M
MortgageMath
Free mortgage calculators for every state

Colorado vs Illinois:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Colorado and Illinois. Updated for 2026.

MetricColoradoIllinois
Median Home Price$520K$270K
Property Tax Rate0.51%2.07%
Avg Closing Costs$7K$5K
Closing Cost %1.4%2.0%
Transfer Tax0.01%0.1%
Homeowners Insurance$3,200/yr$1,900/yr
First-Time Buyer Program
CHFA Down Payment Assistance
Up to $25,000 second mortgage
IHDA 1stHomeIllinois
$7,500 forgivable loan
Verdict

Colorado and Illinois are evenly matched across major housing cost categories. Your decision may come down to other factors like job market, climate, or lifestyle preferences. Use the calculators below to model your specific scenario.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Colorado
Home Price$520,000
Down Payment (10%)$52,000
Loan Amount$468,000
Monthly P&I$2,958
Monthly Property Tax$221
Monthly Insurance$267
Monthly PMI$195
Total PITI$3,641/mo
Annual property tax: $2,652
Illinois
Home Price$270,000
Down Payment (10%)$27,000
Loan Amount$243,000
Monthly P&I$1,536
Monthly Property Tax$466
Monthly Insurance$158
Monthly PMI$101
Total PITI$2,261/mo
Annual property tax: $5,589

Buying in Illinois saves you approximately $1,380/month ($16,560/year) compared to Colorado, based on median home prices with identical loan terms.

Which State Is Right for You?

Illinois offers meaningfully lower home prices than Colorado, with median prices running 48% less ($250K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Colorado may find Illinois far more accessible, particularly when combined with local down payment assistance programs.

Property taxes are dramatically different: Colorado charges 0.51% while Illinois charges 2.07%, a gap of 1.56 percentage points. On the respective median homes, this means Illinois homeowners pay roughly $5,589 per year in property taxes versus $2,652 in Colorado. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.

Insurance costs favor Illinois at $1,900/year versus $3,200/year in Colorado, a difference of $1,300 annually. While not the largest cost factor, this adds up to over $13K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.

Both states offer down payment assistance for first-time buyers. Colorado's CHFA Down Payment Assistance provides Up to $25,000 second mortgage, while Illinois's IHDA 1stHomeIllinois offers $7,500 forgivable loan. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: Illinois homes cost $250K less than Colorado on average. That translates to roughly $1,380 less per month in total housing costs if you choose Illinois. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.

Compare Other States

Colorado vs AlaskaColorado vs ArizonaColorado vs CaliforniaIllinois vs AlabamaIllinois vs AlaskaIllinois vs Arkansas

Explore Each State

Run a Rent vs Buy analysis
Compare total costs of renting vs buying in Colorado or Illinois.
Rent vs Buy Calculator →
The First-Time Buyer Playbook
Free weekly guide: mortgage tips, market updates, and money-saving strategies. No spam.