Today's Mortgage Rates in Illinois

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What Affects Mortgage Rates in Illinois

The rates on this page can be a starting point, but your mortgage interest rate in Illinois will be a reflection of both market conditions and your personal situation. Keep in mind that the interest rate and APR aren't the same. The interest rate affects your monthly principal and interest payment, while the APR includes certain fees.

Other factors that affect your rate include:

Federal Reserve policy and inflation: Fed policies have an impact on mortgage rates. Rates might rise when inflation is high and the Fed sets out aggressive policy to curb it, while cooling inflation and relaxed Fed guidance can lead to lower rates.
Economic indicators: The broader economy, including unemployment, wage growth, and housing supply also affect investor expectations and lender pricing.
Your situation: Your personal finances have a major impact on what you’ll pay. Your credit score, debt-to-income ratio, down payment, and loan type all affect your final APR.

The rates on this page are based on certain, pre-set loan amounts and credit scores. To get a personalized rate that reflects both current economic conditions and your personal circumstances, you can connect with an experienced loan officer.

Types of Mortgages Available in Illinois

Whether you’re buying a home in Chicagoland or a rural southern Illinois community, you have access to a wide range of home loans to meet your needs. Here are a few common examples:

Conventional Fixed-Rate Mortgages: These loans have a fixed interest rate for the full loan term, meaning payments on principal and interest are predictable throughout the life of the loan. Common terms are 15 or 30 years. Conventional loans conform to Fannie Mae and Freddie Mac guidelines for underwriting and loan amounts. You'll typically need a credit score of at least 620 and a debt-to-income ratio under 43-45% to qualify. Qualifying borrowers, including many first-time homebuyers, can have a minimum down payment as low as 3%, but you’ll likely need to make a down payment of at least 5%. Having a fixed rate means the interest rate stays the same for the full loan term, which is usually 15 or 30 years. Private mortgage insurance (PMI) is required if your down payment is less than 20%, but that can usually be canceled once you gain enough equity.
Adjustable-Rate Mortgages (ARMs): Adjustable-rate mortgages, or ARMS, generally start with a period of fixed interest rates before the rate periodically adjusts. Common fixed-rate periods for ARMS are between 5 and 7 years. If you see a 5/1 ARM, for example, that means the loan has an initial fixed rate period of 5 years and annual adjustments afterwards. Payments can change after the introductory period, but many ARMs come with rate caps to limit how much they can change. Like other conventional loans, PMI may be required if your down payment is less than 20%.
FHA Loans: FHA loans are backed by the Federal Housing Administration and have more flexible down payment and credit score requirements. If you have a credit score of 580 or higher, you might qualify with a down payment as little as 3.5%. Mortgage insurance premiums (MIP), including an upfront premium and ongoing monthly payments, are required regardless of down payment size. If you have a down payment of less than 10%, MIP generally lasts for the life of the loan unless you refinance into a conventional mortgage. If your down payment is 10% or higher, MIP ends after 11 years.
VA Loans: VA are open to eligible veterans, active-duty service members, and surviving spouses. They come with competitive terms, including no down payment or private mortgage insurance requirements. They do require a one-time VA funding fee, but that can be financed. Some veterans, like those with disabilities related to their service, aren't required to pay the funding fee.
Jumbo Loans: Jumbo loans are higher than conforming loan limits, and generally come with stricter underwriting requirements. Conforming limits are higher in high-cost counties, but those limits can vary year to year. Most Illinois counties conform to the same baseline limit.

Refinancing a Mortgage in Illinois

Illinoisans also have access to a number of refinancing options to lower their rate or tap into their home's equity:
- Rate-and-term Refinance: This is a simple and common refinance that replaces your existing mortgage with a new one. That could mean refinancing from a 30 year mortgage to a shorter-term loan to shorten your payoff timeline, or taking advantage of lower interest rates to reduce your monthly payment.
- Cash-out Refinance: This refinance replaces your existing mortgage with a new, larger one and lets you take a portion of your equity out as cash. The amount you can access depends on your home value, how much you still owe, lender loan-to-value limits, and closing costs. Unlike a home equity loan or HELOC, which come as second loans, a cash-out refinance replaces your primary mortgage with a new one.

Are there homebuyer assistance programs in Illinois?

The Illinois Housing Development Authority offers several mortgage assistance programs, including a forgivable down payment loan to qualifying buyers.

The IHDA also offers deferred down payment assistance to qualifying buyers in the form of an interest-free loan that doesn't need to be repaid until a home is sold, refinance, or paid off. Both of those loans have certain eligibility requirements, including a minimum credit score requirement.

Does credit score affect mortgage rates?

Credit score has a major impact on your mortgage rates, with higher credit scores generally meaning lower interest rates.

Your credit score isn't the only thing that affects your mortgage rate, however. Your downpayment, debt-to-income ratio, loan term, and other factors will also affect your rate.

Larger factors, like inflation and the broader economy, also have a major impact on your rate.

How will property taxes and insurance in Illinois
affect my mortgage payment?

Property taxes are often included in your mortgage payment as part of an escrow account. If that's the case, it means your lender will collect property tax payments each month and pay the tax bill for you. Some loan types, like FHA and VA loans, sometimes require escrow accounts.

Illinois has higher effective property taxes statewide than most other states, according to the Tax Foundation.

Keep in mind property tax can vary significantly within a state, with urban areas generally higher than those in rural areas.

Homeowners insurance can also affect your mortgage payment if it's bundled into your premium with an escrow account. Your home's location, and whether it's in an area that is affected by natural disasters like floods, plays a major impact on your insurance cost. Details about your home, like its size, age, and condition can also affect your payment.

Loan Officers in Illinois

John Hendriksen

Loan Officer

NMLS ID# 2226011

Today's Mortgage Rates in Illinois

Current Illinois Mortgage and Refinance Rates

Legal Disclosures

Get your personalized rate

What Affects Mortgage Rates in Illinois

Types of Mortgages Available in Illinois

Refinancing a Mortgage in Illinois

Learn more about mortgage rates in Illinois

Loan Officers in Illinois

John Hendriksen

Lester Tutak

Jordan Abdel-Haq

Diane Musillo

Kelly Clodi

Mark Zenner

Steven Hendriksen

Jose Rodriguez

Scott Ellis

Cynthia Piazza

David Hochberg

Ron Bacza

Keri Konopiots