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Maybe youre getting your first house in Illinois, or maybe youre moving to Illinois from yet another state. In any event, its essential that you educate yourself on Illinois home loans before shopping for a mortgage and home. This short article describes what youll need to find out before investing in a house in Illinois:
The buying price of domiciles in Illinois varies widely between zip codes. For instance, in Chicago, Illinois, the median price of a home in the summertime of 2005 was $305,000; however, the median price of a in Oak Brook, Illinois, was 1.5 million. Overall, the median value of a house in Illinois in 2004 was $179,000.
The pace of job growth in Illinois is lower than the nationwide average, among the lowest in the region. In addition, in the last couple of years the values of domiciles in Illinois have now been rising faster than private incomes. But, the rate of foreclosures and bankruptcies in Illinois are below the national average. The rate of home appreciation is lower-than, but close to, the typical national rate of home appreciation.
Illinois has certain regulations that affect their mortgages. For example, prepayment penalties are not allowed on either ARMs or fixed-rate mortgages with interest rates greater than ten percent. Furthermore, Illinois passed a Higher Risk Loan Act in 2003 in a try to fight predatory lending practices.
It does prohibit the usage of certain loan types, while the High-risk Loan Act does not set limits on interest rates and closing prices. Loans with rates of interest that exceed the Treasuries securities price by more than six percent on a first mortgage or eight percent on another mortgage and loans when 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 restrictions and limitations.
Creditors will make high-cost mortgage loans, however they must follow certain limitations. For case, lenders may not collect repayment charges after the borrower has held the house for 36 months, they may not develop a repayment plan that results in a upsurge in the principal balance due, and they should reasonably believe that a borrower will have a way to make the payments on their mortgage. close window
