Current mortgage rates in Chicago differ between lenders as they consider their rates depending on the borrower’s capacity to pay. For a 30-year fixed loan, rates average at 6.24%, and for a 15-year fixed loan, the current rate is 5.47%. When it comes to a 5-year ARM, it is at 5.46%.
It is not a wonder why many Americans are looking for opportunities to live in Chicago apart from the breathtaking skyline. First-time home buyer assistance programs in Illinois can help borrowers by offering grants, loans, down payment assistance, and tax credits. These assistance programs are subject to qualification requirements and availability.
Current mortgage rates in Chicago are at a historic low, so now is an excellent time to consider investing in real estate in the area.
Chicago loan programs
- A conventional mortgage is a program for borrowers with a credit score of at least 620. If your debt-to-income ratio falls below the 45% range, there is a big possibility that you will qualify. When it comes to a conventional loan mortgage, you will need to make a more significant down payment and pay for private mortgage insurance (PMI) if the downpayment is less than 20% of the purchase price.
- A VA loan is open to qualified veterans, active duty service members, and spouses. As an eligible borrower, you will pay a VA funding fee of about 1.4%-3.6% of the home’s purchase price. As the Department of Veterans Affairs backs this, they don’t require a down payment or mortgage insurance.
- FHA loans will be your go-to if you don’t meet the conventional mortgage requirements. This type of loan program is insured by the Federal Housing Administration (FHA), so if your credit score is 580 or higher, you put down a 3.5% down payment and 10% for a 500-597 range.
Contact us to get the most current mortgage rates in Chicago and for the latest updates on the housing market in the area.
