Illinois mortgage rates

How Much of A Home Can I Afford?

                    One of the first steps in purchasing a home is considering how much of a home you can afford to buy. Before you start searching for homes on the Internet or with the help of a realtor, you should have a good idea of what kind of mortgage you can qualify for, and what size payment you can comfortably afford. To help figure this out, you can start by talking to a qualified loan officer. Questions to Consider To start the process, we often ask about your goals, and try to assess your financial picture to help determine what you can afford. For example, we may discuss your work history, your employment income, any debt you may have, and your credit score. This conversation will help determine what you may qualify for, and the best options for your unique situation….

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Proving Income Stability When Applying for a Mortgage

When people are trying to figure out how much they can afford, Income Stability this one area where it’s easy to get bad information. First we need to determine how much you make each month. We use gross income, not your take home pay.  If you’re in a job where you get the same amount of pay each month, it’s pretty simple. But if you have a job where your income fluctuates from month to month, like commissioned sales or construction, or if part of your pay comes from bonuses, it gets more complicated. The same thing applies if you are self-employed or have your own business. In these cases we need to go back and look at the history of your income over the last two years and make sure that this income is likely to continue. In any event, lenders look more favorably on someone who has been…

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Can You Believe the Mortgage Rates You see in the Paper (or on the Internet)? Why Advertised Mortgage Rates are “Never Right” – Factors Affecting Mortgage Pricing – Part 2

(This is an update of a previous blog post) The one question I am asked more frequently than any other is, What is your rate? This is a great question because you obviously want the lowest rate, but it’s a question that is impossible to answer. First of all, the rate will depend on what type of loan you are getting, whether you want to pay extra money in points and fees to get the best rate (which is what happens with the low rates you see in ads). Even if you were comparing apples to apples and making sure the loans are priced the same way, you can’t compare mortgage rates without without taking into account all the factors in your personal situation which go into pricing a loan. When  a lender takes on a new mortgage their goal is to minimize their risk and make sure that they…

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Illinois Mortgage Rates Weekly Update

Welcome to Illinois Mortgage Rates and News week in review for the week ending September 5th, my take on the week’s financial news and how it affected Illinois mortgage rates. It’s official. The biggest threat of inflation has passed and the weakening economy is our worst fear going forward (for this week anyways). Mortgage bonds are in full rally mode now, which means Chicago mortgage rates are moving down. Rates are at the best level in months, and this rally may have some more room to go. Over the last 3 months all the talk from the financial pundits (and many Fed Chairmen) has been about how inflation is set to ravage our economy. But now oil prices are down to $105 per barrel (from a high of $147 in July), and the economies in Europe and Asia are skidding to a halt. The dollar is showing signs of life…

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Illinois Mortgage Rates Weekly Update

Welcome to Illinois Mortgage Rates and News week in review for the week ending August 15th, my take on the week’s financial news and how it affected Illinois mortgage rates. Over the last several weeks, mortgage rates have been going in a pattern, two steps forward – two steps back. Some weeks it is three steps forward and two steps back and other weeks it is exactly the reverse. In other words mortgage rates have been volatile with big daily moves either up or down, but over all they are in a tight pattern with mortgage rates hardly changing at all from week to week. We may be about to see a change as mortgage rates improve and break out of this dance. Then again, this could be a head fake to the outside before we return back to the range. As has been the case over the last several…

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Illinois Mortgage Rates Weekly Update

Welcome to Illinois Mortgage Rates and News week in review for the week ending August 1st, my take on the week’s financial news and how it affected Illinois mortgage rates. Allow me to take a moment away from the weekly mortgage rate update to mark an anniversary, of sorts. No, there are no holidays, no president’s or celebrity birthdays that I know of, and if it is your wedding anniversary, congratulations, but that’s not what I’m talking about either. Give up? This week marks the 1st anniversary of the mortgage crisis and the resulting credit crunch. Celebrating probably isn’t on the agenda, but it is worth a look back to see what happened and how much has changed over the last year. I mark this as the anniversary of the start of the mortgage mess because it was just a year ago that American Home Mortgage (AHM), the 10th largest…

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Illinois Mortgage Rates Weekly Update

Welcome to Illinois Mortgage Rates and News week in review for the week ending June 27th, my take on the week’s financial news and how it affected Illinois mortgage rates. The Fed took the spotlight this week, and as anticipated, they left interest rates the same but talked tough about the threat of inflation. Wall Street wasn’t happy with the decision. The Dow hit a low just ticks away from a 20% overall decline, the official mark of a Bear market. Not only did the Fed not raise rates, but their announcement balanced the threat of inflation with the threat of further slow downs in the general economy. This signaled that the Fed plans to stand pat, keeping rates the same until something forces their hand. The stock market dived and mortgage bonds benefited. Mortgage backed securities moved through an area of strong resistance Friday afternoon, ending the week at…

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Illinois Mortgage Rates Weekly Update

Welcome to Illinois Mortgage Rates and News week in review for the week ending June 20th, my take on the week’s financial news and how it affected Illinois mortgage rates. Is it over yet? Not so long ago the big worry was that our economy was on the brink. Bad mortgages and the lack of credit were choking the system. Big banks and financial powerhouses were on the edge of failure and our whole economy was in the danger zone. The Fed moved decisively to inject credit into the financial markets and stem the panic. Wall Street breathed a sigh of relief, but the easier credit didn’t trickle down to the small business or home mortgage markets. On Main Street the stranglehold still seems pretty tight. The economy hasn’t been growing, but with the rate cuts and stimulus checks there have been some signs of activity. And now with gas…

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How to Get the Best Rate – Shopping for Your Illinois Mortgage Loan – Part 2

In the first installment of this series we looked at some of the things to look out for when shopping for your mortgage. Here are some more things to be aware of: Hidden Fees – As I said before, most lenders are borrowing money from the same sources and their cost of business is similar. So if one company’s rates are unnaturally low, it mans they are making up the money in other ways. There is a relationship between the rate that is quoted, and the amount of fees that are charged. The lower the rate is, the more money you will have to pay to get it. It costs a certain amount of money to process and fund a mortgage. Mortgage companies are in business to make a profit, so they know that they need to bring in enough income to pay all their expenses and earn a reasonable…

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Illinois Mortgage Rates Weekly Update

Welcome to Illinois Mortgage Rates and News week in review for the week ending June 13th, my take on the week’s financial news and how it affected Illinois mortgage rates. Over the last few weeks there has been a true change of direction in the mortgage bond markets. Mortgage rates have gone up and down as the bond market battled over what was happening with the economy. Are we in a severe recession where jobs and spending are our biggest concern? When this is the biggest fear mortgage rates go down. Is inflation heating up and will it take hold and destroy confidence along with our purchasing power? This fear leads to higher mortgage rates. Up until now there have been arguments on both sides. The economy is a mess, and which mess was worse seemed more academic than practical. Whichever factor was worse the Fed was still on their…

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