When people think of Connecticut, they think of a beautiful and centrally located, yet residential place to live. Connecticut is one place in the country that offers its residents a very distinct transition between seasons, especially during autumn when the green trees turn to fiery reds, auburns, and oranges. In addition to offering a very rich amount of American history, Connecticut offers a refuge from the busy city life from surrounding metropolitan giants such as Manhattan, Boston, and Philadelphia. All of these factors have always made Connecticut a great and desirable place to live, and we all know that demand means higher prices. Today, Connecticut housing prices are growing at unprecedented rates, and they are not expected to slow down. Naturally, this presents difficulty for potential homeowners; however, many current Connecticut homeowners may want to take advantage of this boom by lowering their monthly mortgage payments through refinancing. The term sounds complicated to some, but refinancing is a rather uncomplicated concept. Simply put, refinancing is the process of obtaining a new loan to pay off your current home loan. This allows homeowners to take advantage of lower interest rates and more accommodating terms and conditions to their home loans.
Quick Connecticut Housing Facts:
- Percent of homeowners in Connecticut: 66.8%
- Percent of renters in Connecticut: 33.2%
- Median annual income in Connecticut: $54,788
- Average credit score in Connecticut: 694
- Best Connecticut city to live in: Tolland, CT
- Median Connecticut home value: $166,900
When to Refinance in Connecticut
When it comes to refinancing, timing is everything. It is important to reserve a significant amount of time to research all of the factors that may cost you money with relation to the process. After all, the whole purpose of refinancing is to save money, right? Be sure to check current rates, and if they are not at least 1.5% below what you are currently paying, then it is not the right time to refinance. In addition, it is important to make sure that your current mortgage terms do not include a clause that includes any fees for paying your loan off early. Oftentimes, these fees can amount to thousands of dollars. Lastly, be sure to do the math before you finalize your refinancing package to ensure that you will ultimately save money with the new loan. Otherwise, you may end up paying more than you would have had you kept your initial loan.
How much house can I afford in Connecticut
Because of the high cost of housing, one of the biggest problems facing Connecticut homebuyers is figuring out how much house you can afford. We have some great mortgage calculators that can help you figure how much home will fit into your monthly budget. Other factors to consider when choosing your loan is: what are the tax implications, what is your debt-to-income ratio, and how much you can afford on a monthly payment. All of these questions are good to ask yourself even if you are refinancing, getting a home equity loan, or looking to buy a new home.
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