Illinois Mortgage Calculator
Calculate your Illinois mortgage payment with PMI, property tax, and closing costs.
Useful for home buyers in Chicago, Springfield, Rockford, Peoria, Aurora, Joliet, Naperville, Elgin, and all of Illinois.
Manually verified by: ManyCalcs team
Illinois Mortgage Payment Calculator
Average Home Prices in Major Illinois Cities (2025)
| City | Detached | Semi-Detached | Townhouse | Condo |
|---|---|---|---|---|
| Chicago | $485,000 | $420,000 | $375,000 | $325,000 |
| Springfield | $165,000 | $145,000 | $125,000 | $105,000 |
| Rockford | $125,000 | $110,000 | $95,000 | $85,000 |
| Peoria | $135,000 | $115,000 | $105,000 | $95,000 |
| Aurora | $285,000 | $245,000 | $215,000 | $185,000 |
| Joliet | $265,000 | $225,000 | $195,000 | $175,000 |
| Naperville | $525,000 | $445,000 | $395,000 | $345,000 |
| Elgin | $295,000 | $255,000 | $225,000 | $195,000 |
Mobile Note: On small screens, some columns are hidden for better readability.
Prices are approximate averages for 2025 and may vary by neighborhood and property features.
Illinois Mortgage Economic Overview (2025)
Current Mortgage Rates
- 30-Year Fixed: 6.8% - 7.2%
- 15-Year Fixed: 6.3% - 6.7%
- 5/1 ARM: 6.1% - 6.5%
- VA Loans: 6.5% - 6.9%
- FHA Loans: 6.7% - 7.1%
Federal Economic Indicators
- Fed Funds Rate: 5.25% - 5.50%
- 10-Year Treasury: 4.3% - 4.6%
- Inflation (CPI): 3.1%
- Unemployment: 3.9%
- GDP Growth: 2.4%
Illinois Housing Market Trends
Homeownership Rates
- Illinois: 67.4%
- National Average: 65.8%
- First-Time Buyers: 31%
- Cash Purchases: 19%
Market Activity
- Home Sales (YoY): -12.3%
- Days on Market: 42 days
- Inventory: 4.1 months
- Price Growth: +2.1%
Affordability Index
- IL Affordability: 42%
- Income Needed: $98,000
- Median Income: $72,800
- Housing Burden: 28.2%
Regional Illinois Housing Data (2025)
| Metro Area | Home Price | Median Income | Tax Rate | Median Rent | Afford % |
|---|---|---|---|---|---|
| Chicago Metro | $485,000 | $68,400 | 2.05% | $1,650 | 35% |
| Springfield Metro | $165,000 | $52,800 | 2.28% | $850 | 68% |
| Rockford Metro | $125,000 | $48,200 | 2.45% | $750 | 72% |
| Peoria Metro | $135,000 | $51,600 | 2.35% | $800 | 70% |
| Aurora Metro | $285,000 | $62,400 | 2.18% | $1,280 | 52% |
| Naperville Metro | $525,000 | $89,600 | 1.95% | $1,850 | 42% |
Affordability %: Percentage of households that can afford median-priced home with 20% down payment
Sources: Illinois Association of Realtors, Zillow Research, ATTOM Data
Sources: Illinois Association of Realtors, Zillow Research, ATTOM Data
Factors Increasing Rates
- Federal Reserve Policy: Continued high federal funds rate to combat inflation
- Bond Market Volatility: 10-year Treasury yields affecting mortgage pricing
- Economic Uncertainty: Geopolitical tensions and market volatility
- Credit Spreads: Lender risk premiums remain elevated
- Housing Demand: Limited inventory keeping prices elevated
Potential Rate Relief Factors
- Inflation Moderation: Fed may pivot if inflation continues declining
- Economic Slowdown: Recessionary pressures could prompt rate cuts
- Increased Inventory: More homes for sale reducing price pressure
- Government Programs: First-time buyer assistance and down payment help
- Lender Competition: More competitive mortgage products and pricing
Illinois Housing Market Challenges
Key Challenges:
- 42% of households can afford median-priced home
- $98,000 annual income needed for median home purchase
- Median home price 4.8x median household income
- Property taxes consume 28.2% of housing costs
Mitigating Factors:
- Stable employment in diverse industries
- Strong infrastructure and transportation networks
- Homestead exemptions reduce property tax burden
- IHDA assistance programs for first-time buyers
Impact: Illinois faces population outmigration challenges while maintaining stable housing markets, though high property taxes create affordability pressures for many households.
2025 Illinois Housing Market Outlook
Price Projections
- 2025 Growth: +2% to +4%
- Chicago Metro: +1% to +3%
- Springfield: +2% to +4%
- Rockford: +3% to +5%
Market Conditions
- Sales Volume: Moderate growth expected
- Inventory: Stable at 5-6 months
- Construction: 25,000 new units planned
- Migration: Some outflow to lower-tax states
Rate Expectations
- Q2 2025: 6.5% - 7.0%
- Q3 2025: 6.0% - 6.5%
- Q4 2025: 5.5% - 6.0%
- Risk: Economic volatility could delay cuts
Bottom Line: Illinois's housing market faces challenges from high property taxes and population outflow, but offers more affordable housing options outside Chicago. Property tax considerations are critical for total homeownership costs, and downstate markets show more stability.
Illinois Economy & Lifestyle Guide
Economic Overview
Major Companies & Employers
Technology & Finance
- Boeing - Chicago (180,000+ global)
- Abbott Laboratories - Abbott Park (113,000+)
- Caterpillar - Deerfield (110,000+ global)
- Motorola Solutions - Chicago (19,000+)
- Allstate - Northbrook (53,000+)
- McDonald's - Chicago (210,000+ global)
- United Airlines - Chicago (95,000+)
- Walgreens - Deerfield (200,000+ global)
Manufacturing & Agriculture
- John Deere - Moline (77,000+ global)
- State Farm - Bloomington (58,000+)
- ADM - Chicago (40,000+ global)
- Illinois Tool Works - Glenview (50,000+)
- Baxter International - Deerfield (60,000+)
Key Industries
- Manufacturing: $170B+ annually, machinery & transportation equipment
- Agriculture: $19B+ annually, corn & soybean leader
- Finance: Major trading & banking hub
- Transportation: $50B+ annually, logistics center
- Healthcare: Northwestern Memorial, Rush University
- Technology: Growing fintech & software sector
Economic Fact: Illinois's economy ranks 5th in the US with $900B+ GDP, and Chicago is the 3rd largest city in America.
Top Attractions & Destinations
Major Cities & Culture
- Chicago - Architecture, deep-dish pizza, blues music
- Springfield - Lincoln sites, state capital
- Rockford - Anderson Japanese Gardens
- Peoria - Caterpillar Visitors Center
Natural Attractions
- Starved Rock State Park - Waterfalls & canyons
- Garden of the Gods - Shawnee National Forest
- Lake Michigan Shoreline - Beaches & dunes
- Mississippi River - Great River Road
- Cahokia Mounds - Ancient Native American site
Entertainment & Sports
- Soldier Field - Chicago Bears
- Wrigley Field - Chicago Cubs
- United Center - Bulls & Blackhawks
- Navy Pier - Entertainment complex
Airbnb & Short-Term Rental Prices (2025)
| Area | Avg/Night | Monthly Est. |
|---|---|---|
| Chicago | $185 | $4,625 |
| Springfield | $85 | $2,125 |
| Rockford | $75 | $1,875 |
| Peoria | $80 | $2,000 |
| Aurora | $125 | $3,125 |
| Naperville | $165 | $4,125 |
| Elgin | $115 | $2,875 |
| Joliet | $105 | $2,625 |
Monthly estimates based on 25-day occupancy
Why Illinois - Professionals
Career Opportunities
- Major financial center (Chicago avg $125K+)
- Manufacturing & agriculture leadership
- Transportation & logistics hub
- Healthcare & biotech growing sectors
- Fortune 500 headquarters concentration
Lifestyle & Social
- World-class museums & cultural attractions
- Architecture & urban planning excellence
- Four-season outdoor activities
- Deep-dish pizza & diverse food scene
- Midwest values & community spirit
Challenges
- Cold winters with significant snowfall
- Property taxes among highest nationally
- Population decline in some areas
- State budget & pension challenges
Why Illinois - Families
Education & Opportunities
- Top universities (Northwestern, University of Chicago, UIUC)
- Strong public schools in Naperville, Lincolnshire, etc.
- Excellent STEM programs & research universities
- Museum of Science & Industry, Field Museum
- Quality public library systems
Family Lifestyle
- Historic neighborhoods with character
- Lake Michigan beaches & Great Lakes
- State parks & outdoor recreation
- Strong community traditions
- Affordable family entertainment options
Family Challenges
- High property taxes impacting budgets
- Cold winters requiring preparation
- Some areas experiencing population decline
- Childcare costs ($900-2,000/month avg)
Illinois Advantages: Major financial center, excellent education, cultural attractions, transportation hub, four seasons, strong manufacturing base
Key Considerations: High property taxes, cold winters, population decline in some areas, state fiscal challenges, higher cost of living in Chicago
How Mortgage Rules Work in Illinois
- Property Tax: Illinois's average effective property tax rate is about 2.16% (among highest in US). Property taxes are paid annually and may be included in your monthly payment.
- PMI (Private Mortgage Insurance): If your down payment is less than 20%, you must pay PMI, which is added to your monthly payment until you reach 20% equity.
- Closing Costs: Illinois's closing costs include title insurance, attorney fees, and other expenses.
Example: On a $400,000 home with 10% down in Chicago, you pay PMI and property tax. Closing costs are typically 2-4% of the purchase price.
Illinois Mortgage FAQ
Common questions and detailed answers for Illinois home buyers covering first-time buyer assistance, financing, and affordability.
Illinois offers several first-time buyer programs:
Illinois State Programs
- IHDA SmartMove: Down payment assistance up to 5%
- IHDA Opening Doors: Below-market interest rates
- Illinois 1st Home: First-time buyer assistance program
- HOME Investment Partnerships: Local down payment assistance
Federal Programs
- FHA Loans: 3.5% down payment, flexible credit
- VA Loans: 0% down for eligible veterans
- USDA Loans: 0% down in rural areas
- Conventional 3% Down: Fannie Mae/Freddie Mac programs
Typical Requirements: First-time buyer status (or haven't owned in 3+ years), income limits (80-120% of Area Median Income), completion of homebuyer education course, minimum credit score 620+.
Down payment requirements vary by loan type and lender:
| Loan Type | Min Down | Typical Range | Notes |
|---|---|---|---|
| Conventional | 3% | 5% - 20% | PMI if <20% |
| FHA | 3.5% | 3.5% - 10% | MIP required |
| VA | 0% | 0% - 10% | Veterans only |
| USDA | 0% | 0% - 5% | Rural areas |
| Jumbo | 10% | 10% - 20% | >$766,550 |
Illinois Averages (2025)
- First-time buyers: 8.2% average
- Repeat buyers: 16.5% average
- All buyers: 13.8% average
- Cash purchases: 28% of all sales
Strategy: Higher down payments reduce monthly costs but require more upfront cash. Consider Illinois property tax rates when calculating total monthly payments.
Illinois closing costs typically range from 2-4% of home price (average 3.2%):
Major Cost Components
- Title Insurance: $1,000 - $2,500
- Attorney/Escrow Fees: $800 - $2,000
- Loan Origination: 0.5% - 1% of loan amount
- Appraisal: $450 - $750
- Home Inspection: $350 - $700
- Credit Report: $50 - $100
- Recording Fees: $50 - $200
Prepaid Items
- Property Tax (prorated): Varies by purchase date
- Homeowner's Insurance: $1,000 - $2,500
- Prepaid Interest: Based on closing date
- HOA Fees (if applicable): Prorated amount
Example: On a $400,000 home, expect $8,000 - $16,000 in closing costs (avg $12,800).
Illinois-Specific Considerations
- Transfer Tax: Illinois state transfer tax: $1.00 per $1,000 (local taxes may apply)
- Attorney Review: Illinois law encourages attorney involvement in closings
- Property Tax Proration: Based on tax year (January 1 - December 31)
- Chicago Transfer Tax: Additional $10.25 per $1,000 in Chicago
Illinois property taxes are based on appraised value and fund local services:
Key Facts
- Average Rate: 2.16% statewide (among highest in US)
- Assessment: Based on appraised market value
- Payment: Due typically in two installments
- Exemptions: Homestead exemption available
- Appeals: Can appeal assessment values
Major Metro Areas
- Chicago (Cook County): 2.05%
- Springfield (Sangamon County): 2.28%
- Rockford (Winnebago County): 2.45%
- Peoria (Peoria County): 2.35%
Illinois Homestead Exemption
Illinois provides property tax relief through homestead exemptions:
- General homestead exemption reduces EAV by $10,000
- Senior homestead exemption (65+) additional $5,000 reduction
- Senior freeze exemption locks assessed value at age 65
- Must be primary residence and file annually
Example Calculation
$400,000 home in Chicago:
- Tax Rate: 2.27%
- With $10K exemption: $390,000 taxable
- Annual Tax: $8,853
- Monthly (escrow): $738
Tip: Property taxes can be appealed through the Board of Review. Appeals must be filed within 30 days of receiving assessment notice.
Illinois affordability varies significantly by region with higher property taxes:
Affordability Guidelines
- 28% Rule: Housing ≤ 28% of gross monthly income
- 36% Rule: Total debt ≤ 36% of gross income
- Illinois Reality: Many pay 30-40% due to high property taxes
- Debt-to-Income: Most lenders allow up to 43-50%
Income Requirements by Area
- Chicago Metro: $115,000+
- Springfield: $65,000+
- Rockford: $55,000+
- Peoria: $58,000+
- Aurora: $85,000+
Affordability Strategies
- Increase Income: Side businesses, career advancement
- Reduce Debt: Pay off credit cards, student loans
- Save More: Larger down payment reduces monthly costs
- Consider Location: Smaller Illinois cities more affordable
- Use Assistance: Down payment help programs
- Co-buying: Purchase with family/friends
Reality Check: 42% of IL households can afford median-priced homes vs. 65.8% nationally due to high property taxes.
Alternative Homeownership Options
- Condos/Townhomes: Lower entry prices
- Fixer-uppers: Build equity through improvements
- Shared Equity: Programs like IHDA assistance
- House Hacking: Rent out rooms/units
- Relocate: Consider more affordable IL regions
- Wait & Save: Build larger down payment
Quick Affordability Check
Rule of thumb for IL:
- Home price ≤ 3-4x annual income (due to high property taxes)
- Monthly payment ≤ 35% gross income
- Emergency fund: 6+ months expenses
- Down payment + closing costs + tax reserves saved
Success Strategy: Start with a realistic budget, explore all financing options, and consider building wealth over time through homeownership.
Affordability Resources:
IAR Affordability Index,
CFPB Affordability Guide,
Freddie Mac Research,
NAR Affordability Data
Illinois Mortgage Education Guide
Essential mortgage information for Illinois home buyers, including loan types, down payment requirements, closing costs, and PMI guidelines.
Mortgage Types Available in Illinois
Conventional Loans
- 30-Year Fixed: Most popular, stable payments
- 15-Year Fixed: Higher payments, lower total interest
- Adjustable Rate (ARM): Lower initial rates, risk of increases
- Jumbo Loans: For homes above $766,550 (2024 limit)
Government-Backed Loans
- FHA Loans: 3.5% down, flexible credit requirements
- VA Loans: 0% down for eligible veterans
- USDA Loans: 0% down in eligible rural areas
Illinois-Specific Programs
- IHDA SmartMove: Down payment assistance
- IHDA Opening Doors: Below-market rate loans
- Illinois 1st Home: Competitive rates
- IHDA SmartBuy: First-time buyer program
Interest Rate Types
- Fixed Rate: Same rate for entire loan term
- ARM (5/1, 7/1, 10/1): Fixed period then adjustable
- Interest-Only: Pay only interest initially
Down Payment Averages in Illinois
By Loan Type
- Conventional Loans: 5% - 20%
- FHA Loans: 3.5% minimum
- VA Loans: 0% down
- USDA Loans: 0% down
- Jumbo Loans: 10% - 20%
Illinois Averages (2025)
- First-Time Buyers: 8.2%
- Repeat Buyers: 16.5%
- All Buyers: 13.8%
- Cash Purchases: 19% of sales
Tip: Higher down payments reduce PMI costs and monthly payments but require more upfront cash.
Data Sources:
NAR Home Buyers Report,
IAR Market Data
Illinois Closing Costs
Typical Cost Range
- Total Closing Costs: 2% - 4% of home price
- Illinois Average: 3.2% of purchase price
- Example ($400K home): $12,800
Major Components
- Title Insurance: $1,000 - $2,500
- Attorney/Escrow Fees: $800 - $2,000
- Home Inspection: $350 - $700
- Appraisal: $450 - $750
- Loan Origination: 0.5% - 1% of loan
- Property Tax (prorated): Varies
- Homeowner's Insurance: $1,000 - $2,500
Reference:
CFPB Closing Costs Guide,
IAR Closing Cost Data
Private Mortgage Insurance (PMI) Rules in Illinois
When PMI is Required
- Down Payment: Less than 20%
- Loan-to-Value: Above 80%
- Loan Types: Conventional loans only
- FHA Alternative: Mortgage Insurance Premium (MIP)
Note: VA loans don't require PMI but have a funding fee.
PMI Cost Ranges
- 5% - 9.99% Down: 0.85% - 1.20% annually
- 10% - 14.99% Down: 0.50% - 0.95% annually
- 15% - 19.99% Down: 0.30% - 0.75% annually
- Credit Score Impact: Lower scores = higher PMI
Example: $700K loan, 10% down = $292-$554/month PMI
PMI Removal Rules
- Automatic Removal: At 78% LTV
- Request Removal: At 80% LTV
- Requirements: Good payment history
- Appraisal: May be required for removal
- Recast Option: Large payment to reduce LTV
Tip: Track your home value increases to accelerate PMI removal.
PMI vs. MIP Comparison
| Feature | Conventional PMI | FHA MIP |
|---|---|---|
| Min Down | 3% - 5% | 3.5% |
| Removal | At 78-80% LTV | 11 years min |
| Cost | 0.3%-1.2%/yr | 0.85%/yr + upfront |
| Credit Req | Higher scores | More flexible |
Illinois Down Payment Assistance Programs
Statewide Programs
- IHDA SmartMove: Up to 5% down payment help
- IHDA Opening Doors: Below-market rate loans
- Illinois 1st Home: First-time buyer program
- HOME Investment Partnerships: Local assistance
Local Programs
- Chicago: Cook County First-Time Buyer Program
- Springfield: Sangamon County Housing Assistance
- Rockford: RAHA Down Payment Assistance
- Peoria: PCDC Homeownership Program
Eligibility Requirements (Typical)
- First-time home buyer (or haven't owned in 3+ years)
- Income limits (usually 80-120% of Area Median Income)
- Completion of homebuyer education course
- Primary residence requirement
- Minimum credit score (typically 620+)
Illinois Mortgage Application Timeline
Pre-Approval (1-3 days)
- Submit application
- Provide income docs
- Credit check
- Get pre-approval letter
Home Shopping (30-60 days)
- Search for homes
- Make offers
- Negotiate terms
- Sign purchase contract
Processing (30-45 days)
- Submit full application
- Order appraisal
- Home inspection
- Underwriting review
Closing (3-5 days)
- Final walkthrough
- Review closing docs
- Wire closing funds
- Get keys!
Illinois Specific: Illinois mortgage processing may take longer due to additional property tax documentation requirements. Attorney involvement in closings is more common, and transfer tax stamps must be purchased at closing.
Process Guide:
CFPB Home Buying Guide,
IAR Home Buying Tips
Illinois Mortgage Calculator Summary
Key Features
- Illinois Property Tax Integration: Accurate 2.16% average rate calculation
- PMI Calculator: Automatic private mortgage insurance estimation
- Closing Cost Estimates: Illinois-specific 3.2% average calculation
- IHDA Program Support: Information on state assistance programs
- Multi-City Coverage: Chicago, Springfield, Rockford, Peoria, Aurora, and more
Popular Calculations
- Monthly Payments: Principal, interest, taxes, insurance (PITI)
- Biweekly Options: Accelerated payment schedules
- Down Payment Analysis: Impact on PMI and monthly costs
- First-Time Buyer: Special program eligibility assessment
- Affordability Planning: Income requirement calculations
Illinois Housing Market Context (2025)
Illinois ranks among the highest property tax states in the US with an average effective rate of 2.16%. Our calculator incorporates Cook County (Chicago) rates at 2.05%, Sangamon County (Springfield) at 2.28%, and Winnebago County (Rockford) at 2.45%. Current mortgage rates range from 6.5-7.2% for 30-year fixed loans, with Illinois homeownership at 67.4% compared to the 65.8% national average.