Use this free mortgage calculator to estimate your monthly mortgage payments and annual amortization.
Let's break down each part of the calculator so you can understand exactly what these numbers mean!
The total purchase price of the property. This represents the full market value of the home before any down payment or financing. For example, a typical home might cost $300,000.
The initial payment made when purchasing a home, typically 20% of the total purchase price. For a $300,000 home, a standard down payment would be $60,000. This amount is paid directly to the seller before financing the remaining balance.
This is what the bank charges you to borrow money. It's like a fee for letting you use their money to buy the house. For example, if the rate is 6%, and you borrow $240,000, you'll need to pay back more than just the $240,000.
This is how long you'll be paying for the house. Most people choose 30 years - that's a really long time, but it makes the monthly payments smaller and easier to handle.
This is when you'll start paying for the house. It's like the start date of a subscription - from this day forward, you'll need to make monthly payments.
This is money you pay to your local government each year for owning the house. It helps pay for things like schools, roads, and parks in your area. In Illinois, it's usually about 1.5-2.3% of your home's value each year.
This is like having a safety net for your house. If something bad happens (like a fire or storm damage), insurance helps pay to fix it. It usually costs about $1,920 per year for a $300,000 house in Illinois.
Some neighborhoods have a Homeowners Association (HOA) that maintains common areas (like pools or parks) and makes sure the neighborhood looks nice. If your house is in one of these areas, you'll pay a monthly fee to help cover these costs.
Pro Tip: Remember, buying a house is probably the biggest purchase you'll ever make! Take your time to understand these numbers and always ask questions if something isn't clear.
Now let's look at what all these numbers mean in your results! 🎯
This is how much money you'll need to pay every month - like a monthly allowance, but in reverse! It includes everything: your mortgage payment, taxes, insurance, and HOA fees if you have them. This is the number you need to make sure you can afford each month.
This is the actual amount of money you're borrowing from the bank to buy your house. It's the home price minus your down payment. Think of it as the base price you'll need to pay back, not counting any extra fees or interest.
This is the extra money you'll pay the bank for letting you borrow their money. It's like a rental fee for using their money! For example, if you borrow $240,000, you might end up paying an extra $200,000 just in interest over 30 years. Sounds crazy, right?
This is the grand total of everything you'll pay over the whole 30 years. It's like the final score in a video game - it adds up your principal (what you borrowed) plus all the interest you'll pay. This number can be pretty shocking, but remember it's spread out over 30 years!
This is just the house part of your monthly payment - it doesn't include taxes, insurance, or HOA fees. It's like if you were just paying back the bank loan by itself. This number helps you understand how much of your total monthly payment is going just to the house.
This is the day you'll make your very last payment and the house will be completely yours! It's like a countdown to freedom from your mortgage. If you start a 30-year mortgage today, this date will be 30 years from now.
This is like a super detailed payment plan that shows you exactly where every dollar goes for each payment you make. Imagine if you had a piggy bank that split your money into different sections each time you put money in - some goes to paying back what you borrowed (principal), and some goes to the bank's fee (interest). At first, most of your payment goes to interest, but over time, more and more goes to principal until you've paid off the whole loan!
Cool Fact: In the beginning, most of your monthly payment goes to paying interest, not the actual house! But don't worry - this is normal, and over time more of your payment will go toward paying for the house itself. It's like leveling up in a game - it gets better as you go! 🎮
This is the actual amount you borrowed from the lender. For example, if you buy a $300,000 home with a 20% down payment ($60,000), your principal would be $240,000.
The cost of borrowing money, expressed as a percentage of the loan amount. Interest rates vary based on market conditions, your credit score, and loan type.
Required when your down payment is less than 20%. This protects the lender if you default on the loan. Once you build 20% equity, you may be able to remove this cost.
A separate account that holds funds for property taxes, homeowner's insurance, and HOA dues (if applicable). Your lender collects and pays these expenses on your behalf.
For a 30-year mortgage, you'll make 360 total payments (30 years × 12 months = 360 payments). Each payment includes a portion of principal and interest, with early payments having a higher percentage of interest and later payments having a higher percentage of principal.
The maximum length of time to repay your loan. Common terms are:
Fixed Rate: Interest rate remains constant throughout the loan term, providing payment stability.
Adjustable Rate (ARM): Rate stays fixed initially, then adjusts periodically. Example: 5-year ARM has fixed rate for 5 years, then adjusts annually. Often starts with lower rates, ideal if you plan to move or refinance before first adjustment.
Conforming Loans: Meet guidelines set by Fannie Mae/Freddie Mac, including maximum loan amounts. Generally offer better rates and terms.
Non-Conforming Loans: Don't meet standard guidelines. Include jumbo loans (exceed conforming limits) and other specialized programs. Terms and eligibility vary by lender.
The Illinois housing market remains dynamic, with the median home value at $266,320, showing a 5.7% increase over the past year. Homes are moving quickly, typically going pending in just 21 days. The median sale price has reached $283,900, reflecting a robust 10.1% year-over-year growth. Currently, there are 31,919 homes for sale across Illinois.
The market shows moderate competition with 26.3% of homes selling above list price. The average sale-to-list price ratio is 98%, indicating strong but balanced negotiating conditions. About 20.2% of listings see price reductions, suggesting opportunities for buyers in certain areas. New inventory remains active with 8,710 newly listed homes as of January 2025.
Illinois maintains some of the highest property tax rates nationally, ranging from 1.5-2.3%. Homeowners insurance averages $1,920 annually (approximately 0.64% of home value), though costs vary by location and coverage. Some regions may require additional coverage for specific weather-related risks.
The Illinois Housing Development Authority (IHDA) offers various assistance programs for first-time homebuyers, including down payment assistance and favorable loan terms. With the current market conditions showing steady growth, these programs can be particularly valuable for new buyers entering the market.
While a 20% down payment helps you avoid private mortgage insurance (PMI), it's not always necessary. FHA loans accept as little as 3.5% down, and some conventional loans start at 3%. Consider your financial situation carefully - a larger down payment reduces monthly costs and total interest, but shouldn't deplete your emergency savings.
Credit scores play a crucial role in determining your mortgage rate. Excellent scores (740+) unlock the best rates and terms. Mid-range scores may face higher rates, while scores below 620 might limit you to FHA loans or require larger down payments. Consider improving your score before applying to potentially save thousands over your loan term.
Your monthly payment consists of several components (PITI): Principal (loan repayment), Interest (cost of borrowing), Property Taxes, and Insurance (homeowners + PMI if applicable). Additional costs may include HOA fees, utilities, and maintenance. Budget for all these expenses when planning your home purchase.
Fixed-rate mortgages offer stability with consistent payments throughout the loan term - ideal for long-term homeowners and in rising rate environments. Adjustable-rate mortgages (ARMs) start lower but can fluctuate after the initial period. ARMs might save money if you plan to move or refinance before the rate adjusts, but carry more risk long-term.
Expect 30-45 days from application to closing. The process includes: pre-approval (1-3 days), home appraisal (1-2 weeks), underwriting (1-2 weeks), and closing preparation (1 week). Speed up the process by preparing documents early, responding promptly to requests, and maintaining stable employment and finances during the application.
Our mortgage calculator helps Illinois residents estimate monthly payments and make informed home-buying decisions. All calculations are estimates and should be verified with a qualified lender.
This calculator provides estimates only. Actual loan terms and payments will vary based on your individual circumstances and current market rates. Always consult with qualified financial professionals before making decisions.
© 2025 Illinois Mortgage Calculator. All calculations are estimates.