Illinois Mortgage What To Expect When Buying A Home In Illinois

Illinois Mortgage What To Expect When Buying A Home In Illinois 1

Illinois Mortgage - What to​ Expect When Buying a​ Home in​ Illinois
Maybe you’re buying your first home in​ Illinois,​ or​ perhaps you’re relocating to​ Illinois from another state .​
Either way,​ it’s important that you​ educate yourself on​ Illinois home loans before shopping for a​ home and mortgage .​
This article explains what you’ll need to​ know before buying a​ home in​ Illinois:
The price of​ homes in​ Illinois varies widely between zip codes .​
For example,​ in​ Chicago,​ Illinois,​ the​ median price of​ a​ home in​ the​ summer of​ 2018 was $305,​000; however,​ the​ median price of​ a​ home in​ Oak Brook,​ Illinois,​ was 1.5 million .​
Overall,​ the​ median price of​ a​ home in​ Illinois in​ 2004 was $179,​000.
The rate of​ job growth in​ Illinois is​ lower than the​ national average,​ among the​ lowest in​ the​ nation .​
Additionally,​ in​ the​ last few years the​ prices of​ homes in​ Illinois have been rising faster than personal incomes .​
However,​ the​ rate of​ foreclosures and bankruptcies in​ Illinois are lower than the​ national average .​
The rate of​ home appreciation is​ lower-than,​ but close to,​ the​ average national rate of​ home appreciation.
Illinois has certain laws that apply to​ their mortgages .​
For example,​ prepayment penalties are not allowed on​ either ARMs or​ fixed-rate mortgages with interest rates higher than eight percent .​
Additionally,​ Illinois passed a​ High Risk Loan Act in​ 2003 in​ an​ attempt to​ counteract predatory lending practices.
While the​ High Risk Loan Act does not put limits on​ interest rates and closing costs,​ it​ does prohibit the​ use of​ certain loan types .​
Loans with interest rates that exceed the​ Treasuries securities rate by more than six percent on​ a​ first mortgage or​ eight percent on​ a​ second mortgage and loans in​ which the​ total points and fees required to​ be paid by the​ borrower at​ closing exceed eight percent of​ the​ total loan amount are subject to​ certain regulations and limitations.
Lenders may make high-cost home loans,​ but they must abide by certain restrictions .​
For example,​ lenders may not collect repayment penalties after the​ borrower has owned the​ home for three years,​ they may not create a​ repayment schedule that results in​ an​ increase in​ the​ principal amount owed,​ and they must reasonably believe that a​ borrower will be able to​ make the​ payments on​ their mortgage.

Illinois Mortgage What To Expect When Buying A Home In Illinois

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