Illinois Mortgage Rates
Compare Illinois mortgage rates and choose the best option for your needs.
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Mortgage in Illinois: Top Lenders in 2024
Are you considering buying a home in Illinois? Using a mortgage loan is a convenient option regardless of the type of property you're looking for, be it a residential estate or an apartment. However, it's important to note that the terms and conditions of home loans can vary significantly among different mortgage lenders. To get an estimate of your future expenses, you can use our mortgage calculator. In this guide, we will review some of the top-rated lenders in Illinois and help you determine which ones are worth considering.
IL Mortgage Lenders Comparison
All the lenders we have reviewed are reputable companies with reasonable rates and a strong history of performance. To provide you with the most comprehensive information, we will compare them based on several key criteria, including the APR (Annual Percentage Rate), the minimum down payment required, and the minimum requirements for eligibility. By evaluating these factors, you can make a well-informed decision about which lender best suits your needs.
Morty, Inc. Mortgage
Not a lender by itself, but a mortgage broker, Morty, Inc. appeared in 2016. It is physically headquartered in New York City, but has close-to-nationwide coverage, with the exception of four states (Hawaii, Massachusetts, Missouri and Nevada).
Morty provides a range of mortgage options, including fixed-rate and variable-rate conventional and jumbo mortgages, as well as FHA-insured loans. However, it exclusively offers refinancing loans originally obtained through Morty.
For a 30-year fixed-rate mortgage, the APR is 6.667%. The rates for 20-year and 10-year loans are slightly lower at 6.425% and 5.452%, respectively. To be eligible, applicants must have a minimum credit score of 600 and a debt-to-income (DTI) ratio equal to or less than 45%. The required down payment varies based on the size of the property.
| Pros: | Cons: |
|---|---|
| Wide Coverage. Morty, Inc. has close-to-nationwide coverage, including Illinois, making it accessible to residents in the state. | Limited Physical Presence. Although Morty, Inc. has nationwide coverage, its physical headquarters are located in New York City. This means that face-to-face interactions may be limited, and some borrowers may prefer a local presence for convenience or personalized assistance. |
| Mortgage Options. Morty, Inc. offers a variety of mortgage options, including fixed-rate and variable-rate conventional and jumbo mortgages, as well as FHA-insured loans, providing borrowers with flexibility. | Coverage Restrictions. Morty, Inc. does not operate in four states, including Hawaii, Massachusetts, Missouri, and Nevada. If you reside in one of these states, you won't be able to utilize their services. |
| Refinancing Option. If you have an existing loan obtained through Morty, Inc., you have the opportunity to refinance it through the broker. | Credit Score Requirement. Morty, Inc. requires a minimum credit score of 600 from applicants. If your credit score is below this threshold, you may not qualify for their mortgage options. |
| Competitive Rates. Morty, Inc. offers competitive rates for its mortgage products, allowing you to potentially secure a favorable interest rate on your loan. | DTI Ratio Limitation. Morty, Inc. also imposes a maximum debt-to-income (DTI) ratio of 45% for eligibility. If your DTI ratio exceeds this limit, you may need to explore alternative mortgage brokers or lenders. |
Gateway Capital Mortgage
Gateway Capital Mortgage is a reputable mortgage lender operating in multiple states. It offers competitive interest rates, such as 4.902% for a 15-year mortgage, 5.578% for a 20-year mortgage, and 5.594% for a 30-year mortgage. However, it's important to note that the specific assumptions and conditions behind these rates are not explicitly provided on their website.
Prospective borrowers should meet certain qualification requirements, including a minimum credit score of 620 and a minimum down payment of 5%. These criteria ensure that applicants have a reasonable credit history and are financially capable of meeting the down payment obligation.
Gateway Capital Mortgage has been in operation since 2005 and holds an impressive A+ rating from the Better Business Bureau (BBB). This rating indicates a high level of customer satisfaction and reliability in their services.
It's worth noting that while the rates offered by Gateway Capital Mortgage may appear attractive, it's essential for borrowers to consider other factors such as additional fees, closing costs, and the overall suitability of the loan terms to their specific financial situation.
As with any mortgage lender, it is advisable to conduct thorough research, compare multiple lenders, and carefully evaluate all the terms and conditions before making a final decision. This ensures that borrowers can secure the most suitable mortgage option for their needs.
| Pros: | Cons: |
|---|---|
| Wide Range of Loan Options. Gateway Capital Mortgage offers a variety of loan programs, including conventional mortgages, FHA loans, VA loans, and jumbo loans. This allows borrowers to choose a loan that best suits their needs and financial situation. | Limited Geographical Coverage. It's important to note that Gateway Capital Mortgage may have limited geographical coverage. Before considering it as a lender, ensure that it operates in your specific area within Illinois to avoid any inconvenience. |
| Competitive Interest Rates. The company strives to offer competitive interest rates, which can potentially save borrowers money over the life of their loan. Lower interest rates can result in lower monthly mortgage payments and long-term savings. | Availability of Other Lenders. While Gateway Capital Mortgage may offer competitive rates and services, it's recommended to explore multiple lenders and compare their terms and conditions. This allows borrowers to find the best mortgage option for their unique situation and potentially secure more favorable terms. |
| Streamlined Application Process. Gateway Capital Mortgage aims to provide a seamless and efficient mortgage application process. It may offer online application options and dedicated loan officers to assist borrowers throughout the process, making it more convenient and accessible. | Qualification Criteria. Like any lender, Gateway Capital Mortgage has qualification criteria that borrowers must meet. This may include credit score requirements, debt-to-income ratios, and other factors. It's essential to review and ensure you meet these criteria before applying for a mortgage with them. |
| Personalized Service. The company values personalized customer service, and their loan officers work closely with borrowers to understand their specific needs and financial goals. This personalized approach can help borrowers find the right mortgage solution tailored to their circumstances. | Additional Fees and Costs. As with any mortgage, borrowers should be aware of potential additional fees and costs associated with the loan process, such as origination fees, closing costs, and mortgage insurance. It's important to thoroughly review and understand all the costs involved to make an informed decision. |
AmeriSave
AmeriSave a reputable nationwide lender founded in 2002, has built a strong presence in the mortgage industry. While the company originated in Georgia, it offers enticing offers across various states, including Georgia. Its commitment to excellence is reflected in its outstanding ratings from respected organizations like the Better Business Bureau (BBB) with an A+ rating and Trustpilot with a score of 4.3 out of 5.
The advertised rate of 4.899% is highly attractive but typically reserved for borrowers with a FICO credit score of 740 or higher and a 20% down payment. It's important to note that your actual interest rate may differ from the advertised rate based on your circumstances. To qualify for a conventional loan with AmeriSave, a credit score of 620 is generally required, while government-insured plans may be available for borrowers with a credit score of 600 or higher.
When considering a mortgage with AmeriSave or any other lender, it's crucial to review the complete terms and conditions, including any additional fees, closing costs, and loan features. Comparing rates and offerings from multiple lenders can help you find the most suitable mortgage option for your specific financial situation and goals.
Ultimately, AmeriSave's established reputation, high ratings, and competitive rates make it worth considering for prospective homebuyers in Georgia and beyond.
| Pros: | Cons: |
|---|---|
| Nationwide Lender. AmeriSave is a well-established nationwide lender, which means they have experience and expertise in the mortgage industry. | Advertised Rates vs. Actual Rates. The rates advertised by AmeriSave may not be the exact rates you receive. Your actual rate will depend on factors such as your credit score, down payment, and other financial considerations. |
| Excellent Ratings. AmeriSave has received high ratings from reputable sources such as the Better Business Bureau (BBB) with an A+ rating and Trustpilot with a score of 4.3 out of 5. This indicates their commitment to customer satisfaction. | Credit Score Requirements. While AmeriSave offers loans for borrowers with credit scores as low as 620 for conventional loans and 600 for government-insured plans, higher credit scores generally result in more favorable rates and terms. |
| Competitive Rates. AmeriSave advertises attractive rates, which can be beneficial for borrowers who qualify with higher credit scores and down payments. | Individual Loan Terms. It's important to review the specific terms and conditions of the mortgage offered by AmeriSave, including any additional fees, closing costs, and loan features. Understanding the complete loan package will help you make an informed decision. |
| Range of Mortgage Options. AmeriSave offers a variety of mortgage options, including conventional loans and government-insured plans. This allows borrowers to choose the loan program that best suits their needs. |
Average Mortgage Rate in Illinois from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Illinois.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Illinois
| Criteria | Amount, $ |
|---|---|
| The median home value in Illinois | $252,300 |
| The income required to buy the median priced home in Illinois | $41,338 |
| The monthly mortgage payment required to buy the median priced home in Illinois | $957 |
| The median household income for Illinois | $77,228 |
Things to Consider When Choosing a Mortgage Lender
Obtaining a mortgage loan is a significant commitment that spans 15 to 30 years, requiring careful consideration before agreeing with any lender. There are several crucial factors to keep in mind when selecting a lending institution.
Type of Lender
There are essentially two main options for getting a mortgage loan: traditional banks and online mortgage lenders. Banks often offer competitive interest rates, but they typically have stringent credit requirements. The approval process can be lengthier, and meeting their eligibility criteria can be challenging. On the other hand, online lenders operate with greater speed, and their criteria for homebuyers are generally more flexible and lenient.
APR and Fees
Like any loan, a mortgage comes with various costs beyond the interest rate itself. These additional expenses include fees such as origination fees, mortgage insurance fees, closing costs, and more. As of the current writing, the average mortgage rate in Illinois for a fixed-rate 30-year loan is 6.58%. It's important to consider these costs and factor them into your overall budget when obtaining a mortgage.
Terms and Conditions
In this regard, it is essential to take into account the minimum required down payment, which can range from 0% to 20% depending on the type of loan and your current circumstances, such as military status, employment status, or self-employment. Another crucial factor to consider is the loan term, which determines the total length of the mortgage. The most common options for loan terms are 15 and 30 years. These factors play a significant role in determining the overall affordability and financial commitment associated with the mortgage.
What Mortgage Lender is the Number One in Illinois?
The options for reliable mortgage lenders in Illinois are plentiful, making it difficult to provide a definitive answer. The choice ultimately depends on individual preferences and needs. One notable industry leader is Rocket Mortgage, which achieved a loan volume of $11.5 billion in 2021. To make an informed decision, it is recommended to refer to a list of recommended lenders that can provide comprehensive information and guidance for selecting the right mortgage lender in Illinois.
First-Time Homebuyer Programs in Illinois
First-time homebuyers in Illinois face various challenges, but fortunately, there are government programs available to improve mortgage affordability.
- Federal Housing Administration loan program. This program provides insurance from the federal government to buyers. The insurance fee is included in the overall loan cost. In return, homebuyers enjoy advantages such as low-interest rates and lenient credit requirements. With this program, individuals can qualify with a FICO score as low as 500 and a debt-to-income ratio of just 50%.
- USDA loan program. Geared towards those residing in rural areas, this program offers mortgage loans with zero down payment. However, applicants must ensure their annual income does not exceed 115% of the average income in their region.
- VA loan programs. Insured by the Department of Veterans Affairs, these mortgage options are exclusively available to former military personnel and their spouses.
By exploring these programs, first-time homebuyers in Illinois can access valuable opportunities and benefits to make their homeownership dreams more attainable.
Pre-Approval: What Does It Mean?
Preliminary approval serves as a confirmation of a prospective homebuyer's credibility and assures home sellers that lenders are prepared to approve a mortgage loan for the buyer. To obtain pre-approval, individuals must provide documentary evidence of their ability to repay the loan. This typically includes earning statements, account statements, a W2 form, or alternative proof of income for a minimum of two years. In addition, completing the Uniform Residential Loan Application form is necessary to initiate the pre-approval process.