Connecticut Mortgage Calculator: Estimate Your Monthly Payment
Updated: January 18, 2024
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Connecticut is one of the states with the highest real estate tax rate, at 2.14%. Annual property taxes can cost around $4,658. Plus, the average mortgage payment in the state is $1,209, which is around $50 higher than the national average. That said, it is important to know how much you should expect to pay for a mortgage.
With MoneyGeek’s Connecticut state mortgage calculator, you can evaluate your mortgage costs and potentially determine ways to lower your monthly payments. Comparing several lenders in the state allows you to choose the right option based on the rates you can access. You’ll be able to identify what other expenses, like taxes and interest, are included in your mortgage costs.
Start Here: Plug In Your Mortgage Factors
Using MoneyGeek’s Connecticut mortgage calculator will give you an estimate of your monthly mortgage cost. We break down the 12 factors that affect the cost of your mortgage below.
Why and How to Use Our Mortgage Calculator
Buying a home is a big financial decision. Connecticut residents pay one of the highest real estate tax rates compared to other states. As a result, it’s important to factor in these costs when taking out a mortgage.
To get a general estimate of your home loan costs in Connecticut, use our Connecticut mortgage calculator and enter data based on your circumstances. The following explains all the terms and amounts that might be included in your mortgage.
Home Price:
Indicate the maximum price you are comfortable paying or the actual amount you want to pay.
Down Payment:
Home loans typically require a down payment. Paying a higher down payment lowers your monthly payments.
Interest Rate:
This is the annual rate lenders charge for the money you borrowed. MoneyGeek provides daily mortgage rate reports from lenders.
Loan Terms:
Indicate how many years you plan to pay your mortgage loan. Typically, mortgage terms last 15 or 30 years.
Payment per Year:
Enter how many times you plan to make payments in a year. Monthly payments mean paying 12 times in a year.
Property Tax:
In Connecticut, the average annual property tax is $4,658. This is the amount that you pay the government, which is calculated based on the purchase price of your home.
HOA Fees:
You will have an additional monthly payment if you live in a community with a homeowner’s association (HOA).
Principal & Interest:
This is the total amount you borrowed and the cost you have to pay to compensate the lender for the loan.
Monthly Payment:
This is the total amount that you pay every month, including principal, interest, property taxes and HOA dues.
Principal Payment:
The monthly payments you make that go toward paying off the entire balance.
Interest Payment:
The amount the lender charges for the mortgage loan based on the interest rate.
Total Cost with Interest:
The total amount you pay the lender accounting for all the relevant factors.
In Connecticut, the average monthly mortgage payment is $1,209. This amount is based on the home price, location, type of loan and lender. If you want to lower this cost, there are a few things you can do:
- Buy or build a less expensive house.
- Make a large down payment if you can afford it. You will need to purchase private mortgage insurance if you are paying less than 20% of the home price.
- Extend your loan term. If you think that the monthly payments for a 15-year term are slightly above your budget, you can extend the loan term up to 30 years, which would automatically reduce your monthly bills.
- Check your eligibility for a government loan or a mortgage relief program.
Next Steps: What to Do After You Have Estimated Your Mortgage Payments
MoneyGeek compiled research that can help you in your home-buying journey. After understanding mortgages and learning about your estimated mortgage costs, you can move forward towards getting a mortgage for your home.
- Shop and compare rates - In Connecticut, you can choose between several lenders to take out a mortgage. To find the best plan for your budget, shop around and learn about the average Connecticut mortgage rates.
- Not ready to make a purchase? - Decide whether you want to rent or buy a home by reviewing your finances.
- Learn More - The best mortgage loan for you is determined by your needs. Find out more about FHA, VA and reverse mortgages to see which one is right for you.
Frequently Asked Questions About Mortgages in Connecticut
Lenders will take a look at your debt-to-income ratio. Generally, your housing expenses should not exceed 28% of your pre-tax monthly income and 36% of your gross pre-tax monthly income.
The average outstanding mortgage in Connecticut is $224,928.
The larger the down payment you make, the lower will be your monthly costs. If you can put 20% down, it will save you money on private mortgage insurance.
If you can only pay down less than 20% of your home loan, you will pay for private mortgage insurance. This is usually included in your monthly mortgage payment.
The average annual property tax in Connecticut is $4,658.
The average monthly mortgage payment in Connecticut is $1,209, which is around $50 more than the national average.
If you live in Connecticut, the median home value falls somewhere around $244,800.
sources
- State of Connecticut Department of Banking. "What To Know When Shopping for a Mortgage to Purchase a Home." Accessed March 3, 2022.