Illinois Mortgage What To Expect When Buying A Home In Illinois

Maybe you are buying your first home in Illinois, or maybe you move to another state of Illinois. Anyway, it is important that you learn about home loans Illinois before buying a home and mortgage. This article explains what you need to know before buying a home in Illinois:

Home prices in Illinois varies widely between zip codes. For example, in Chicago, Illinois, the average price of a house in the summer of 2005 was US $ 305,000; However, the average price of a home in Oak Brook, Illinois, was 1.5 million. Overall, the average price of a home in Illinois in 2004 was US $ 179,000.

Moreover, in recent years, house prices in Illinois grew faster than personal income. However, the rate of foreclosures and failures in Illinois are below the national average. The home appreciation rate is less than, but close to the national average of home recovery.

Illinois has certain laws applicable to their mortgage. For example, prepayment penalties are not allowed in both arms or fixed rate mortgages with rising interest rates eight percent. In addition, Illinois approved a high-risk loan law in 2003 in an attempt to counter the predatory lending practices.

While the loan risk Act does not place limits on interest and closing costs rates, prohibiting the use of certain types of loans. Lending interest rates that exceed the Treasury bond rate of over six percent in a first mortgage or eight percent on a second mortgage and loans in total points and fees to be paid by borrower to close more than eight percent of the total loan amount is subject to certain rules and limitations.