Illinois Mortgage and Refinance Rates

Current mortgage rates in Illinois

As of Monday, September 15, 2025, current interest rates in Illinois are 6.32% for a 30-year fixed mortgage and 5.50% for a 15-year fixed mortgage. Before you buy, know your options and compare as many mortgage offers as you can to find the best deal.

While mortgage rates are difficult to predict, many housing economists expect them to remain in the mid-6 percent range for 2025 nationally — and in Illinois. While rates started the year closer to 7 percent, economic uncertainty has driven them down a bit in recent months. Still, rates are unlikely to return to recent, historical lows anytime soon. 

Refinance rates in Illinois

Refinance rates, like mortgage rates, have fluctuated in the past year — but in general, they remain far above the historic lows of the pandemic. Still, if you bought a home in the last year or two, when rates were closer to 8 percent, now may be a good time to refinance. According to ATTOM Data Solutions, more than 8,000 Illinois homeowners refinanced in April 2025, a year-over-year increase of more than 27 percent. 

Many homes in Illinois have also experienced rapid appreciation over the past few years. If you have tappable equity, you could use a cash-out mortgage refinance to fund large expenses more cheaply than with other forms of borrowing. 

National mortgage rates by loan type

Illinois housing market statistics and trends

As of April 2025, Illinois home prices are up year-over-year, but still well below the national median. And with an increasing number of homes for sale — and homes spending longer, in general, on the market — the state is a relatively welcoming place for first-time buyers. 

• Median home sales price, April 2025: $295,000
• Median home value, April 2025: $291,486
• Median down payment, April 2025: $32,500
• Median days on market, May 2025: 43
• Percentage of homes sold above list price, May 2025: 44.2%
• Percentage of homes with price drops, May 2025: 18.6%
• Homeownership rate, Q1 2025: 65.6%

Sources: ATTOM, Redfin, U.S. Census Bureau

Mortgage options in Illinois

If you’re looking to get a mortgage in Illinois, there are several options depending on your financial situation:

• Illinois conventional mortgages: To be eligible for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 43 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) as well.
• Illinois FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a credit score of at least 580, you could qualify for an FHA loan with a down payment of as little as 3.5 percent.
• Illinois VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which starts at 1.25 percent of the loan amount for home purchases.

First-time homebuyer programs in Illinois

If you’d like to become a homeowner in Illinois, the state can help make it easier and more affordable. The Illinois Housing Development Authority (IHDA) offers several first-time homebuyer assistance programs, including fixed-interest mortgages and down payment assistance loans through its Access Mortgage initiative. These include:

• IHDA Access Forgivable Mortgage: The IHDA Access Forgivable Mortgage program offers fixed-rate, 30-year mortgages via participating lenders. Through this program, you can get 4 percent of the home purchase price, up to $6,000, as a closing cost and down payment assistance loan. You don’t need to pay this loan back as long as you live in the home for at least 10 years. To qualify, you'll need a minimum 640 credit score and to meet income and purchase price limits that vary by county.
• IHDA Access Deferred Mortgage: The IHDA Access Deferred Mortgage program offers a 30-year, fixed-rate mortgage through an FHA, VA, USDA or HFA Preferred (conventional) loan. You can also take out a loan worth 5 percent of the home’s purchase price, up to $7,500, to help you pay for closing costs and the down payment. The loan is interest free, and you don’t need to pay it back until the end of your loan term, or when you sell your home or refinance your mortgage. To qualify, you need a credit score of at least 640. The same income and purchase price limits as with the IHDA Access Forgivable Mortgage apply.
• IHDA Access Repayable Mortgage: The IHDA Access Repayable Mortgage program offers a 30-year, fixed-rate mortgage. Your loan options include an FHA, VA, USDA or HFA Preferred (conventional) loan. You can also get a down payment and closing cost assistance loan worth 10 percent of the purchase price, up to $10,000, repaid over 10 years at zero percent interest.  To qualify, you’ll need to meet the same program requirements as the Deferred and Forgivable programs.

Be sure to browse assistance programs local to where you’re looking to live, too. The Chicago Housing Authority, for example, offers up to $20,000 of grant assistance to qualifying current residents who want to become homeowners and up to $10,000 of assistance to those moving to Chicago. 

How to find the best mortgage rate in Illinois for you

Additional Illinois mortgage resources

• Illinois loan limits by county: Learn the conforming loan limit for your city or town.
• Illinois mortgage lenders: Compare rates and terms from lenders all around the state.
• How to buy a house in Illinois: Learn the ins and outs of homeownership in the Prairie State.
• Illinois housing market: Discover everything you need to know about the local real estate scene.
• Best homeowners insurance companies in Illinois: Compare policies from a variety of providers.