Illinois Mortgage Information | IL Mortgage Rates

A home is one of the most important purchases you’ll ever make. Not only does it provide shelter, comfort, and security, but it is also an investment that takes you a step closer towards financial freedom. That said, buying a home and understanding the Illinois mortgage process can be overwhelming. But don’t worry - we’re here to help!

 

Whether you’re looking for a home in Peoria off of Interstate 74, a condo in Chicago that overlooks Lake Michigan, or a rustic house in Madison County, we can help give you the information you need, when you need it.

 

Is a Fixed Rate Mortgage Right for Me?

A Fixed Rate Mortgage is one of the most popular Illinois mortgage types because it is simple and stable. A Fixed Rate Mortgage has an interest rate that is "fixed" for the life of the loan. This means that your monthly mortgage payment will be the same every month for ’x’ number of years. Most Fixed Rate Mortgages in Illinois have a 30-year loan term, although you can get a shorter term at a lower mortgage rate.

 

A Fixed Rate Mortgage is a good option for IL homebuyers who:

  • plan to live in their home for at least 7 years;
  • are living on a fixed income that is unlikely to increase;
  • are able to lock in a low interest rate;
  • want a stable and predictable monthly mortgage payment.

 

Who Should Get an Adjustable Rate Mortgage?

Unlike a Fixed Rate Mortgage, and Adjustable Rate Mortgage has an interest rate that falls or rises as general market rates fall or rise. One advantage of an Adjustable Rate Mortgage in Illinois is that they usually begin with a relatively low interest rate for a set time period (usually 7 years or less). After this time period, the rate adjusts to market rates. In most cases, sooner or later, the interest rate of an Adjustable Rate Mortgage will rise, and your monthly payment will increase. If you choose an Adjustable Rate Mortgage, be sure to ask your Illinois mortgage lender about the rate cap, which limits how high your interest rate can increase.

 

An Adjustable Rate Mortgage is a good option for IL homebuyers who:

  • might move from their home in the next few years;
  • are comfortable with varying monthly mortgage payments;
  • expect an increase in income in the coming years;
  • need to qualify for a more expensive home (the low initial interest rate gives you more buying power).

 

How Can I Reduce my IL Mortgage Payment?

If you already have an Illinois mortgage but need a lower monthly mortgage payment, consider refinancing or loan modification. Refinancing involves issuing a brand new loan at a lower rate and/or longer term. Refinancing is generally reserved for Illinois homeowners with good credit who are not behind on their mortgage payments.

 

Loan modification, on the other hand, involves simply modifying the existing Illinois loan to make it more affordable. Loan modification has an easier and faster application process and is available to IL homeowners who are already behind on their mortgage payments. Unlike refinancing, you do not have to repay closing costs when you modify your loan.

 

We’re Here to Help!

Whether you’re in the market for a split-level in Springfield, a Victorian in Naperville, or a cabin near Illinois’s beautiful Nauvoo State Park, we can help you! Why wait? Contact us today and we’ll match you with a trusted, professional Illinois mortgage lender who can provide you a free no obligation mortgage rate quote!