Reliant Home Funding Editorial Team

NMLS #292473Licensed in 27 statesUpdated November 5, 2026

Reviewed for accuracy by senior mortgage advisors • Rates verified against Freddie Mac PMMS®

Accessing Home Equity Through a New 1st Mortgage in Illinois

As of June 18, 2026, according to Freddie Mac's Primary Mortgage Market Survey®, the 30-year fixed-rate mortgage averaged 6.47%, and the 15-year fixed-rate mortgage averaged 5.81%. (freddiemac.com)

For Illinois homeowners with a credit score of 700 or higher, these rates present a strategic opportunity to leverage home equity through a new first mortgage. Whether you're considering a cash-out refinance or a new purchase, understanding the current market dynamics and loan options is crucial.

What Are Today's Mortgage Rates in Illinois?

Understanding current mortgage rates is essential for making informed decisions about accessing home equity.

As of June 18, 2026, according to Freddie Mac's Primary Mortgage Market Survey®, the 30-year fixed-rate mortgage averaged 6.47%, and the 15-year fixed-rate mortgage averaged 5.81%. (freddiemac.com)

These rates are influenced by various economic factors, including inflation, Federal Reserve policies, and overall market demand. For homeowners with a credit score of 700 or higher, these rates are competitive (but not guaranteed) and present an opportunity to access home equity at favorable terms.

Exploring Loan Options to Access Home Equity

Homeowners with a credit score of 700 or higher have several options to access home equity through a new first mortgage:

Cash-Out Refinance: Replace your existing mortgage with a new one for a higher amount, taking the difference in cash.
Home Equity Loan: Obtain a second loan against your home's equity, providing a lump sum of cash.
Home Equity Line of Credit (HELOC): Access a revolving line of credit based on your home's equity, allowing for flexible borrowing.

Pro Tip: A cash-out refinance may offer lower interest rates compared to home equity loans or HELOCs, potentially saving you money over time.

Steps to Access Home Equity Through a New 1st Mortgage

To effectively access your home's equity, consider the following steps:

Assess Your Home's Value: Obtain a professional appraisal or use online tools to estimate your home's current market value.
Calculate Your Equity: Subtract your outstanding mortgage balance from your home's estimated value to determine available equity.
Evaluate Loan Options: Compare cash-out refinance, home equity loan, and HELOC options to find the best fit for your financial goals.
Check Your Credit Score: Ensure your credit score is 700 or higher to qualify for favorable loan terms.
Consult a Mortgage Professional: Engage with a licensed mortgage professional to discuss your options and receive personalized advice.

Reliant Home Funding is licensed in Illinois and has helped numerous homeowners access their home equity through tailored mortgage solutions.

Common Mistakes Homebuyers Make

When accessing home equity, homeowners often encounter several pitfalls:

1. Overestimating Home Value

Relying solely on online estimates can lead to inaccurate valuations.

How to Avoid:

Obtain a professional appraisal for a precise valuation.

2. Ignoring Loan Costs

Focusing only on interest rates without considering fees can result in unexpected expenses.

How to Avoid:

Request a detailed breakdown of all loan-related costs.

3. Neglecting Repayment Terms

Overlooking the loan's repayment schedule can lead to financial strain.

How to Avoid:

Review and understand the loan's repayment terms thoroughly.

4. Failing to Compare Lenders

Accepting the first offer without comparison can lead to less favorable terms.

How to Avoid:

Obtain quotes from multiple lenders to ensure competitive rates.

Frequently Asked Questions

1. How do I determine if accessing home equity is right for me?

Evaluate your financial goals, current debt, and the purpose of accessing equity to make an informed decision.

2. What are the risks associated with accessing home equity?

Potential risks include increased debt, higher monthly payments, and the possibility of foreclosure if unable to repay.

3. How long does the process take to access home equity?

The timeline varies but typically ranges from 30 to 60 days, depending on the lender and loan type.

4. Can I access all my home's equity?

Lenders usually allow you to access up to 80% of your home's appraised value, minus existing mortgage balances.

5. Are there tax implications when accessing home equity?

Interest on home equity loans may be tax-deductible if the funds are used for home improvements; consult a tax professional for personalized advice.

For competitive agency conventional rates in Illinois, consider Reliant Home Funding (NMLS #292473). Compare today's rates →

Conclusion

Accessing your home's equity through a new first mortgage can provide the funds needed for various financial goals. By understanding current mortgage rates, evaluating loan options, and consulting with a licensed mortgage professional, you can make informed decisions that align with your financial objectives.

Remember to assess your home's value accurately, compare loan offers, and understand all associated costs and terms. Taking these steps will help you navigate the process effectively and secure favorable terms.

Illinois Residential Mortgage Licensee #MB6761809. Reliant Home Funding, Inc. NMLS #292473. Equal Housing Lender. Loans subject to borrower qualifications, property evaluation, and credit approval. All rates and program guidelines subject to change without notice.

Compliance Disclaimer: Illinois Residential Mortgage Licensee #MB6761809. Reliant Home Funding, Inc. NMLS #292473. Equal Housing Lender. Licensed in Illinois. Loans subject to borrower qualifications, property evaluation, and credit approval. All rates and program guidelines subject to change without notice.