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Illinois vs North Carolina:
Mortgage & Housing Costs

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

MetricIllinoisNorth Carolina
Median Home Price$270K$340K
Property Tax Rate2.07%0.78%
Avg Closing Costs$5K$5K
Closing Cost %2.0%1.4%
Transfer Tax0.1%0.2%
Homeowners Insurance$1,900/yr$2,300/yr
First-Time Buyer Program
IHDA 1stHomeIllinois
$7,500 forgivable loan
NC Home Advantage Mortgage
Up to 5% DPA
Verdict

Illinois and North Carolina 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.

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
North Carolina
Home Price$340,000
Down Payment (10%)$34,000
Loan Amount$306,000
Monthly P&I$1,934
Monthly Property Tax$221
Monthly Insurance$192
Monthly PMI$128
Total PITI$2,474/mo
Annual property tax: $2,652

Buying in Illinois saves you approximately $213/month ($2,556/year) compared to North Carolina, based on median home prices with identical loan terms.

Which State Is Right for You?

Illinois offers meaningfully lower home prices than North Carolina, with median prices running 21% less ($70K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of North Carolina may find Illinois far more accessible, particularly when combined with local down payment assistance programs.

Property taxes are dramatically different: North Carolina charges 0.78% while Illinois charges 2.07%, a gap of 1.29 percentage points. On the respective median homes, this means Illinois homeowners pay roughly $5,589 per year in property taxes versus $2,652 in North Carolina. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.

Both states offer down payment assistance for first-time buyers. Illinois's IHDA 1stHomeIllinois provides $7,500 forgivable loan, while North Carolina's NC Home Advantage Mortgage offers Up to 5% 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: property taxes are the defining difference here. Illinois's 2.07% rate versus North Carolina's 0.78% means North Carolina homeowners save approximately $2,937 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.

Compare Other States

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