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Illinois vs Maryland:
Mortgage & Housing Costs

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

MetricIllinoisMaryland
Median Home Price$270K$420K
Property Tax Rate2.07%1.09%
Avg Closing Costs$5K$11K
Closing Cost %2.0%2.5%
Transfer Tax0.1%1.5%
Homeowners Insurance$1,900/yr$1,700/yr
First-Time Buyer Program
IHDA 1stHomeIllinois
$7,500 forgivable loan
MD Mortgage Program
Up to $25,000 DPA
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 Maryland. 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.

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
Maryland
Home Price$420,000
Down Payment (10%)$42,000
Loan Amount$378,000
Monthly P&I$2,389
Monthly Property Tax$382
Monthly Insurance$142
Monthly PMI$158
Total PITI$3,070/mo
Annual property tax: $4,578

Buying in Illinois saves you approximately $809/month ($9,708/year) compared to Maryland, based on median home prices with identical loan terms.

Which State Is Right for You?

Illinois offers meaningfully lower home prices than Maryland, with median prices running 36% less ($150K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Maryland may find Illinois far more accessible, particularly when combined with local down payment assistance programs.

Maryland has a moderate property tax advantage at 1.09% versus Illinois's 2.07%. While the rate gap of 0.98% may seem small, it translates to an annual difference of approximately $1,011 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $8K in savings.

Closing costs are a one-time but significant expense. Maryland averages $11K in closing costs (2.5% of purchase price) while Illinois averages $5K (2%). Much of Maryland's higher costs come from its 1.5% transfer tax, which adds $6K 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. Illinois's IHDA 1stHomeIllinois provides $7,500 forgivable loan, while Maryland's MD Mortgage Program offers Up to $25,000 DPA. 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 $150K less than Maryland on average. That translates to roughly $809 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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