Current Illinois Mortgage and Refinance Rates

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Current 30 year-fixed mortgage rates are averaging: 6.92% Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

Current 15-year fixed mortgage rates are averaging: 6.28% Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

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Refinance rates in Illinois

• Rate-and-term refinances give you a chance to change either your interest rate or loan term — or even both. Typically, homeowners will want to reduce their overall costs by lowering their interest rate and/or shortening their loan term. You can also shrink your monthly mortgage payments by lengthening the loan term. Average refinance rates are roughly on par with purchase mortgage rates in Illinois. However, the gap is a little larger with conventional loans, which are around 0.35 percentage points lower for a purchase.
• Cash-out refinances allow homeowners with sufficient home equity to borrow cash at the same time as they refinance a primary mortgage. Cash-out refinances usually come with higher rates than regular refinances.
• Conventional refinances aren’t a part of a government loan program. In most cases, their rates are higher than government-backed refinance rates.
• FHA refinances are insured by the Federal Housing Administration (FHA) — they’re a more accessible option for many borrowers, especially those with imperfect credit. FHA loan rates are lower than conventional refinance rates by about 0.79 percentage points in Illinois.
• VA refinances, which are backed by the U.S. Department of Veterans Affairs (VA), aren’t an option for everyone. However, if you have VA loan eligibility, you can enjoy very low interest rates, very forgiving qualification requirements and the ability to put zero money down.

Current 30 year-fixed mortgage refinance rates are averaging: 7.15% Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

The current average rate for a 15-year fixed mortgage refinance is: 6.68% Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

See whether refinancing makes sense for you using our mortgage refinance calculator.

On this page

• Mortgage rate trends
• How to get the best mortgage rate for a Illinois home loan
• 2024 Illinois home loan programs
• Learn about different types of IL mortgage loans
• Featured resources

What is the current mortgage rates forecast for 2024?

The current mortgage rates forecast is for rates to remain fairly steady in the short term and, over the course of the year, inch downward. Our market expert, Jacob Channel, is cautiously optimistic about 2024 and predicts 30-year mortgage rates will end the year closer to 6% than 7%. However, he also warns that affordability won’t jump up substantially any time soon. For that, we’ll need to see lower rates as well as an influx of housing stock, since part of the current affordability crisis is that there just aren’t enough homes for sale.

How do I get the best mortgage rate for my Illinois home loan?

Several factors determining mortgage rates are out of your control, but there are a few steps you can take to get the best mortgage rate:

1. Boost your credit. The higher your credit score, the better you can expect to do when searching for low rates.
2. Lower your debt-to-income (DTI) ratio. A lower DTI ratio usually means lower interest rates. Your DTI ratio captures how heavy your debt load is, and you can lower it by increasing your income, paying off some debts or getting a cosigner.
3. Buy a single-family, site-built home. The lowest interest rates go to those who buy the most traditional type of housing and plan to live in it full time. If you avoid buying a manufactured home, a multifamily property, a vacation home or an investment property, you can get a better rate.
4. Pay for mortgage points.Mortgage points offer borrowers a quid pro quo deal: pay a lump sum upfront and, in exchange, enjoy a lower interest rate for your entire mortgage term. This can save you a lot of money in interest charges, but you’ll need to stay in the home long enough to break even.
5. Compare offers from multiple lenders. Shopping for the best rate is easy to do, especially if you use an online rate comparison site. Simply choosing the lowest rate among three to five offers can save you thousands over the life of your loan, according to LendingTree data.

When should I lock in my mortgage rate?

When you’ve landed on a loan offer that works for you, it’s time to request a mortgage rate lock. “Locking in” your rate means that the rate you see in your loan offer won’t go up, even if national average interest rates do. This way, you’re guaranteed the rate you agreed to as long as you close on the loan within the specified amount of time.

The Illinois Housing Development Authority (IHDA) has several down payment assistance programs, available to both first-time homebuyers and repeat buyers.

IHDAccess Repayable down payment assistance

If you’re looking for the most assistance you can get from an IHDA program, this is it. You can access up to $10,000 with a repayable second mortgage, and use the funds toward a down payment or closing costs. You’ll have to make monthly payments on those funds for 10 years, but you won’t pay any interest.

Who qualifies?

Borrowers must:

Use the program in conjunction with an IHDA mortgage
Have a 640 minimum credit score
Have a maximum 50% DTI ratio
Earn within the program’s income limits
Purchase a home within the program’s price limits
Contribute at least 1% of the purchase price or $1,000 (whichever is larger) from their own funds

IHDAccess Forgivable down payment assistance

This program offers 4% of your first mortgage amount in down payment assistance, up to $6,000. If you’d rather have a “silent” second mortgage, this program may work better for you. “Silent” means that you won’t have to make any payments on the down payment assistance funds along the way. Instead, the money will be forgiven over time and, as long as you remain in the home for 10 years, you won’t have to repay it.

Who qualifies?

Borrowers must:

Use the program in conjunction with an IHDA mortgage
Have a 640 minimum credit score
Have a maximum 50% DTI ratio
Earn within the program’s income limits
Purchase a home within the program’s price limits
Contribute at least 1% of the purchase price or $1,000 (whichever is larger) from their own funds
Live in the home for 10 years to avoid payment

IHDAccess Deferred down payment assistance

If you’re looking for down payment assistance but know you may not be able to stay in the home for 10 years, this program could be your best bet. It offers you 5% of your mortgage amount (up to $7,500) as a silent second mortgage, so you won’t have to pay interest or juggle two different mortgage payments. However, the funds do have to be repaid when you pay off the mortgage, sell the home or refinance. If none of these events happen, you’ll have to repay the loan after 30 years.

Who qualifies?

Borrowers must:

Use the program in conjunction with an IHDA mortgage
Have a 640 minimum credit score
Have a maximum 50% DTI ratio
Earn within the program’s income limits
Purchase a home within the program’s price limits
Contribute at least 1% of the purchase price or $1,000 (whichever is larger) from their own funds

Learn about different types of IL mortgage loans

→ Illinois conventional loans. You’re likely familiar with conventional loans, the industry standard for borrowers who can meet the minimum requirements set by Fannie Mae and Freddie Mac.

→ Illinois FHA loans. FHA loan requirements are a more accessible option for borrowers with credit scores that won’t allow them to qualify for a conventional loan. Those with credit scores as low as 500 can get into an FHA loan, as long as they make a 10% down payment. For those with a 580 score (or above), you’ll also have the option to put down as little as 3.5%.

→ Illinois VA loans. Military borrowers can access several great loan options through the VA. VA loan requirements are designed to be reachable for military service members and come with some big advantages. For instance, you can purchase or refinance without making a down payment or paying for mortgage insurance.

→ Illinois streamline refinances require less paperwork and processing time than other refinance types. The “streamline refinance” name encompasses both FHA streamline refinance loans and VA interest rate reduction refinance loans (IRRRLs). Just know that they come with one big limitation: you can only refinance from an FHA loan into an FHA loan, or from a VA loan into a VA loan.

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