Reliant Home Funding Editorial Team

NMLS #292473Licensed in 27 statesUpdated October 13, 2026

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

Why Illinois Homeowners Choose 1st Mortgage Refinance Over HELOC

As of June 21, 2026, according to Freddie Mac's Primary Mortgage Market Survey® (PMMS®), the 30-year fixed mortgage rate is 6.47%, and the 15-year fixed rate is 5.81%. These rates, as of June 21, 2026, provide compelling opportunities for Illinois homeowners considering refinancing options.

In Illinois, the median home value is approximately $290,210, reflecting a 4.9% increase over the past year. This appreciation, combined with current mortgage rates, makes refinancing a strategic move for many homeowners.

What Are Today's Mortgage Rates in Illinois?

Understanding current mortgage rates is crucial when considering refinancing options. Here's a snapshot of the prevailing rates:

Loan Type	Interest Rate	Weekly Change
30-Year Fixed	6.47%	+0.05%
15-Year Fixed	5.81%	+0.04%

These rates, as of June 21, 2026, according to Freddie Mac's PMMS®, are subject to change based on market conditions. For the latest rates, visit Freddie Mac PMMS.

Why Choose a First Mortgage Refinance?

For homeowners with a 700+ FICO score, established income, and a down payment of 10% or more, refinancing a first mortgage offers several advantages:

Lower Interest Rates: First mortgage refinances typically offer lower interest rates compared to HELOCs, leading to potential long-term savings.
Fixed Payments: Refinancing can provide a fixed interest rate, ensuring predictable monthly payments and protection against future rate increases.
Debt Consolidation: Refinancing allows homeowners to consolidate existing debts into a single mortgage, simplifying payments and potentially reducing overall interest costs.
Access to Equity: Homeowners can access a portion of their home's equity through refinancing, which can be used for home improvements, investments, or other financial needs.

Pro Tip: Before deciding, assess your financial goals, current mortgage terms, and the potential benefits of refinancing.

Steps to Refinance Your First Mortgage in Illinois

Refinancing your first mortgage involves several key steps:

Evaluate Your Financial Situation: Review your credit score, income, and existing debts to determine your refinancing eligibility.
Research Lenders: Compare offers from multiple lenders to find the most favorable terms and rates.
Gather Documentation: Prepare necessary documents, including proof of income, tax returns, and information about your current mortgage.
Apply for Refinancing: Submit your application to the chosen lender and await approval.
Close the Loan: Review and sign the closing documents to finalize the refinancing process.

In Illinois, the median sale price for a single-family home is $314,200, reflecting a 4.6% year-over-year increase. This appreciation, combined with current mortgage rates, makes refinancing a strategic move for many homeowners.

Common Mistakes Homebuyers Make

When refinancing, homeowners should be aware of common pitfalls:

1. Ignoring Closing Costs

Refinancing involves closing costs that can offset potential savings.

Impact: Unexpected expenses can diminish the financial benefits of refinancing.
How to Avoid: Request a detailed breakdown of all fees from your lender before proceeding.

2. Overlooking Loan Terms

Focusing solely on interest rates without considering loan terms can be misleading.

Impact: Longer loan terms may result in lower monthly payments but higher overall interest costs.
How to Avoid: Evaluate the total cost of the loan over its entire term.

3. Not Considering Future Plans

Failing to account for future financial goals can lead to suboptimal refinancing decisions.

Impact: Refinancing may not align with your long-term objectives.
How to Avoid: Align refinancing decisions with your financial and personal goals.

4. Neglecting to Shop Around

Accepting the first offer without comparison can result in missed opportunities.

Impact: Potentially higher rates and less favorable terms.
How to Avoid: Obtain quotes from multiple lenders to ensure competitive terms.

5. Misunderstanding Tax Implications

Not fully understanding the tax consequences of refinancing can lead to surprises.

Impact: Unexpected tax liabilities.
How to Avoid: Consult with a tax professional to understand potential tax impacts.

Frequently Asked Questions

1. How long does the refinancing process take?

The refinancing process typically takes 30 to 45 days, depending on the lender and complexity of the loan.

2. Can I refinance if I have an existing HELOC?

Yes, refinancing can help consolidate your HELOC into your primary mortgage, potentially simplifying payments and securing a lower interest rate.

3. Will refinancing affect my credit score?

Refinancing may cause a temporary dip in your credit score due to the hard inquiry, but it can improve your score over time if it leads to better financial management.

Next Steps for Interested Homeowners

Don't wait to take advantage of these current rates. Start your online application today for personalized rates and quick pre-approval!

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.