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Florida vs Illinois:
Mortgage & Housing Costs

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

MetricFloridaIllinois
Median Home Price$395K$270K
Property Tax Rate0.86%2.07%
Avg Closing Costs$7K$5K
Closing Cost %1.8%2.0%
Transfer Tax0.7%0.1%
Homeowners Insurance$4,200/yr$1,900/yr
First-Time Buyer Program
Florida Hometown Heroes
Up to 5% as 0% deferred loan
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 Florida. 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.

Florida
Home Price$395,000
Down Payment (10%)$39,500
Loan Amount$355,500
Monthly P&I$2,247
Monthly Property Tax$283
Monthly Insurance$350
Monthly PMI$148
Total PITI$3,028/mo
Annual property tax: $3,397
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 $767/month ($9,204/year) compared to Florida, based on median home prices with identical loan terms.

Which State Is Right for You?

Illinois offers meaningfully lower home prices than Florida, with median prices running 32% less ($125K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Florida may find Illinois far more accessible, particularly when combined with local down payment assistance programs.

Property taxes are dramatically different: Florida charges 0.86% while Illinois charges 2.07%, a gap of 1.21 percentage points. On the respective median homes, this means Illinois homeowners pay roughly $5,589 per year in property taxes versus $3,397 in Florida. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.

Homeowners insurance is significantly cheaper in Illinois ($1,900/year) compared to Florida ($4,200/year). That's an extra $2,300 per year — or $192/month — eating into your budget in Florida. Florida's high insurance costs are often driven by severe weather risks (hurricanes, tornadoes, or wildfires), which also affect availability of coverage.

Both states offer down payment assistance for first-time buyers. Florida's Florida Hometown Heroes provides Up to 5% as 0% deferred 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 $125K less than Florida on average. That translates to roughly $767 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.

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