Illinois Mortgage Calculator: Estimate Your Monthly Payment
Updated: January 18, 2024
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The median home value in Illinois is $183,500, and the average outstanding mortgage amount is $176,425. This comes to a difference of $7,075. Meanwhile, the average household income in the state is $7,405 per month. This means Illinois residents spend around 15% of their income on mortgage expenses.
The homeownership rate in Illinois is 67.3% as of 2020. This is slightly higher than the 2019 rate of 65.1%. MoneyGeek’s Illinois state mortgage calculator allows you to modify specific criteria to get a tailor-made quote that considers all the factors that are unique to you.
Our Illinois mortgage calculator can help you estimate your monthly costs, find ways to reduce your monthly mortgage payments and compare quotes from multiple lenders to find the cheapest option.
Start Here: Plug In Your Mortgage Factors
MoneyGeek’s mortgage calculator gives you a complete estimate of your mortgage payments. Learn more about all the factors included in our calculator and how they can impact your mortgage costs.
Why and How to Use Our Mortgage Calculator
The average cost of a home in Illinois is $183,500. You can use our Illinois mortgage calculator to get an estimate of your costs and determine whether they are more or less than the average. Our calculator considers 12 factors and gives you an idea of how each factor affects the overall cost of a mortgage. This allows you to identify where you may need to make adjustments to cut costs.
To make the best use of our calculator, you must have an idea of your budget for your home or how much mortgage you can afford. You’ll also need to research the interest charges you need to pay. To get a more accurate idea of your mortgage costs, you’ll need information about the following factors.
Home Price:
This is where you put the maximum price you want to pay for a home. Alternatively, you can also enter the amount of the loan that you’re looking to borrow from the lender.
Down Payment:
The amount of your initial payment depends on what you’re comfortable paying and the lender’s terms. Making a larger down payment means lower regular monthly payments.
Interest Rate:
This is the rate the lender charges on the amount that you borrowed. You can approach multiple lenders to get the best interest rate or use MoneyGeek’s mortgage rate report.
Loan Terms:
This is the duration over which you can repay the loan. Typically, this is 15, 20 or 30 years.
Payments per Year:
Lenders usually ask for monthly payments. You also have a choice of making annual payments.
Property Tax:
At $4,942 per year, Illinois is the second most expensive state when it comes to property taxes. You can pay this either every month or annually.
HOA Fees:
If you buy a house in a community with a homeowners association, you will need to make monthly payments. This is often referred to as an HOA fee.
Principal & Interest:
This is the total of the amount you borrowed from the lender (the principal amount) and the interest that is charged by the lender on the principal.
Monthly Payment:
This is the amount that you have to pay every month and includes the principal, the interest and the other expenses, such as the property tax and insurance.
Principal Payment:
This is your payment towards the amount you’ve borrowed. Your initial monthly repayments will only consist of a small portion towards the principal and will keep increasing throughout your loan term.
Interest Payment:
Your payment towards the interest component will be higher in the initial days and will keep reducing over the years.
Total Cost with Interest:
This is the total cost you have to pay to the lender, which consists of the principal and the interest.
At $1,130 per month, Illinois residents pay roughly $28 less than the national average. However, you can reduce your mortgage costs by considering some of the following tips.
- You can choose a longer loan term to reduce your monthly payments.
- You can choose a location where property taxes are lower.
- If you feel that your original budget for buying a home will result in higher monthly payments, you can consider buying a less expensive home.
- Research rates from multiple lenders to find one that offers the lowest interest rate. Even a small reduction in your interest rate will have a major impact during your loan’s term.
- Check if you qualify for homeowners assistance from the Illinois government.
Next Steps: What to Do After You Have Estimated Your Mortgage Payments
oneyGeek’s guide on rates and other homeowners’ resources for Illinois residents give you extensive information to help you buy a home in the state. The following steps can help you move forward with your home buying process.
- Shop & Compare Rates - MoneyGeek recommends comparing interest rates from at least three lenders to get the most affordable mortgage in Illinois.
- Not Ready to Buy? - If you still haven’t made up your mind whether to buy or rent a home in Illinois, our rent vs buy guide can help you make a more informed decision.
- Learn More - You can also read our guides on other mortgage options such as FHA loans, reverse mortgages and VA home loans to see if these are better options for your circumstances.
Frequently Asked Questions About Mortgages in Illinois
Consider your salary and the down payment you are comfortable making. On the lender’s side, they will take into account your debt-to-income ratio to calculate how much of a loan you qualify for.
The average outstanding mortgage amount in Illinois is $176,425.
Making a larger down payment typically reduces your monthly mortgage rates. However, if you qualify for government programs such as those provided by the VA and USDA, you might be able to make a lower or no down payment.
If you’re taking out a conventional or non-government loan, you may be asked to purchase private mortgage insurance (PMI), especially if your down payment is less than 20% of the overall value of your home.
Property taxes are a part of your monthly mortgage payments. Illinois has the second-highest property tax rates in the country at $4,942 per year.
The average monthly mortgage payment in Illinois is $1,130, which is around $28 lower than the national average.
The median home price in Illinois is around $183,500.
sources
- IHDA. "Illinois Emergency Homeowner Assistance Fund (ILHAF)." Accessed March 3, 2022.