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Delaware vs Illinois:
Mortgage & Housing Costs

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

MetricDelawareIllinois
Median Home Price$355K$270K
Property Tax Rate0.56%2.07%
Avg Closing Costs$12K$5K
Closing Cost %3.3%2.0%
Transfer Tax4%0.1%
Homeowners Insurance$1,300/yr$1,900/yr
First-Time Buyer Program
DSHA Homeownership Loan
Up to 5% Preferred Plus
IHDA 1stHomeIllinois
$7,500 forgivable loan
Verdict

Illinois wins 4 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 Delaware. 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.

Delaware
Home Price$355,000
Down Payment (10%)$35,500
Loan Amount$319,500
Monthly P&I$2,019
Monthly Property Tax$166
Monthly Insurance$108
Monthly PMI$133
Total PITI$2,427/mo
Annual property tax: $1,988
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 $166/month ($1,992/year) compared to Delaware, based on median home prices with identical loan terms.

Which State Is Right for You?

Illinois offers meaningfully lower home prices than Delaware, with median prices running 24% less ($85K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Delaware may find Illinois far more accessible, particularly when combined with local down payment assistance programs.

Property taxes are dramatically different: Delaware charges 0.56% while Illinois charges 2.07%, a gap of 1.51 percentage points. On the respective median homes, this means Illinois homeowners pay roughly $5,589 per year in property taxes versus $1,988 in Delaware. 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 Delaware at $1,300/year versus $1,900/year in Illinois, a difference of $600 annually. While not the largest cost factor, this adds up to over $6K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.

Closing costs are a one-time but significant expense. Delaware averages $12K in closing costs (3.3% of purchase price) while Illinois averages $5K (2%). Much of Delaware's higher costs come from its 4% transfer tax, which adds $14K 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. Delaware's DSHA Homeownership Loan provides Up to 5% Preferred Plus, 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: property taxes are the defining difference here. Illinois's 2.07% rate versus Delaware's 0.56% means Delaware homeowners save approximately $3,601 every year on taxes alone. Over a 30-year mortgage, that difference compounds into tens of thousands of dollars — making it the most important cost factor in this comparison.

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