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Mortgage rates in Illinois

The average mortgage rate can depend on the lender, loan type and where you live.

Updated

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Mortgage rates during the coronavirus

As mortgage rates fall to record lows in the wake of COVID-19, our partners are seeing an increase in demand for loans and refinancing. As they work through this influx of applications, you may see rates that are higher than expected — or no rates at all. We recommend comparing offers from multiple lenders to ensure you're getting the best deal possible.

Compare mortgage lenders in Illinois

Mortgage rates can vary slightly between conventional and government-insured loans in the Prairie State. Rates for 30-year mortgages average 4.765%, while 15-year mortgages average 4.151%. And interest rates should hold steady around 4% in the upcoming year.

How much do Illinois rates vary by loan?

Average mortgage rates for 30-year home loans ranged from 4.625% to 4.882% in 2018. Different factors like the term and type can affect your rate. Mortgages with a shorter loan term generally have lower interest rates.

2018 average rates in Illinois by loan type

Loan type15-year average rate30-year average rate
Conventional4.238%4.765%
FHA4.148%4.882%
VA4.068%4.625%
USDANot available4.786%

Based on data from ffiec.cfpb.gov.

To illustrate, if you borrow $115,000 with a 30-year conventional mortgage at 4.765%, you could see a monthly payment of $600, excluding taxes, fees and other costs specific to a mortgage. On the other hand, a $115,000 15-year conventional loan with an average rate of 4.238% might have a monthly payment of $864.

Although the 15-year loan has a higher monthly payment than the 30-year loan, it could potentially save $60,740 in interest payments over the course of the loan.

Mortgage rates in Illinois will probably hold steady around 4% in 2020.

Historically, Illinois mortgage rates either match or are slightly higher than the national average. Housing authorities expect the national mortgage rate to stay in the upper 3%. For instance, the Mortgage Bankers Association predicts rates to average about 3.9%, while Freddie Mac calls for rates around 3.7%. Illinois mortgage rates should follow suit and vary slightly around 4%.

Compare mortgage rates throughout Illinois

Average mortgage rates and home prices fluctuate slightly across geographic areas in Illinois. That means that even if two borrowers have the same interest rate, a larger loan amount leads to higher monthly payments.

We analyzed data from the Home Mortgage Disclosure Act to estimate what you might pay on the average 30-year fixed-rate mortgage in a given metropolitan area in Illinois. These rates and amounts don’t account for taxes, private mortgage insurance and other charges specific to a home loan.

Metropolitan statistical area (MSA)Average mortgage rateMedian loan amountEstimated monthly cost
Bloomington4.802%$145,000$760
Cape Girardeau MSA (Alexander County, IL)5.001%$65,000$350
Carbondale-Marion4.799%$115,000$600
Champaign-Urbana4.741%$145,000$760
Danville4.975%$85,000$450
Davenport MSA (Henry, Mercer and Rock Island Counties, IL)4.774%$115,000$600
Decatur4.846%$95,000$500
Chicago MSA (DeKalb, Kane and Kendall Counties, IL)4.807%$195,000$1,020
Kankakee4.866%$145,000$770
Chicago MSA (Lake County, IL)4.757%$215,000$1,120
Peoria4.845%$115,000$600
Rockford5.047%$115,000$620
St. Louis MSA (Bond, Calhoun, Clinton, Jersey, Macoupin, Madison, Monroe and St. Clair Counties, IL)4.766%$145,000$760
Springfield4.683%$125,000$650

Based on data from ffiec.cfpb.gov.

How to get the best mortgage rate in Illinois

Here are some tips on how to get the most competitive mortgage rate:

  1. Examine different loan products. Lenders offer a variety of loan programs. Each program has its own set of loan terms, including interest rates.
  2. Polish your borrowing profile. Boost your credit score and reduce outstanding debt to qualify for the best rates.
  3. Weigh the closing costs. Some lenders advertise lower interest rates but charge higher closing costs. Closing costs in the state range between 1.94% and 2.9% of the purchase price. Weigh these costs and the interest rate together when choosing a loan.

Historical mortgage interest rates in Illinois

Bottom line

Illinois mortgage rates generally match or hover slightly above the national average. As housing authorities call for steady rates slightly under 4%, it might be a good time to consider a mortgage in Illinois. Compare loan programs and lenders to find the right loan for your homeownership goals.

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