Illinois Mortgage Rates Hit New Lows!
This definitely sounds like a broken record but…Illinois Mortgage rates have hit new lows. Almost all categories of Illinois mortgage loan programs and interest rates are either at record lows or have reached new record lows. If you have refinanced your loan in the last six months, you should evaluate the current interest rate market to determine if it makes sense to refinance again.
There are several factors to evaluate to help you determine if it makes sense to refinance. Please review these questions with your mortgage lender prior to starting your Illinois refinance:
How long will you stay in the property?
How much will you have to pay in closing costs?
How much principal have you paid off on your current loan?
How much will you pay off on your new Illinois mortgage loan within the next 5 years? How much within the next 10 years?
Should you evaluate a shorter term fixed rate loan such as a 10, 15 or 20 year fixed?
Do you have any major expenses occurring in the next three to five years such as college education, weddings or a second home purchase?
Do you expect any drastic changes to your household income such as going from two wage earners to one or vice versa?
How quickly would you like to pay off your mortgage?
How would a refinance impact your current investment strategy?
Do you have any higher interest rate debt such as credit cards or student loans that could possibly be consolidated into your new mortgage?
The answer to these questions will help you and your mortgage lenders select the Illinois mortgage program that is right for you. Some borrowers continue to refinance to mortgage loans with new 30 year terms. They may save money monthly but are constantly “rewinding the clock” on their 30 year term. Others may refinance to a 15 year fixed but then realize the payments are too high if there is an increase in living expenses or a decrease in income.
So please take the time to think through your financial goals when refinancing your mortgage – it can save you an enormous amount of interest in the long run – from the tens of thousands to the hundreds of thousands.
Below is a quick snap shot of current Illinois Mortgage Rates. Make sure you read the small print below as rates are dependent upon credit score, equity position and several other factors.
Illinois Mortgage Rates As of February 21, 2012
Mortgage Program Rate A.P.R. Points
30 Year Fixed 3.625% 3.746% 1.00%
20 Year Fixed 3.500% 3.699% 1.00%
15 Year Fixed 2.875% 3.089% 1.00%
5/1 ARM 2.375% 2.948% 1.00%
*APR based on a loan to value of 75%, a loan amount of $200,000 for Conventional loans and $600,000 for Jumbo loans, SFD primary home inIL, WI, MI, MNand credit scores of 740 or higher. All applicants are subject to change to underwriter approval. Rates are effective as of February 27, 2012 and are subject to change at anytime.