Mortgage Calculator Illinois 2026: Payment, PMI & Transfer Tax
This mortgage calculator for Illinois estimates your full monthly payment — principal & interest, property tax, homeowners insurance and PMI — plus the Illinois state and county transfer tax. Enter your own rate; everything is calculated privately in your browser.
A mortgage calculator for Illinois estimates the full monthly cost of a Illinois home loan: principal and interest from standard amortization, plus property tax, homeowners insurance and private mortgage insurance (PMI) when you put down less than 20%. It also shows the Illinois state and county real estate transfer tax of $0.75 per $500 of value, which the seller normally pays. Chicago and some other home-rule cities add their own tax.
How the Mortgage Calculator Illinois Formula Works (Worked Example)
Principal and interest use the standard amortization formula M = P × r(1+r)n ÷ ((1+r)n − 1), where P is the loan amount, r the monthly rate (annual rate ÷ 12) and n the number of payments. Property tax is the home price × your local rate ÷ 12, insurance is your annual premium ÷ 12, and PMI is the loan amount × your PMI rate ÷ 12. Example: a $300,000 Illinois home, 10% down, 30-year fixed at a user-entered 6.5% (click Load Example above to reproduce it).
| Item | Inputs | Monthly |
|---|---|---|
| Principal & interest | $270,000 loan, 6.5%, 360 payments | $1,706.58 |
| Property tax | 1.88% of $300,000 ($5,640/yr) | $470.00 |
| Homeowners insurance | $1,650/yr (example — use your quote) | $137.50 |
| PMI | 0.6% of $270,000 ($1,620/yr) | $135.00 |
| Total monthly payment | $2,449.08 | |
| State + county transfer tax (one-time, usually seller) | $300,000 ÷ 500 × $0.75 | $450.00 |
Over 30 years this loan pays about $344,370 in interest. Your rate is an input, not an assumption — check the current weekly national average in Freddie Mac’s Primary Mortgage Market Survey and compare lender Loan Estimates.
Illinois Property Tax Rate and Your Monthly Payment
Illinois has the second-highest effective property tax rate on owner-occupied homes in the US: 1.88% of home value, according to the Tax Foundation (2026 edition, based on Census American Community Survey data). Rates vary widely by county, township and school district. The general homestead exemption (35 ILCS 200/15-175) reduces the equalized assessed value of a primary residence by up to $10,000 in Cook County, $8,000 in the counties next to Cook and $6,000 elsewhere, so apply for it with your county assessor after you buy.
| Property tax rate | Annual tax on $300,000 | Added to monthly payment |
|---|---|---|
| 1.32% | $3,960 | $330.00 |
| 1.88% (state effective rate) | $5,640 | $470.00 |
| 2.63% | $7,890 | $657.50 |
Illinois Closing Costs: State, County and City Transfer Taxes
Illinois charges a state real estate transfer tax of $0.50 per $500 of value and every county adds $0.25 per $500 (35 ILCS 200/31-10); the seller customarily pays both. Home-rule cities can add their own tax: Chicago charges $5.25 per $500, of which the buyer pays $3.75 and the seller $1.50, according to the Chicago Department of Finance. Check your city before you budget.
| Illinois item | Amount | Usually paid by |
|---|---|---|
| State transfer tax (35 ILCS 200/31-10) | $0.50 per $500 of value — $300 on $300,000 | Seller (custom) |
| County transfer tax | $0.25 per $500 of value — $150 on $300,000 | Seller (custom) |
| Chicago transfer tax (city only) | $3.75 per $500 buyer portion — $2,250 on $300,000; $1.50 per $500 seller portion | Buyer and seller |
| Escrow deposits for tax and insurance | Set by your lender — see your Loan Estimate | Buyer |
| Recording, lender, appraisal and title charges | Vary by county, lender and title company — compare Loan Estimates | Negotiable |
Some costs are negotiable, and sellers sometimes cover part of a buyer’s closing costs as a concession.
How Illinois Mortgage Rates Affect Your Payment
Rates in Illinois follow national mortgage markets and vary by lender, credit score, down payment and loan type. On a $255,000 home with 20% down, an example rate of 7% produces a monthly principal and interest payment of approximately $1,357. A 0.25-point rate increase adds roughly $34 to that payment, so shopping multiple lenders can save thousands over the life of the loan.
Adjustable-rate mortgages (ARMs) often start lower but carry rate-reset risk, which is why many Illinois homebuyers choose 30-year fixed loans for payment predictability. FHA loans (3.5% down) and VA loans (0% down for eligible veterans) are also available in Illinois.
First-Time Buyer Programs in Illinois
The Illinois Housing Development Authority (IHDA) offers Access Forgivable and Access Deferred down payment assistance loans through participating lenders. Check its current income limits, purchase-price limits and assistance amounts before you apply.
FHA loans are available nationwide and require only 3.5% down with a 580+ credit score — an option for first-time buyers in Illinois who have limited savings. USDA loans offer 0% down for eligible rural properties in Illinois. VA loans are available to qualified veterans and active-duty service members with no down payment required and no PMI.
If your down payment is below 20%, Private Mortgage Insurance (PMI) on the $270,000 example loan adds $135.00/month at a 0.6% annual rate. The Urban Institute puts typical PMI at roughly 0.46%–1.5% of the loan per year depending on credit score. PMI can be removed once your loan-to-value ratio reaches 80%, so extra payments accelerate the timeline to dropping PMI.
Last updated: October 2026. Estimates only — confirm figures with your lender and local tax office.
Frequently Asked Questions
What is the average mortgage rate in Illinois in 2026?
Illinois mortgage rates track national averages and change weekly. Check the Freddie Mac Primary Mortgage Market Survey for the current 30-year fixed average, then compare quotes from several lenders - your rate depends on credit score, down payment and loan type.
What is the average monthly mortgage payment in Illinois?
For a $255,000 home with 20% down at an example rate of 7%, the estimated PITI (principal, interest, taxes and insurance) is about $1,894 a month, assuming a 1.88% property tax rate and $1,650 a year for insurance. Your payment depends on your price, rate, local tax rate and insurance quote.
Do I need PMI in Illinois?
Yes — if your down payment is less than 20%, lenders in Illinois require Private Mortgage Insurance (PMI) on conventional loans. The Urban Institute puts typical PMI at about 0.46%–1.5% of the loan amount per year, depending on credit score. PMI is removed once you reach 20% equity.
What is the average home price in Illinois?
Home prices vary widely by city and county in Illinois, and medians change monthly. The $255,000 default in this calculator is an example, not a market median - enter the price of the home you are considering, or check current local sales data from your agent or the state Realtors association.
What is the property tax rate in Illinois?
Illinois’ effective property tax rate on owner-occupied homes is 1.88% according to the Tax Foundation, second-highest in the US - about $4,794 a year on a $255,000 home. The general homestead exemption lowers the equalized assessed value of a primary residence by up to $10,000 in Cook County and $6,000 in most other counties.
How much is the real estate transfer tax in Illinois?
Illinois charges $0.50 per $500 of value at the state level plus $0.25 per $500 at the county level - $450 on a $300,000 home - and the seller customarily pays both. Chicago adds $5.25 per $500, of which the buyer pays $3.75 ($2,250 on a $300,000 home) and the seller $1.50. Other home-rule cities may add their own tax.
What is the monthly payment on a $300,000 house in Illinois?
With 10% down and a 30-year fixed loan at 6.5%, principal and interest is about $1,707 a month. Adding 1.88% property tax ($470), $1,650 a year insurance ($138) and 0.6% PMI ($135) brings the total to about $2,449 a month.