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Connecticut vs Illinois:
Mortgage & Housing Costs

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

MetricConnecticutIllinois
Median Home Price$405K$270K
Property Tax Rate2.15%2.07%
Avg Closing Costs$9K$5K
Closing Cost %2.1%2.0%
Transfer Tax1.25%0.1%
Homeowners Insurance$2,100/yr$1,900/yr
First-Time Buyer Program
CHFA Homebuyer Mortgage
Up to $20,000 DAP loan
IHDA 1stHomeIllinois
$7,500 forgivable loan
Verdict

Illinois wins 6 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $270K and lower overall costs, Illinois offers meaningful savings compared to Connecticut. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

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

Connecticut
Home Price$405,000
Down Payment (10%)$40,500
Loan Amount$364,500
Monthly P&I$2,304
Monthly Property Tax$726
Monthly Insurance$175
Monthly PMI$152
Total PITI$3,356/mo
Annual property tax: $8,708
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 $1,095/month ($13,140/year) compared to Connecticut, based on median home prices with identical loan terms.

Which State Is Right for You?

Illinois offers meaningfully lower home prices than Connecticut, with median prices running 33% less ($135K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Connecticut may find Illinois far more accessible, particularly when combined with local down payment assistance programs.

Property tax rates are similar in both states (Connecticut: 2.15%, Illinois: 2.07%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.

Closing costs are a one-time but significant expense. Connecticut averages $9K in closing costs (2.1% of purchase price) while Illinois averages $5K (2%). Much of Connecticut's higher costs come from its 1.25% transfer tax, which adds $5K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.

Both states offer down payment assistance for first-time buyers. Connecticut's CHFA Homebuyer Mortgage provides Up to $20,000 DAP loan, 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 $135K less than Connecticut on average. That translates to roughly $1,095 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

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