Illinois Mortgage Payment Calculator
🏛️ Illinois Tax & Cost Considerations
As a Chicago resident, your mortgage vs. investment decision should consider the city's unique market dynamics, local costs, and specific financial factors that differ from state averages.
💡 Key Tax Highlights:
- High property taxes at 2.27% affect total housing costs significantly
🎯 Payment Considerations:
- High property taxes (2.27%) significantly impact total housing costs
- Transfer taxes add 0.3% to transaction costs
- Special assessments for building improvements are common
- Seasonal market patterns affect optimal timing
🏙️ Chicago Payment Factors
Calculate your monthly mortgage payment in Chicago with accurate local costs including property taxes, insurance rates, and fees that vary significantly from national averages.
💰 Payment Factors:
- High property taxes (2.27%) significantly increase monthly payments
- Typical HOA fees of $350/month add to total housing costs
🏠 Local Costs:
- Parking costs: $180/month
- Property taxes (2.27%) among highest in nation
- Transfer taxes add 0.3% to purchase costs
- Special assessments common in older buildings
- Winter heating costs affect total housing expenses
Loan Details
Illinois Costs
Payment Breakdown
Understanding Mortgage Rates: APR vs Rate vs Points
🏷️ Interest Rate
The interest rate is the annual cost of borrowing money, expressed as a percentage. This is what you see advertised and what's used to calculate your monthly principal and interest payment.
📊 APR (Annual Percentage Rate)
APR includes the interest rate PLUS additional costs like origination fees, discount points, and some closing costs. It gives you the "true cost" of the loan.
💰 Discount Points
Points are upfront fees you pay to "buy down" your interest rate. Each point typically costs 1% of your loan amount and reduces your rate by ~0.25%.
💡 Should You Buy Points? The Math Behind the Decision
✅ Points Usually Make Sense When:
- You're staying long-term: Need 5-8+ years to break even
- You have extra cash: Better than investing in low-yield accounts
- You want payment certainty: Locked-in lower payment for life
- Tax benefits: Points may be tax-deductible (consult tax advisor)
⚠️ Common Gotchas & When to Avoid:
- Short-term ownership: You'll lose money if you move/refinance early
- Opportunity cost: That cash might earn more in investments (especially in bull markets)
- Cash flow: Don't deplete your emergency fund for points
- Rate environment: If rates are falling, you might refinance soon anyway
- Seller concessions: Sometimes sellers will pay points instead of lowering price
🧮 Quick Break-Even Formula:
Example: $3,000 in points saves $42/month → 71 months (6 years) to break even