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Mortgage rates in Chicago

By Claes Bell · Bankrate.com
Thursday, February 16, 2017
Posted: 9 am ET

A number of important mortgage rates rose in the Chicago area this week.

Key 30-year rate higher in Chicago

The average rate on the benchmark 30-year fixed-rate mortgage rate for the Chicago area moved upward to 4.26 percent, according to Bankrate's national survey of large lenders. While the local rate was up 5 basis points from last week, it sat below the national average rate of 4.35 percent. A basis point is one-hundredth of 1 percentage point.

The mortgages in this week's survey had an average of 0.25 discount and origination points.

"With the 30-year fixed rising, it means that homebuyers and refinancers will find it more costly to borrow," says Holden Lewis, Bankrate's senior mortgage analyst.

The climb in the mortgage rate raised 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $812.67, an addition of $4.84 from last week.

Other Chicago mortgage types mixed

Conversely, the average rate for 30-year jumbo mortgages fell this week, down 2 basis points to 4.05 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Chicago area, that limit is $424,100.

The average rate for 15-year fixed-rate mortgages grew to 3.51 percent, up 6 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage increased along with rates, ratcheting up $4.87 to $1,180.37.

"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less lucrative than it would have been before the rate rise," says Lewis.

The benchmark 5/1 adjustable-rate mortgage rate ticked upward 5 basis points this week, ratcheting up to 3.33 percent. The most common variety of variable-rate mortgage, 5/1 ARMs allow homeowners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after.

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Weekly mortgage survey

Results from Bankrate's survey of mortgage lenders conducted 2/15/2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $424,100 in the Chicago area.
30-year fixed 15-year fixed 5-year ARM 30-year jumbo
This week's rate: 4.26% 3.51% 3.33% 4.05%
Change from last week: +0.05 +0.06 +0.05 -0.02
Monthly payment: $812.67 $1,180.37 $725.35 $2,036.96
Change from last week: +$4.84 +$4.87 +$4.56 -$4.90

Methodology: The "Bankrate.com National Average," or "national survey of large lenders," is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison.

To learn more about the different rate averages Bankrate publishes, see "Understanding Bankrate's Rate Averages."

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