Current 30-year fixed mortgage refinance rates are averaging: 7.31%
The current average rate for a 15-year fixed mortgage refinance is: 6.76%
See whether refinancing makes sense for you using our mortgage refinance calculator.The current mortgage rates forecast is for rates to remain fairly steady in the short term and, over the course of the year, inch downward. Our market expert, Jacob Channel, is cautiously optimistic about 2024 and predicts 30-year mortgage rates will end the year closer to 6% than 7%. However, he also warns that affordability won’t jump up substantially any time soon. For that, we’ll need to see lower rates as well as an influx of housing stock, since part of the current affordability crisis is that there just aren’t enough homes for sale.
Several factors determining mortgage rates are out of your control, but there are a few steps you can take to get the best mortgage rate:
When you’ve landed on a loan offer that works for you, it’s time to request a mortgage rate lock. “Locking in” your rate means that the rate you see in your loan offer won’t go up, even if national average interest rates do. This way, you’re guaranteed the rate you agreed to as long as you close on the loan within the specified amount of time.
The Illinois Housing Development Authority (IHDA) has several down payment assistance programs, available to both first-time homebuyers and repeat buyers.
If you’re looking for the most assistance you can get from an IHDA program, this is it. You can access up to $10,000 with a repayable second mortgage, and use the funds toward a down payment or closing costs. You’ll have to make monthly payments on those funds for 10 years, but you won’t pay any interest.
Borrowers must:
Use the program in conjunction with an IHDA mortgage
Have a 640 minimum credit score
Have a maximum 50% DTI ratio
Earn within the program’s income limits
Purchase a home within the program’s price limits
Contribute at least 1% of the purchase price or $1,000 (whichever is larger) from their own funds
This program offers 4% of your first mortgage amount in down payment assistance, up to $6,000. If you’d rather have a “silent” second mortgage, this program may work better for you. “Silent” means that you won’t have to make any payments on the down payment assistance funds along the way. Instead, the money will be forgiven over time and, as long as you remain in the home for 10 years, you won’t have to repay it.
Borrowers must:
Use the program in conjunction with an IHDA mortgage
Have a 640 minimum credit score
Have a maximum 50% DTI ratio
Earn within the program’s income limits
Purchase a home within the program’s price limits
Contribute at least 1% of the purchase price or $1,000 (whichever is larger) from their own funds
Live in the home for 10 years to avoid payment
If you’re looking for down payment assistance but know you may not be able to stay in the home for 10 years, this program could be your best bet. It offers you 5% of your mortgage amount (up to $7,500) as a silent second mortgage, so you won’t have to pay interest or juggle two different mortgage payments. However, the funds do have to be repaid when you pay off the mortgage, sell the home or refinance. If none of these events happen, you’ll have to repay the loan after 30 years.
Borrowers must:
Use the program in conjunction with an IHDA mortgage
Have a 640 minimum credit score
Have a maximum 50% DTI ratio
Earn within the program’s income limits
Purchase a home within the program’s price limits
Contribute at least 1% of the purchase price or $1,000 (whichever is larger) from their own funds
→ Illinois conventional loans. You’re likely familiar with conventional loans, the industry standard for borrowers who can meet the minimum requirements set by Fannie Mae and Freddie Mac.
→ Illinois FHA loans. FHA loan requirements are a more accessible option for borrowers with credit scores that won’t allow them to qualify for a conventional loan. Those with credit scores as low as 500 can get into an FHA loan, as long as they make a 10% down payment. For those with a 580 score (or above), you’ll also have the option to put down as little as 3.5%.
→ Illinois VA loans. Military borrowers can access several great loan options through the VA. VA loan requirements are designed to be reachable for military service members and come with some big advantages. For instance, you can purchase or refinance without making a down payment or paying for mortgage insurance.
→ Illinois streamline refinances require less paperwork and processing time than other refinance types. The “streamline refinance” name encompasses both FHA streamline refinance loans and VA interest rate reduction refinance loans (IRRRLs). Just know that they come with one big limitation: you can only refinance from an FHA loan into an FHA loan, or from a VA loan into a VA loan.
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