Mortgage lender closing cost rankings in Connecticut (2025)

Connecticut uses a mortgage instrument (not a deed of trust), and foreclosure is a judicial process — lenders must file suit in Superior Court to foreclose, which typically extends timelines compared to non-judicial states. Connecticut is an attorney closing state: a licensed attorney must conduct or supervise the closing, which adds a mandatory legal fee to every transaction. The state imposes a conveyance tax (transfer tax) on real property sales; the base rate is 0.75% of the sales price, with a surcharge applying to properties above $800,000, typically paid by the seller. Title insurance rates in Connecticut operate under a prior-approval system, meaning insurers must file rates with the Connecticut Insurance Department and receive approval before using them. Connecticut does not broadly prohibit prepayment penalties on conventional loans but federal rules govern most conforming products. The Connecticut Department of Banking supervises mortgage lenders and brokers and maintains a consumer complaint process. First-time buyers should budget for the mandatory attorney fee, which is a non-negotiable cost unique to attorney-closing states.

Conventional loans dominate Connecticut's purchase market, accounting for 79.1% of 2024 originations per HMDA data, reflecting the state's relatively high home prices and a borrower pool with generally sufficient credit and down payment resources. FHA loans are the next largest segment at 15.1% of volume, serving buyers with smaller down payments or lower credit scores — a meaningful share in higher-cost markets like Hartford and New Haven. VA loans represent 5.7% of originations, supported by proximity to several military installations in the region. USDA loans are rare at 0.2%, consistent with Connecticut's predominantly suburban and urban character and limited rural-eligible zones.