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Illinois Mortgage and Refinance Rates

On Monday, June 24, 2024, the national average 30-year fixed mortgage APR is 7.00%. The national average 30-year fixed refinance APR is 6.99%, according ... to Bankrate's latest survey of the nation's largest mortgage lenders.

Current mortgage rates in Illinois

As of Monday, June 24, 2024, current interest rates in Illinois are 7.00% for a 30-year fixed mortgage and 6.32% for a 15-year fixed mortgage. Before you buy, know your options and compare as many mortgage offers as you can to find the best deal.

The median sales price of a home in The Prairie State is $264,000 as of January 2024, well below the national median of $344,157, according to ATTOM. Still, that figure represents a nearly 8% increase year-over-year, while the size of the median down payment jumped 23.5%. These gains, and the fact that the number of homes sold in the state actually fell a full percentage point, suggests that affordability is a challenge for Illinois residents, as for aspiring homeowners around the country.

Refinance rates in Illinois

While mortgage refinance rates have more than doubled since the pandemic, many Illinois homeowners have much more tappable equity now: The average mortgage-holder has gained $24,000 since 2023, according to CoreLogic. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

Illinois mortgage rate trends

While mortgage rates are difficult to predict, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in Illinois.

National mortgage rates by loan type

Product Interest Rate APR
30-Year Fixed Rate 6.95% 7.00%
15-Year Fixed Rate 6.39% 6.47%
5-1 ARM 6.52% 7.86%
30-Year Fixed Rate FHA 6.94% 6.98%
30-Year Fixed Rate VA 7.04% 7.08%
30-Year Fixed Rate Jumbo 7.05% 7.10%

Rates as of Monday, June 24, 2024 at 6:30 AM

 

 

Mortgage statistics for Illinois

While home prices have risen, home sales actually fell in Illinois last year. Here are some other state stats:

  • Most popular cities: Chicago, Rockford, Naperville, Aurora, Springfield
  • Most affordable counties (based on median home value): Jefferson, Pulaski, Massac, Clay, Franklin
  • Median home value, Jan. 2024: $247,110
  • Median home sales price, Jan. 2024: $264,000
  • Median down payment, Jan. 2024: $28,500
  • Homeownership rate, Q4 2023: 66.8%

Sources: ATTOM, U.S. Census Bureau

Mortgage options in Illinois

If you’re looking to get a mortgage in Illinois, there are several options depending on what you qualify for:

  • Illinois conventional mortgages: To be eligible for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 43 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
  • Illinois FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
  • Illinois VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which starts at 2.15 percent for homebuyers who haven’t obtained a VA loan in the past.

First-time homebuyer programs in Illinois

If you’d like to become a homeowner in Illinois, the state can help make it easier and more affordable. The Illinois Housing Development Authority (IHDA) offers several Illinois first-time homebuyer assistance programs, including fixed-interest mortgages and down payment assistance loans through its Access Mortgage initiative. This includes:

  • IHDA Access Forgivable Mortgage: The IHDA Access Forgivable Mortgage program offers fixed-rate 30-year mortgages via participating lenders. To find the best mortgage lender, the IHDA website has a tool to help you find one in your area. Through this program, you can get 4 percent of the home purchase price, up to $6,000, as a closing cost and down payment assistance loan. You don’t need to pay this loan back as long as you live in the home for at least 10 years. Qualifying for the IHDA Access Forgivable Mortgage requires a minimum credit score of 640. You also need to meet certain income and purchase price limits that vary by county.
  • IHDA Access Deferred Mortgage: The IHDA Access Deferred Mortgage program offers a 30-year fixed-rate mortgage through an FHA, VA, USDA or HFA Preferred (conventional) loan. You can also take out a loan worth 5 percent of the home’s purchase price, up to $7,500, to help you pay for closing costs and the down payment. This is an interest-free loan, and you don’t need to pay it back until the end of your loan term, or when you sell your home or refinance your mortgage. To qualify, you need a credit score of at least 640. The same income and purchase price limits as with the IHDAccess Forgivable Mortgage apply.
  • IHDA Access Repayable Mortgage: The IHDA Access Repayable Mortgage program offers a 30-year fixed-rate mortgage. Your loan options include an FHA, VA, USDA or HFA Preferred (conventional) loan. You also can get a down payment and closing cost assistance loan worth 10 percent of the purchase price, up to $10,000. To qualify, you’ll need to meet the same program requirements as the Deferred and Forgivable programs options.

How to find the best mortgage rate in Illinois for you

  • Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
  • Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
  • Step 3: Know your mortgage options - There are a few different types of mortgages.
  • Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
  • Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Lender compare

Compare mortgage lenders side by side

Mortgage rates and fees can vary widely across lenders. To help you find the right one for your needs, use this tool to compare lenders based on a variety of factors. Bankrate has reviewed and partners with these lenders, and the two lenders shown first have the highest combined Bankrate Score and customer ratings. You can use the drop downs to explore beyond these lenders and find the best option for you.

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Garden State Home Loans

NMLS: 473163

State License: MB-473163

3.6

Rating: 3.6 stars out of 5
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Rating: 4.98 stars out of 5

5.0

562reviews

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Homefinity

NMLS: 2289

State License: 4965

4.5

Rating: 4.5 stars out of 5
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Rating: 4.94 stars out of 5

4.9

1064reviews

Additional Illinois mortgage resources

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Edited by: Troy Segal, Senior Editor, Home Lending

I’ve been writing and editing stories in the personal finance sphere for two decades, for publications like Business Week and Investopedia, covering everything from entrepreneurs to taxes. Since coming to Bankrate, I’ve concentrated on real estate, mortgages, renovations and other financial aspects of homeownership — helping people understand how a home isn’t just a place to live, but an investment that’s important to building and bequeathing wealth. 

Read more from Troy Segal