Chicago Mortgage Rates
Mortgage rates for Chicago loans have fallen in recent weeks providing another opportunity for home buyers and refinance candidates to lock into a low fixed rate mortgage or an adjustable rate loan. The lousy employment report and recent stock market sell off have contributed to the recent improvement in Chicago mortgage rates.
Keep in mind that every 1% increase in mortgage interest rates decreases your borrowing power by approximately 10%. That means you borrow $400,000 at 4% for about the same payment as $360,000 at 5%. Combine that with home values that are still below their peak in the Chicago area, and today remains a great time to buy a new home.
Chicago ARM Rates are Low
While many people look at adjustable rate mortgages or ARMs as risky loan programs that helped cause the financial crisis, many ARM loan programs provide a low rate for a fixed period of time. A 7/1 ARM, for example, has a low fixed rate for seven years. This is the perfect mortgage loan for someone that does not plan on keeping their home for longer than seven years. These loans have been approximately .75% below a 30 year fixed providing Chicago home purchasers with a sizeable discount in rate and large amount of savings on a monthly basis.
Please reach out to the professionals at United Home Loans for a specific rate and payment quote for your mortgage needs. Call us at (708) 531-8388 today!