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Illinois Mortgages

Written by Rachel Arieff
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Illinois mortgages, like Illinois homes, come in all shapes and sizes. Illinois is attractive to prospective home buyers because it contains the exciting, culturally rich city of Chicago. However, for those who want to be away from the hustle and bustle, Illinois offers plenty of rural, suburban and small-town living.

The first thing you need to do when researching Illinois mortgages is to know your own financial situation. How much can you afford to spend on a mortgage? Be absolutely clear about your assets, income, and expenses, plus what you foresee for yourself down the road. A miscalculation in that department can lead to the headache, or even heartbreak, of defaulted payments on home mortgage loans further down the road.

Basics of Illinois Mortgages

Once you're familiar with your financial situation, you next need to determine what kinds of new home loans you want to pursue. The two main types of mortgages are the fixed-rate and the adjustable, or variable-rate mortgage. Different people generally choose one or the other mortgage types depending on how much risk or reliability they want to assume.

The fixed-rate mortgage is just that - a mortgage with a fixed interest rate, yielding monthly payments always of the same amount. If you get in on these types of Illinois mortgages when interest rates are low, this option may be for you. The adjustable-rate mortgage carries an interest rate that fluctuates with the movements of the market, and is attractive to those who are willing to take the risk of fluctuating payment amounts based on the belief that interest rates will drop.


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