Interest Rate
Average home price

Do you believe you should buy a home in Illinois? Getting a good mortgage rate can be key. Your mortgage lender will scrutinize every aspect of your financial situation before approving a mortgage rate, from your income and assets for down payment to your debt-to-income ratio and your credit score.

If you want the best mortgage rate in Illinois, you’ll check your credit and pay down as much debt as possible. Pull together your documents proving income and assets, and apply for preapproval through a reputable mortgage lender before checking home listings in Illinois.

Here’s a quick look at current Illinois mortgage rates:

Loan Program Mortgage Rate APR* 1 Day Change
Conventional 30 year fixed 6.467% 6.547% -0.12%
Conventional 20 year fixed 5.977% 6.058% Unchanged
Conventional 15 year fixed 5.817% 5.955% +0.06%
Conventional 7 year ARM 6.625% 7.528% Unchanged
Conventional 5 year ARM 6.75% 7.718% -0.02%
VA 30 year fixed 5.943% 6.217% Unchanged
VA 15 year fixed 5.429% 5.941% -0.15%
VA 5 year ARM 6.183% 7.023% Unchanged

Data source: ©Zillow, Inc. Use is subject to the Terms of Use

Buying a Home in Illinois

Illinois has it all, big cities and endless fields, hence its nickname as the Prairie State. Buying a home in Illinois starts with knowing whether you are a country mouse or a city mouse.

Illinois has a population of nearly 13 million. Nearly one in four live in Chicago, with another one in fifteen living in the state’s five next biggest cities:

  • Chicago
  • Aurora
  • Rockford
  • Joliet
  • Naperville
  • Springfield (state capital)

Buying a home in Illinois can be an adventure. Illinois could be affordable, but plenty of luxury homes exist. Illinois ranks 29th in US homes for sale at average price, and 9th for homes over $1,000,000. Apply for mortgage preapproval before you start looking at home listings in Illinois, so you don’t waste time outside your budget.

First-time Homebuyers

Programs administered by the Illinois Housing Development Authority (IHDA) can assist first-time homebuyers in purchasing a home in Illinois. Through IHDA’s Access Mortgage initiative, Illinois residents gain access to fixed-rate loans offered through a network of partner lenders.

The IHDA Access Forgivable Mortgage provides closing costs and down payment assistance equal to $6,000 or 4% of the purchase price, whichever is lesser. This assistance doesn’t need to be paid back after you’ve lived in the home for 10 years.

The IHDA Access Deferred Mortgage provides closing costs and down payment assistance equal to $7,500 or 5% of the purchase price, whichever is lesser. This assistance is an interest-free loan, and doesn’t need to be paid back until the loan matures or the home is sold or refinanced.

The IHDA Access Repayable Mortgage provides closing costs and down payment assistance equal to $10,000 or 10% of the purchase price, whichever is lesser. This loan is designed to be repaid in monthly installments over 10 years.

To qualify for an IHDA you must:

  • Have a minimum credit score of 640
  • Meet certain income and purchase price limits
  • Take a homeowners course (in some cases)

Refinancing in Illinois

Low Illinois mortgage rates can make refinancing an attractive option. You can do any of the following:

  • Save on interest over the life of the loan
  • Lowering your monthly payment
  • Cash-out equity
  • Remove PMI (private mortgage insurance) requirements

A streamlined refinance is often an option for specific loan types. Ask your lender for more information.


Buying a Home?

Each step-by-step guide is designed to shepherd you through a process from start to finish. Know what to expect and how to proceed, no matter where you are in your home buying journey.

1 The First Step in Buying a Home – Preapproval

What Is a Mortgage Preapproval? | How Much Will My Monthly Payment Be? | How Much Will My Down Payment Be? | How Long Does a Mortgage Preapproval Last? | What Is the Difference Between a Standard Preapproval and an Underwritten Preapproval?

Read More

3 How much money do I need?

How Can I Lower My Mortgage Payment? | How Can I Lower My Closing Costs? | When Do I Pay Out-Of-Pocket Costs? | What are Prepaid Items or Escrows? | What Will My Closing Costs Be?

Read More

4 The Basics of Mortgage

What Documents Need to be Updated During the Home Loan Process? | What Contingencies Do I Need? | How Important is the Closing Date? | Steps in the Loan Process | Understanding Common Mortgage Terms

Read More

5 Finding a Real Estate Agent

What Are the Top 6 Questions to Ask a Real Estate Agent? | Should I Use the Seller's Real Estate Agent? | Are Online Discount Realty Services a Good Idea? | How Much Does a Buyer's Real Estate Agent Cost? | Why Do I Need a Real Estate Agent to Buy a Home?

Read More
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