Illinois Mortgage Rates 2024
Find the best mortgage rates in Illinois including Chicago, Naperville, Aurora, Rockford, and Peoria. Competitive Midwest rates with strong local lender options.
Illinois Housing Market Overview
Average Home Price
Conforming Loan Limit
Market Trend
Illinois Market Advantages
Illinois offers competitive mortgage rates, strong job markets in Chicago and suburbs, excellent transportation infrastructure, diverse housing options from urban condos to suburban homes, and relatively affordable housing compared to coastal markets. The state features major corporate headquarters and a stable Midwest economy.
Current Illinois Mortgage Rates
| Loan Type | Interest Rate | APR | Points | Max Loan Amount |
|---|---|---|---|---|
| 30-Year Conventional | 6.75% | 6.88% | 0.25 | $766,550 |
| 15-Year Conventional | 6.125% | 6.25% | 0.125 | $766,550 |
| FHA 30-Year | 6.375% | 6.98% | 0.375 | $498,257 |
| VA 30-Year | 6.25% | 6.45% | 0 | $766,550 |
| Jumbo 30-Year | 6.875% | 7% | 0.25 | No limit |
Major Illinois Housing Markets
Chicago
Popular Areas:
Buyer Types:
Key Factors:
- Financial center
- Cultural hub
- Transit system
Naperville
Popular Areas:
Buyer Types:
Key Factors:
- Top-rated schools
- Family community
- Corporate headquarters
Aurora
Popular Areas:
Buyer Types:
Key Factors:
- Affordable housing
- Growing economy
- Transportation access
Rockford
Popular Areas:
Buyer Types:
Key Factors:
- Very affordable
- Manufacturing base
- Healthcare industry
Peoria
Popular Areas:
Buyer Types:
Key Factors:
- Manufacturing hub
- Caterpillar headquarters
- Healthcare sector
Springfield
Popular Areas:
Buyer Types:
Key Factors:
- State capital
- Government jobs
- Healthcare industry
Chicago Market Analysis
Market Strengths
- Strong job market in finance and technology
- Excellent public transportation system
- World-class cultural attractions and dining
- Diverse neighborhoods with character
- Major international airport hub
- Renowned architecture and waterfront access
Market Challenges
- High property taxes in Cook County
- Winter weather impact on market activity
- Some neighborhoods still recovering from recession
- Competition from suburban markets
- Regulatory complexity in city transactions
Investment Opportunities
- Up-and-coming neighborhoods with growth potential
- Transit-oriented development opportunities
- Historic building conversions and loft developments
- Waterfront and river proximity premium
- Corporate relocation and expansion benefits
Top Illinois Mortgage Lenders
First Midwest Bank
Specialties:
Key Strengths:
- Local decision making
- Community involvement
- Personalized service
Wintrust Mortgage
Specialties:
Key Strengths:
- Local market knowledge
- Competitive rates
- Full-service banking
Guaranteed Rate
Specialties:
Key Strengths:
- Technology platform
- Quick approvals
- Rate lock guarantees
Associated Bank
Specialties:
Key Strengths:
- Midwest knowledge
- Agricultural expertise
- Community banking
Busey Bank
Specialties:
Key Strengths:
- Local presence
- Agricultural knowledge
- Community commitment
Illinois Homebuyer Assistance Programs
Illinois Housing Development Authority (IHDA)
State ProgramProgram Benefits
- 1stHomeIllinois loans
- Down payment assistance up to $7,500
- Closing cost assistance
- SmartMove program
Eligibility Requirements
- First-time buyers
- Income limits vary by county
- Primary residence requirement
Chicago Homebuyer Assistance Program
City ProgramProgram Benefits
- Down payment assistance up to $12,500
- Closing cost assistance
- TIF funding
Eligibility Requirements
- Chicago residents
- Income limits apply
- Must complete homebuyer education
Cook County Land Bank
County ProgramProgram Benefits
- Discounted properties
- Rehab financing
- Neighborhood stabilization
Eligibility Requirements
- Cook County residents
- Property-specific requirements
- Rehab commitments
USDA Rural Development Illinois
Federal ProgramProgram Benefits
- 0% down payment
- Below-market rates
- Rural area focus
Eligibility Requirements
- Rural Illinois areas
- Income limits
- Primary residence only
Illinois Veterans Cash Grant
Veterans ProgramProgram Benefits
- $5,000 cash grant
- No repayment required
- Property tax exemptions
Eligibility Requirements
- Illinois veterans
- First-time homebuyers
- Eligible counties
Illinois Mortgage FAQ
What are current mortgage rates in Illinois?
Current 30-year mortgage rates in Illinois average around 6.75% for conventional loans, 6.375% for FHA loans, and 6.25% for VA loans as of 2024-12-30. Illinois rates are competitive with national averages.
Are Illinois mortgage rates competitive with national averages?
Yes, Illinois mortgage rates are typically competitive with or slightly below national averages due to strong competition among lenders in the Chicago area, established banking infrastructure, and competitive Midwest market conditions.
What assistance programs are available for Illinois homebuyers?
Illinois offers IHDA 1stHomeIllinois loans with down payment assistance up to $7,500, Chicago homebuyer assistance up to $12,500, Cook County Land Bank programs, USDA rural loans, and Illinois Veterans Cash Grant up to $5,000.
How do Chicago property taxes affect mortgage payments?
Cook County has some of the highest property taxes in the nation, which significantly impacts total monthly housing costs. Factor in 2-3% of home value annually in property taxes when calculating affordability. This makes the total cost of ownership higher than just the mortgage payment.
What makes Illinois attractive for homebuyers?
Illinois offers competitive mortgage rates, strong job markets (especially Chicago finance and tech), excellent transportation infrastructure, diverse housing options, relatively affordable housing compared to coastal markets, and major corporate headquarters providing job stability.
Should I buy in Chicago or the suburbs?
Chicago offers urban amenities, transit access, and cultural attractions but higher property taxes and prices. Suburbs like Naperville offer excellent schools, family communities, and more space but longer commutes. Consider your lifestyle, commute tolerance, and budget when deciding.
Calculate Your Illinois Mortgage Payment
Use our mortgage calculator with current Illinois rates to estimate your monthly payment including property taxes.