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Illinois Mortgage and Refinance Rates
Current mortgage rates in Illinois
As of Monday, January 20, 2025, current interest rates in Illinois are 6.98% for a 30-year fixed mortgage and 6.25% 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.
Refinance rates in Illinois
With refinance rates still far above the historic lows of the pandemic, it might not be the best time for many homeowners to refinance their mortgages. But if rates drop in 2025, more people might opt to refinance.
In addition, those who have owned their homes for a while are likely to have much more equity now due to rapid home appreciation over the past few years. 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. For much of 2024, rates fluctuated between 6 and 7 percent before ending the year above 7 percent. Looking ahead to 2025 at large, many housing economists predict rates will dip back into that 6 to 7 percent range and remain there.
When high mortgage rates are coupled with high housing prices, home affordability becomes a challenge for many prospective buyers. The median price of a home in Illinois was $285,000 as of November 2024, according to the Illinois Realtors Association — a 7.5 percent year-over-year jump. And in the state’s biggest city, Chicago, the increase was even bigger: The median home price rose by 13 percent from the year prior to $365,000.
National mortgage rates by loan type
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 7.11% | 7.16% |
| 15-Year Fixed Rate | 6.39% | 6.47% |
| 5-1 ARM | 6.56% | 7.11% |
| 30-Year Fixed Rate FHA | 7.07% | 7.12% |
| 30-Year Fixed Rate VA | 6.88% | 6.92% |
| 30-Year Fixed Rate Jumbo | 7.14% | 7.19% |
Rates as of Monday, January 20, 2025 at 6:30 AM
Mortgage statistics for Illinois
Home prices have been rising, but now so are the number of home sales. Here are some other stats about the Illinois housing market to inform your search:
- Median home value, Nov. 2024: $273,983
- Median home sales price, Nov. 2024: $285,000
- Median down payment, Oct. 2024: $31,625
- Median days on market, Dec. 2024: 53
- Homeownership rate, Q3 2024: 69.0%
Sources: ATTOM, U.S. Census Bureau, Redfin
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), 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 an FHA 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 1.25 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. 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 requires a minimum 640 credit score. 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 IHDA Access 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 program options.
Be sure to browse assistance programs local to where you’re looking to live, too. The Chicago Housing Authority, for example, offers up to $20,000 of grant assistance to qualifying current residents who want to become homeowners and up to $10,000 of assistance to those moving to Chicago.
How to find the best mortgage rate in Illinois for you
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Step 1: Strengthen your credit score
Before you start exploring mortgage rates in Chicago, Rockford or wherever you hope to call home in The Prairie State, give your finances a checkup. If your credit score needs work, taking the time to improve it could help you secure lower mortgage interest rates in Illinois. If your finances need some extra attention, taking the time to improve your credit score could help you secure lower mortgage interest rates in Illinois.
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Step 2: Determine your budget
To find the right mortgage in Illinois, you’ll need a good handle on how much house you can afford.
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Step 3: Know your mortgage options
There are a few different types of mortgages in Illinois, including conventional, FHA and VA loans.
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Step 4: Compare rates and terms from several lenders
To get the best Illinois mortgage rates, it’s a good idea to shop around. Try to get rates from at least three different banks or mortgage companies.
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Step 5: Get preapproved for a mortgage
Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.
Additional Illinois mortgage resources
- Illinois loan limits by county: Learn the conforming loan limit for your city or town.
- Illinois mortgage lenders: Compare rates and terms from lenders all around the state.
- How to buy a house in Illinois: Learn the ins and outs of homeownership in The Prairie State.
- Illinois housing market: Discover everything you need to know about the local real estate scene.
- Best homeowners insurance companies in Illinois: Compare policies from a variety of providers.
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.
Edited by: Laurie Richards, Editor, Home Lending
I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English.