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Vermont Mortgage Calculator

Break down the true cost of the Green Mountain State. Budget for high 1.90% property taxes, navigate the Act 250 housing squeeze, and factor in massive winter heating oil costs.

No signup| Accurate limits| Includes taxes & ins.

Home Price

Down Payment10.0%

Loan Term

Interest Rate

1.90% High Tax Rate| Heating Oil Expense| VHFA DPA Loans

The Out-of-State Premium

Vermont is a beautiful, highly rural state with a housing market that is heavily distorted by outside factors. The statewide median home price is approximately $385,000, though near Burlington and major ski resorts (like Stowe or Killington), prices are exponentially higher.

The market is driven by two main constraints. First, "Act 250" is a famously strict environmental land-use law that makes building new subdivisions extremely difficult. This artificially chokes the housing supply. Second, Vermont is a prime target for wealthy buyers from Boston and New York City who purchase second homes or remote-work properties. This combination prices many local, median-wage earners out of the market.

The 1.90% Property Tax Burden

Vermont has some of the highest property taxes in the country, averaging 1.90%.

On a modest $385,000 home, you will owe roughly $7,300 a year in taxes. This adds over $600 directly to your monthly mortgage payment. However, Vermont uses an "income-sensitive" system; if your household income is below a certain threshold, you may qualify for a property tax adjustment to lower this burden.

The Hidden Cost: Winter Heating Fuel

When budgeting for a home in Vermont, you MUST calculate your winter heating costs. Natural gas is not available in most rural areas.

You will likely rely on delivered Heating Oil or Propane. Winters in Vermont are brutal and last for six months. Filling a 275-gallon oil tank multiple times a winter can easily cost $3,000 to $5,000+ out of pocket. This is a massive housing expense that is NOT included in your monthly mortgage escrow.

State Assistance: VHFA

To combat these high upfront and ongoing costs, the Vermont Housing Finance Agency (VHFA) provides critical assistance to local buyers.

ASSIST Loan: Provides a 0% interest, deferred loan to help cover down payment and closing costs. You do not make monthly payments on this; it is only repaid when you sell, refinance, or pay off the original mortgage.
First Generation Program: For buyers whose parents did not own a home, VHFA offers enhanced grants to help build generational wealth in the state.

Calculating Your Vermont Budget

Let's construct a budget for a typical $385,000 home purchase outside the main Burlington metro, utilizing a 10% down payment and a 6.5% interest rate:

Mortgage Amount: $346,500
Principal & Interest: ~$2,190/mo
Property Taxes (1.90%): ~$609/mo
Home Insurance: ~$91/mo
Total Payment: ~$2,890/mo

Remember: This does NOT include your $400+/month winter heating oil expense. Add ~$100/mo if you have PMI.

Crucial New England Inspections

Septic and Well Systems: Because Vermont is so rural, municipal sewer and water are rare outside of cities. You MUST pay for a well flow/quality test and a septic dye test. A failing septic leach field can cost $20,000+ to replace.
Oil Tank Inspections: Ensure the inspector checks the condition of the basement heating oil tank. A rusting, leaking oil tank creates an environmental hazard that the homeowner is financially responsible for cleaning up.
Radon Gas and Lead Paint: Due to the bedrock, radon gas in basements is very common. Furthermore, the housing stock is very old; homes built before 1978 should be assumed to contain lead paint.

Frequently Asked Questions

Are property taxes high in Vermont?

Yes, Vermont has some of the highest property taxes in the nation, with an effective rate hovering around 1.90%. However, the state has an 'income-sensitive' tax system, meaning lower-income residents may qualify for a property tax adjustment to lower their burden.

What is Act 250 and how does it affect housing?

Act 250 is Vermont's incredibly strict land-use and environmental law. While it brilliantly preserves the state's natural beauty, it makes developing new housing extremely difficult, expensive, and time-consuming. This severe lack of new construction drives existing home prices very high.

What is the VHFA ASSIST program?

The Vermont Housing Finance Agency (VHFA) offers the ASSIST program, which provides a zero-interest, deferred loan to help eligible first-time buyers cover their down payment and closing costs. It does not need to be paid back until you sell or refinance the home.

Why is Vermont real estate so expensive relative to local wages?

The market is heavily distorted by out-of-state money. Buyers from New York City and Boston purchase massive amounts of inventory in Vermont as second homes, vacation homes, and ski properties, which prices out local residents.

What is the biggest hidden cost of living in Vermont?

Winter heating. The vast majority of rural Vermont homes are heated by delivered fuel oil or propane, rather than natural gas. Filling an oil tank during a brutal six-month winter can easily cost $3,000 to $5,000+ per year out of pocket.