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Mortgage rates in Illinois

Interest rates on a 30-year $300,000 conventional mortgage start at around 3.125%

If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.188% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your Illinois home will depend on several factors, including your credit score, loan amount and lender.

Rates were last checked on October 6 and are from the Consumer Financial Protection Bureau (CFPB) website.

Your credit score affects the rate you’ll get

People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in Illinois by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).

Credit score $200,000 mortgage $300,000 mortgage $400,000 mortgage $500,000 mortgage
620-639 3.875% 3.875% 3.750% 3.750%
640-659 3.813% 3.750% 3.625% 3.625%
660-679 3.563% 3.563% 3.438% 3.438%
680-699 3.250% 3.250% 3.250% 3.250%
700-719 3.250% 3.250% 3.125% 3.125%
720-739 3.125% 3.125% 3.125% 3.125%
740-759 3.125% 3.125% 3.000% 3.000%
760-779 3.125% 3.125% 3.000% 3.000%
780-799 3.125% 3.125% 3.000% 3.000%
800+ 3.125% 3.125% 3.000% 3.000%

*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage

Interest rates vary by lender

Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.

Comparing lenders can help you find the best deal. Select See rates to provide the company with basic property and financial details for personalized rates.

Name Product Loan products offered State availability Min. credit score
SoFi
(NMLS #1121636)
SoFi
Conventional, Home equity, Refinance
Not available in: HI, MO, NM, NY, WV
620
No hidden fees, multiple loan terms, and member discounts available.
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
Better
(NMLS #330511)
Better
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
620
Online preapproval in minutes and no origination fees with this direct lender.
LendingTree
(NMLS #1136)
LendingTree
Conventional, Jumbo, FHA, VA, USDA, Home Equity, HELOC, Reverse, Refinance
Available in all states
620
Connect with vetted home loan lenders quickly through this online marketplace.
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Compare up to 4 providers

Interest rates also vary by loan type

The type of loan you get can also affect how much you pay for your Illinois home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.

Loan type $200,000 mortgage $300,000 mortgage $400,000 mortgage $500,000 mortgage
15-year conventional 2.500% 2.500% 2.375% 2.375%
30-year conventional 3.250% 3.250% 3.125% 3.125%
15-year FHA 2.750% 2.375% Not eligible Not eligible
30-year FHA 3.125% 3.125% Not eligible Not eligible
15-year VA 2.875% 2.625% 2.625% 2.563%
30-year VA 3.125% 3.188% 3.125% 3.125%

*Based on a 10% down payment, fixed interest rate and 710 credit score

Research ahead of time to get the best rates

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.

Home values in Illinois are set to rise, but not as much as other states

Fueled by low interest rates and buyer demand, housing prices are on the rise in Illinois. According to Zillow, the price of a typical home increased by 12.7% in the 12 months prior to June 2021, with a median home price of $237,462.

In Chicago, Zillow also finds home prices are forecast to increase by 11.6% by June 2022, which is slightly behind Rockford’s projected growth rate of 12.7% and Rutland’s rate of 17.5% — the highest in the state. As for homes in the rest of the Prairie State, projected growth is typically less than 12%.

While the prices of homes in Illinois are rising more slowly than in other states, waiting to enter the market may cause you to miss out on today’s record low interest rates, which could give you increased buying power.

5 fast facts about the Illinois housing market

If you’re looking to settle down in Illinois, here are five facts to consider:

  1. The average price tag of a home in Illinois is $233,661 as of June 2021, which is 20% less than the national average.
  2. The average monthly cost to own a home in Illinois is $1,693 with a mortgage, which is a bit pricier than the national average.
  3. According to data from ClosingCorp, buyers pay an average of 2.51% in closing costs with taxes, which is $4,894 to $6,530 for a typical home.
  4. Average property taxes in Illinois are approximately 2.16% of the assessed home value, but taxes can be higher or lower, depending on the county.
  5. While it may be advisable to hire a lawyer when closing on a home, it’s not legally required in Illinois.

Bottom line

Mortgage rates in Illinois vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.

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