Illinois Mortgage Rates Help Drive Real Estate Recovery - Home Loan Experts with Great Mortgage Rates Serving Colorado, Florida, Illinois, Indiana, Michigan, Minnesota, Tennessee and Wisconsin

Thursday, May 9, 2013

Illinois Mortgage Rates Help Drive Real Estate Recovery

Chicago area home prices increased 5.1% from a year earlier, thanks in part to record low Illinois mortgage rates. Interest rates are fueling a robust recovery throughout all major metropolitan real estate markets in the United States, and the greater Chicago area is no exception.

With recent economic reports showing signs of recovery, Illinois mortgage rates are starting to trend upward. Keep in mind that every 1% increase in interest rates equals about 10% less in borrowing power – so, the payment for a $300,000 loan at 3.5% is the same (or lower) as the payment on a $270,000 loan at 4.5%. This fact, coupled with record low rates, is driving home affordability to all-time highs.

Although home prices have increased 5%, it’s important to note that Chicago area prices are still 34% off of their peak set in 2006. This seems to suggest that owning real estate is still a bargain, especially when compared to renting. It appears that the Chicago area real estate market may be on solid footing for the next several years, assuming mortgage rates do not dramatically increase.

United Home Loans is licensed to provide Illinois mortgage loans for the purchase or refinance of a primary, secondary or investment home. Maximum conventional mortgage limits range from $417,000 for a single family home and up to $801,950 for a four unit property.

United Home Loans provides Illinois mortgage loans in addition to mortgages in Indiana, Michigan, Minnesota and Wisconsin. Check out our rates below and call us with any mortgage related questions at (708) 531-8388.

Illinois Mortgage Rates
IL 30 Year Fixed mortgage as of May 9, 2013 3.375%/3.394 APR
IL 15 Year Fixed mortgage as of May 9, 2013 2.625%/2.694 APR

Please click this link for APR assumptions and more IL mortgage rates

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