Current Mortgage Refinance Rates in Illinois (December 2024)

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Updated: January 10, 2025

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The current mortgage refinance rates in Illinois are 5.97% for a 15-year fixed mortgage and 6.50% for a 30-year fixed mortgage. The national average refinance rates are 5.38% for 15-year fixed mortgages and 6.45% for 30-year fixed mortgages.

We offer a comprehensive guide to understanding mortgage refinancing in Illinois that is tailored to your needs. The sections cover today's refinance rates, trends and practical tips on when and how to refinance, ensuring you have the knowledge to make informed decisions about your mortgage refinancing journey.

MoneyGeek used Zillow data for the rates on this page. Because mortgage rates shift daily, we use a snapshot to analyze rate information for Illinois. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless noted otherwise, featured rates are annual percentage rates (APRs).

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This data was last updated in December 2024.

Current Mortgage Refinance Rates in Illinois

The current 30-year refinance rate in Illinois is 6.50%. According to Experian, the average mortgage debt in Illinois was $194,636 as of September 2023. Refinancing your mortgage can be a smart way to manage this debt by potentially lowering your monthly payments and reducing the total interest paid over the life of the loan.

If your current mortgage rate is higher than 6.50%, refinancing could save you money. Below are the current refinance rates in Illinois to help you explore your options.

15-Year Fixed5.86%5.97%
30-Year Fixed6.43%6.50%

Mortgage Refinance Rate Trends in Illinois

In November, refinance rate trends in Illinois suggest an upward movement for both 15-year refinance rates and 30-year refinance rates. The 15-year refinance rates increased from 6.06% in October to 6.13% in November. For 30-year refinance rates, there was a rise from 6.55% to 6.96% in the same period. Staying informed on these trends can help you make the best decision for your financial situation.

Illinois Mortgage Refinance Rate Trends 2024

Data from 2024

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WHY DO INTEREST RATES GO UP?

Interest rates often rise due to factors like the US Federal Reserve's monetary policy and economic conditions. These elements can impact refinance rate trends in Illinois and affect your financial decisions. Understanding these factors helps you stay informed about potential changes in the market.

How to Refinance a Mortgage in Illinois

Refinancing your mortgage in Illinois can be a smart move to lower your monthly payments or secure a better interest rate. Understanding the steps involved will make the process smoother. Explore how you can take advantage of refinancing opportunities tailored to your needs.

  1. 1

    Check Your Credit Score

    Credit scores affect the rates you qualify for; a lower score may mean higher rates. Improve poor credit by paying bills on time and reducing debt. The average credit score in Illinois is 720.

  2. 2

    Determine When to Refinance a Mortgage

    Compare your current mortgage terms with market rates. The current Illinois rates are 5.35% for a 15-year loan and 6.01% for a 30-year loan. Refinance if rates are lower. Consider how long you'll stay in your home.

  3. 3

    Gather Necessary Documents

    Prepare documents like tax returns, pay stubs and bank statements. This ensures a smoother process when refinancing your current mortgage.

  4. 4

    Shop Around for Lenders

    Compare lenders for rates, fees and customer service. This will help you find the best deal when refinancing your mortgage.

  5. 5

    Understand the Costs Involved

    Be aware of costs like closing costs. According to the National Association of Realtors, the average closing costs in Illinois are $4,377.

  6. 6

    Apply for the Loan

    Submit your application with the required documents. Organizing your paperwork in advance can make the process smoother.

  7. 7

    Lock in Your Interest Rate

    Secure your rate to avoid fluctuations. A mortgage rate lock can protect you from rising rates.

  8. 8

    Close on Your New Loan

    Finalize the loan by signing closing documents. Reviewing all paperwork beforehand can help ensure a smooth closing.

  9. 9

    Start Making Payments on Your New Loan

    Begin payments as scheduled. Setting up automatic payments can help ensure you never miss a due date.

  10. 10

    Reevaluate When to Refinance a Mortgage

    Monitor market rates and your financial situation. Regularly assessing your mortgage can help identify future refinancing opportunities.

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HOW SOON CAN YOU REFINANCE A MORTGAGE?

In Illinois, how soon you can refinance a mortgage depends on the type of loan you have. Refinancing can occur immediately for conventional loans, although a cash-out refinance typically requires a six-month seasoning period. On the other hand, USDA loans usually need a 12-month waiting period before refinancing.

The refinance rate in October was 6.01%, which was lower than previous months. This can be a good example of when to refinance, as lower rates in Illinois might make it worthwhile. However, remember that refinancing comes with additional closing costs, which can take years to recover. So, although knowing how soon you can refinance a mortgage is helpful, it's often not beneficial unless there's a drastic interest rate reduction.

When to Refinance a Mortgage

Refinancing your mortgage in Illinois can decrease your monthly payments by lowering interest rates. Yet, high closing costs might eat into those savings. Knowing when to refinance a mortgage in Illinois ensures you maximize financial benefits. Review these scenarios where refinancing makes sense.

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    Lower Interest Rates

    Refinancing when interest rates are lower can reduce monthly payments and total interest paid. To find the best rates, consult with local banks and credit unions, which often offer competitive rates to attract new customers.

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    Increased Home Value

    Refinancing can be beneficial when your home's value rises, increasing your home equity. Enhancing curb appeal or renovating can boost value. With Illinois' average home value at $270,647, leveraging equity can lead to better loan terms.

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    Improved Credit Score

    A higher credit score can qualify you for better refinancing rates. Paying bills on time and reducing debt can improve your score, making refinancing more advantageous and potentially lowering your interest rate.

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    Shorter Loan Term

    Refinancing to a shorter loan term can save on interest and help pay off your mortgage faster. This strategy can lead to financial freedom sooner, though it may increase monthly payments.

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    Switch Loan Type

    Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage can stabilize monthly payments. This change protects against rate increases, providing predictable expenses and aiding long-term financial planning.

Mortgage Refinancing in Illinois: Is It Right for You?

Use MoneyGeek's free mortgage refinance calculator to help determine whether refinancing is beneficial for your situation.

Mortgage Refinance Calculator

Make sure refinancing your existing home loan will save you money.

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Today's Mortgage Refinance Rates in Illinois by Credit Score

Your credit score affects the rates you qualify for in Illinois. For example, the current average refinance rate in Illinois for a 30-year fixed-rate loan with a loan-to-value ratio of 80% or lower equates to 6.96% for credit scores between 680 and 740, compared to 6.50% for scores above 740. See the table below for more details.

Data filtered by:Results filtered by:
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Loan Type:15-year Fixed
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Credit Score Range:680 - 740
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Loan-to-Value Ratio:80% - 95%
5.93%6.30%

Mortgage Refinance Rates in Illinois by Loan Type

Loan type is another factor that can affect the rates you qualify for in Illinois. For example, the current average refinance rates in Illinois are 6.50% for a 30-year fixed-rate loan and 8.04% for a 30-year fixed-rate FHA loan. See the table below for average APRs for various loan types in Illinois.

Data filtered by:Results filtered by:
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Loan Type:10-Year Fixed
5.88%6.03%

FAQ: Today's Mortgage Refinance Rates in Illinois

In Illinois, homeowners have questions about how today's refinance rates might impact their mortgage plans. This section addresses common questions about refinancing in Illinois, providing clear insights and evidence-based facts to help them understand the financial landscape.

Should you refinance your mortgage?

How to get the best mortgage refinance rate?

What are the pros and cons of a mortgage refinance?

How much does it cost to refinance a mortgage?

What is the mortgage refinance rate in Chicago?

About Zachary Romeo, CBCA

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Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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