Illinois Home Mortgage Loan Tips: 100% Home Mortgage with No Money Down
Rates from Chicago to Springfield have never been better on mortgages for purchasing. Illinois home buying activity has slowed down. Sales of single-family homes and condominiums are down 13.7% as compared to record-setting figures in August of last year. The median home price has dropped 5.8% from last year to $210,900, according to the Illinois Association of Realtors latest report.
Illinois Mortgage Rates as Low as 3.125%.
"Overall the Illinois housing market is stabilizing and we should see some leveling off of prices and a return to a more balanced market between buyers and sellers," said Zoretich, broker-owner of Zoretich Realty Group in Chicago. "Condo sales were the second highest on record for the month of August and we continue to remain positive about Illinois' housing market given the backdrop of attractive mortgage interest rates and continued demand for housing from baby boomers and immigrant populations."
Kay Wirth, president-elect for the Illinois Association of Realtors says that she expects the Illinois residential real estate market, which experienced four record-breaking years, to maintain roughly the same pace for the remainder of 2006. Mortgage rates have been declining in recent weeks, with the current rates hovering just below 6%.
With declining rates and prices, buying your first home or financing a second home in Illinois is becoming more affordable. Thomas M. Stevens, senior vice president of NRT Inc. says, "Sellers are starting to become more realistic, and that could provide some lift to home sales because there is a healthy underlying demand from household growth and job creation. At the same time interest rates have moderated, so there are good opportunities for buyers in today's market."
Because the median price for homes in Illinois, including popular destinations like Chicago and Springfield, are below the Freddie Mac and Fannie Mae 2006 limit of $417,000, unless you plan on purchasing a luxury home, you probably won't have to worry about needing a jumbo loan. However, unless you have around $42,000 available for the 20% down payment, you may want to consider a 100% 1st mortgage (no money down home loan), also known as an 80-20 home mortgage or piggyback loan. These loans typically entail a first mortgage for 80% of the purchase price and a piggyback second mortgage for the 20% balance.
With rates being low, you should be able to get a fixed interest rate loan, so you don't have to worry about rising interest rates associated with adjustable rate loans or the risks of interest-only loans. If you're looking to buy a second home or investment property, now may be the time to take advantage of low rates by getting a cash-out home equity loan and using the money for the down payment on your new property.
Nationwide Mortgages offers consumers in the Mid-West home mortgage loan tips for refinance, home equity, second mortgages, home purchase and debt consolidation loans.
Shop & Compare home loan products by state, with helpful advice for homeowners in Illinois.