Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Illinois and Louisiana. Updated for 2026.
Louisiana wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $195K and lower overall costs, Louisiana offers meaningful savings compared to Illinois. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Louisiana saves you approximately $698/month ($8,376/year) compared to Illinois, based on median home prices with identical loan terms.
Louisiana offers meaningfully lower home prices than Illinois, with median prices running 28% less ($75K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Illinois may find Louisiana far more accessible, particularly when combined with local down payment assistance programs.
Property taxes are dramatically different: Louisiana charges 0.55% while Illinois charges 2.07%, a gap of 1.52 percentage points. On the respective median homes, this means Illinois homeowners pay roughly $5,589 per year in property taxes versus $1,073 in Louisiana. 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 Louisiana ($3,500/year). That's an extra $1,600 per year — or $133/month — eating into your budget in Louisiana. Louisiana'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. Illinois's IHDA 1stHomeIllinois provides $7,500 forgivable loan, while Louisiana's LHC Mortgage Revenue Bond offers Up to $10,000 soft second 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.
The bottom line: property taxes are the defining difference here. Illinois's 2.07% rate versus Louisiana's 0.55% means Louisiana homeowners save approximately $4,517 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.