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Hawaii vs Illinois:
Mortgage & Housing Costs

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

MetricHawaiiIllinois
Median Home Price$830K$270K
Property Tax Rate0.28%2.07%
Avg Closing Costs$12K$5K
Closing Cost %1.5%2.0%
Transfer Tax0.2%0.1%
Homeowners Insurance$1,200/yr$1,900/yr
First-Time Buyer Program
HHFDC Hula Mae Program
Below-market rate mortgages
IHDA 1stHomeIllinois
$7,500 forgivable loan
Verdict

Hawaii 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.

Hawaii
Home Price$830,000
Down Payment (10%)$83,000
Loan Amount$747,000
Monthly P&I$4,722
Monthly Property Tax$194
Monthly Insurance$100
Monthly PMI$311
Total PITI$5,326/mo
Annual property tax: $2,324
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 $3,065/month ($36,780/year) compared to Hawaii, based on median home prices with identical loan terms.

Which State Is Right for You?

There's a dramatic price gap between these two states. Homes in Illinois cost 67% less than in Hawaii — that's a difference of $560K on the median home. For buyers relocating from Hawaii to Illinois, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Hawaii home could fund a much larger down payment in Illinois, potentially eliminating PMI and reducing your monthly payment dramatically.

Property taxes are dramatically different: Hawaii charges 0.28% while Illinois charges 2.07%, a gap of 1.79 percentage points. On the respective median homes, this means Illinois homeowners pay roughly $5,589 per year in property taxes versus $2,324 in Hawaii. 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 Hawaii at $1,200/year versus $1,900/year in Illinois, a difference of $700 annually. While not the largest cost factor, this adds up to over $7K 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. Hawaii averages $12K in closing costs (1.5% of purchase price) while Illinois averages $5K (2%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. 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. Hawaii's HHFDC Hula Mae Program provides Below-market rate mortgages, 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 $560K less than Hawaii on average. That translates to roughly $3,065 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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