Mortgage lender closing cost rankings in Vermont (2025)

Vermont uses a judicial foreclosure process, meaning lenders must go through the courts to foreclose on a property, which extends the timeline compared to non-judicial states. The state uses mortgages rather than deeds of trust as the primary security instrument. Vermont is an attorney closing state, meaning a licensed attorney must supervise the closing and title examination — buyers should budget for attorney fees as a required line item, not an optional one. Vermont imposes a property transfer tax on real estate sales; as of recent guidance the rate is 1.25% of the purchase price for most buyers, with a reduced rate applying to the first $100,000 of a primary residence purchase. The state does not use promulgated title insurance rates; insurers operate under a file-and-use system. Vermont does not have a standalone consumer financial protection bureau beyond federal oversight, but the Department of Financial Regulation supervises mortgage lenders and servicers. Prepayment penalty restrictions largely follow federal Qualified Mortgage rules.

Conventional loans dominate Vermont's purchase market by a wide margin, accounting for 85.0% of 2024 originations (3,394 loans) at a median rate of 6.625% and median costs of $4,698. FHA loans represent 8.0% of volume (319 originations), with notably higher median costs of $10,664 driven by upfront mortgage insurance premiums. VA loans account for 6.6% (263 originations) and carry the lowest median rate at 6.25%, though median costs of $8,331 reflect the VA funding fee. Vermont has no major active-duty military installation, so the VA share reflects veterans residing statewide rather than a base-concentration effect.