Illinois Mortgage Rates
Illinois Mortgage Rates: Illinois Mortgage Rates Are Finally Stable
January 25, 2011 (FreeRateUpdate.com) – Last week, Illinois mortgage rates had spiked up because of pessimism in home construction and dips in mortgage backed securities prices. Fortunately, mortgage rates in Illinois have remained unchanged. A 30-year fixed rate conforming mortgage in Illinois has a mortgage rate of 4.625 percent. A 15-year fixed rate conforming mortgage has a rate of 4.000 percent. An Illinois 5/1 adjustable rate mortgage has a mortgage rate of 3.125 percent. For those Illinois borrowers who exceed the qualification guidelines can expect to obtain a home mortgage loan at these steady mortgage rates with only 0.7 to 1.0 origination points. Likewise, last week the FHA home mortgage rate also had increased slightly. The FHA mortgage rate is 4.500 percent for an Illinois 30-year fixed rate FHA mortgage loan, which is 0.125 percent higher than last week’s mortgage rate. The FHA mortgage rate is 4.000 percent for an Illinois 15-year fixed rate FHA mortgage, which increased 0.250 percent over last week’s mortgage rate. An FHA 5/1 adjustable rate mortgage loan is currently at 3.000 percent, which is the same as last week’s mortgage rate. Despite recent increases in the Georgia FHA mortgage rate, an FHA mortgage loan is still a popular option amongst Illinois borrowers. FHA loans have more favorable loan terms than conforming mortgage rates. The tradeoff, however, is the higher closing costs associated with an FHA loan. Additional fees that the Federal Housing Administration charges to Illinois borrowers include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on.
Well-qualified borrowers in Illinois would have a very strong credit history with minimal missed and/or late payments. Credit score requirements of at least 580 (sometimes upwards of 620) and extremely reliable income sources, such as steady job with either stable salary or increasing, and enough financial reserves to cover a down payment of a minimum of 10 percent, which is usually verified by bank statements provided by Illinois borrowers. The Federal Housing Administration is historically known to have less stringent standards. However, due to recent circumstances, the Federal Housing Administration has tightened underwriting standards and to qualify for an FHA mortgage more closely resembles the standards of conforming mortgage loans.
Illinois jumbo mortgage rates have also remained steady compared to last week. A 30-year Illinois jumbo mortgage has a mortgage rate of 5.125 percent. A 15-year Illinois jumbo mortgage has a mortgage rate of 4.750 percent. For an Illinois 5/1 adjustable rate jumbo mortgage, the jumbo mortgage rate is 3.875 percent, which is unchanged as well. For a majority of the nation, the loan limit is $417,000. For higher cost areas, such as Washington D.C. and Los Angeles, the loan limit is $729,750. Except for one county in Illinois, which is Blaine County, the state of Illinois is limited to the $417,000 conforming loan limit. Blaine County is considered a higher cost area subject to the $729,750 loan limit. Although the average housing value is around $250,000, the average price in Blaine County is nearly $1.2 million. Jumbo mortgage generally have higher mortgage rates and tougher qualifying guidelines.
The mortgage market experienced an increase in mortgage rates last week primarily because of a decline in home construction throughout the state of Illinois. Homebuilders, as a result, have a negative outlook of the future of construction in the years to come. Also, mortgage backed securities and mortgage rates have an inverse relationship, which means that they move in opposite directions. So, when prices of mortgage backed securities fall, then Illinois mortgage rates will increase. The result is that as home construction continues to struggle and MBS prices continue to decrease, Illinois mortgage rates will not drop in the near future.
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FHA Mortgage 101
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference