. You can also add PMI costs to the calculator above.
The many and varied costs of a monthly mortgage payment can be difficult to calculate by hand. Our Connecticut mortgage calculator takes all of these factors into account to give you a complete estimate of your monthly mortgage payment. It will also help you compare various scenarios (such as different interest rates and house prices).
To enter these additional costs into the mortgage calculator above for Connecticut, simply click âAdditional Entriesâ (under âMortgage Typeâ).
What to Know Before Buying a Home in Connecticut
Buying a home is a major business. Here are some things to remember when buying a home in Connecticut:
Check out our guide to home loans to make sure you have all the information you need before you get started. Below, we’ll discuss these factors in more detail.
First of all, you’ll want to pay for your own home inspection. This typically ranges from $ 275 to $ 399. The final amount depends on the size of the house and whether you want to perform additional testing. Connecticut sellers are required to provide a property disclosure, but this is not always as reliable as paying for an official inspection. Wouldn’t you like to know the potential problems of your future home?
Another additional expense is closing costs. You will pay them when you sign the last papers. Connecticut residents can expect to pay 2% to 5% of the home price in closing costs. You will have to pay fees to various parties, such as a real estate attorney, mortgage lender, your county, and your state. These can include setup fees, administration fees, and subscription fees. Note that the origination fees differ from lender to lender, which is one reason why finding the best mortgage lender is crucial.
There are other costs to be expected. These can include a home appraisal, mortgage points, title insurance credit reports, flood certification, and surveys. Title insurance is mandatory – it protects you against financial loss resulting from easements, undisclosed liens, or other types of future title disputes. Finally, don’t forget about taxes. Homebuyers in Connecticut must pay a transfer tax to transfer title deeds.
Tips for First-Time Home Buyers in Connecticut
If you are a first-time buyer in Connecticut, there are several steps you need to take before applying for a mortgage. Here are some of the ways to increase your chances of getting mortgage approved:
The credit score required for a mortgage loan varies depending on the lender. If you don’t need to move immediately, it helps to wait until you have a good credit rating. Buyers with high credit are generally entitled to lower interest rates. This can save you thousands of dollars over the life of your home loan.
If your credit rating is low but you need to move now, check out our list of the best mortgage lenders for bad credit. We also have a guide on how to improve your credit score.
There are a few first-time home buying programs in Connecticut. These are also open to people who have not owned their accommodation in the past three years. If you qualify, you can get help with things like your down payment. In some cases, these programs offer lower interest rates.
The Connecticut Housing Finance Authority (CHFA) ââoffers three programs with different eligibility requirements:
- Mortgage Loan Program for Home Buyers: This program offers below market interest rates on mortgages. Homebuyers must meet eligibility requirements and complete a training course before closing. CHFA approved lenders can help get you started.
- CHFA Down Payment Assistance Program: This is a low-interest loan that is used as a down payment on your home. Applicants must first qualify for a mortgage with a CHFA approved lender.
- HFA AdvantageÂ® and HFA Preferred â¢ loan programs: These mortgages avoid the initial and monthly insurance costs. Homebuyers must take a pre-closing training course.
Even if you don’t qualify for any of the above programs, there are plenty of ways to save on your monthly mortgage payments. The best place to start is to shop around for rates with different lenders. By reviewing various mortgage loan offers, you can get a feel for the average mortgage payment in Connecticut and find out which lenders offer the best terms and rates.