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Illinois vs Massachusetts:
Mortgage & Housing Costs

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

MetricIllinoisMassachusetts
Median Home Price$270K$595K
Property Tax Rate2.07%1.2%
Avg Closing Costs$5K$10K
Closing Cost %2.0%1.6%
Transfer Tax0.1%0.456%
Homeowners Insurance$1,900/yr$2,200/yr
First-Time Buyer Program
IHDA 1stHomeIllinois
$7,500 forgivable loan
MassHousing DPA
Up to $50,000 DPA 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 Massachusetts. 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
Massachusetts
Home Price$595,000
Down Payment (10%)$59,500
Loan Amount$535,500
Monthly P&I$3,385
Monthly Property Tax$595
Monthly Insurance$183
Monthly PMI$223
Total PITI$4,386/mo
Annual property tax: $7,140

Buying in Illinois saves you approximately $2,125/month ($25,500/year) compared to Massachusetts, 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 55% less than in Massachusetts — that's a difference of $325K on the median home. For buyers relocating from Massachusetts to Illinois, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Massachusetts home could fund a much larger down payment in Illinois, potentially eliminating PMI and reducing your monthly payment dramatically.

Massachusetts has a moderate property tax advantage at 1.2% versus Illinois's 2.07%. While the rate gap of 0.87% may seem small, it translates to an annual difference of approximately $1,551 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $12K in savings.

Closing costs are a one-time but significant expense. Massachusetts averages $10K in closing costs (1.6% 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. Illinois's IHDA 1stHomeIllinois provides $7,500 forgivable loan, while Massachusetts's MassHousing DPA offers Up to $50,000 DPA 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 $325K less than Massachusetts on average. That translates to roughly $2,125 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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