Welcome to Illinois Mortgage Rates and News week in review for the week ending October 23rd, 2009, my take on the week’s financial news and how it affected Chicago Illinois mortgage rates.

The stock market is still running on better than expected earnings, but the mood is starting to change. About 3/4s of the major companies reporting their earnings last week came in better than expected. But almost all of this increase was a result of cost cutting and layoffs, not increases in sales. The rally is starting to lose steam, and their may be a correction in the future. Mortgage bond prices were mixed for the week, often getting worse in the morning and recovering by the end of the day. Over the course of the week there was a lot of intra-day volatility, but rates are still in a range, and stayed about the same from the beginning to the end of the week.

Home sales were up sharply this month, up by 9.4% from the prior month, as a result of the last minute surge in first time home buyers trying to get in before the November 30^th deadline. Home prices are still down sharply from where they were a year ago. The biggest worry for many is inflation, but the release of the PPI (Producer Price Index) this week showed that this is still not a problem. The PPI actually decreased by .6% for the month, showing that there are no pressures being built up for prices to increase. Combined with the high unemployment rate, this gives the Fed cover to keep interest rates low for a long time.

There is still a big push from industry groups to extend the first time home buyers tax credit, but some news from Washington made this a little more unlikely. The IRS reported they are investigating 100,000 cases of potential fraud with the tax credit. There are always people looking for angles to exploit, and if some one is giving away money you can be sure that some one will figure out a way to scam some of that money for themselves. But when the mood in congress has shifted from the benefits that the tax credit offers to how much this is costing, these cases of fraud will be another reason to say no to extending the credit. Many of the buyers who took advantage of the credit would have bought either way, so the estimate of the cost per new home buyer is now somewhere around $40,000 per new buyer (I’ve seen some estimates which are much higher). My guess is that the first time tax credit will go away, but if the market gets much worse (like what happened with the Cash for Clunkers program) there will be a renewed push to start it again by the Spring. If you are looking to buy a new home, the first step is a Chicago mortgage pre-approval, give me a call and we can get the process started.

Here are the current Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

30 year fixed rate              5.125%         5.247% APR

15 Year fixed Rate             4.50%        4.568% APR

5-1 A.R.M.                         3.875%        4.067% APR

For Jumbo loans over $417,000

***************** SPECIAL JUMBO PRICING ****************

30 Year Fixed Rate*          5.875%        6.093%*

This 30 year fixed Jumbo is special pricing based on a purchase up to 75% LTV or a refinance to 70%, 680 or better Fico scores. Other restrictions may apply.

**************************************************************

7-1 A.R.M.                        4.875%         5.095% APR

(Another option is to break your Jumbo loan into 2 parts – conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

With 1 point origination fee – 45 day lock

30 year fixed rate              5.00%       5.478% APR

With no origination fee – 45 day lock

30 year fixed rate              5.25%      5.473% APR

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances

Call for quotes on FHA 203K Rehab Loans

VA Veterans Administration 0 Down Loans

With 1 point origination fee – 45 day lock

30 Year Fixed Rate            5.25%       5.437%

Call for information on no-cost VA Streamlined Refinances

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company

We Lend in All 50 States

Free Mortgage Quote:

Get Best Advice from illinois mortgage broker

Contact Your illinois mortgage company Today

Find the Maximum FHA Loan Amount in Your Area Here illinois FHA loans

Are you Looking for first time home buyers loan ? Find Free Tips and Advice here

How to update yourself with Current chicago mortgage rates ? The Answer is here.

Looking for mortgage chicago il

Chicago FHA loans

We Offers illinois home mortgage Loans with best mortgage rates