Illinois Mortgage

The Search for an Illinois Mortgage

If you are looking to get a mortgage in the State of Illinois, you may just be in luck. There is a very good chance that you can stop your search early because the loan rates on many mortgages is outrageously good compared to the national average on certain loan types.

But before we get too far ahead or excited, let’s explain exactly what we mean. Illinois has one of the best ARM mortgage programs in the entire country. An ARM loan stands for Adjusted Rate Mortgage loan. An ARM loan allows you to take advantage of a favorable mortgage rate that may come about after you already signed papers and bought your home. This cuts down on the overall cost of your loan and is basically like money in the bank. If you are looking to get an Illinois mortgage and would like to look into ARM loans, you are in luck. Roughly 49% of all Illinois mortgages in 2004-05 were ARMs, compared to the national average of only 35%. Because of this fact, the average loan rate in Illinois is smaller compared to the national average as well- 5.59% versus 5.74%. While this does not seem like a substantial difference, anyone who has ever paid a mortgage over 20 or 30 years will tell you it matters a lot.

Fixed interest loans make up the bulk of the rest of the mortgages awarded in Illinois. In the Lincoln state, you can be assessed prepayment penalties if the fixed percent on the note is 8% or less. This is a big reason why ARMS are so popular as well- there is no such penalty assessed with them with any kind of prepayment. A seasoned lender will look at your overall credit and potential for future earnings (i.e. your current job potential) and assess which is best for your needs.

As if all of this was not reason enough to get an Illinois mortgage now, there is another very good reason to do so. In Illinois mortgage lenders are penalized by law for any unscrupulous practices. The High Risk Loan Act protects consumers against such incidents, helping to ensure that all mortgages given are fair to both parties.

With such protection on your side, it is easy to see why so many people would rather buy than rent in Illinois. Being in the Midwest and family-friendly, many people would love to call Illinois home. And with great mortgage rates and consumer protection, it is easy to see why so many people are moving in.