Mortgage Rates in Chicago, Illinois: 2026 Guide
30-year fixed: 7.32%. Median: $335,000.
Current Mortgage Rates in Chicago
| Loan Type | Rate | APR | Monthly* |
|---|---|---|---|
| 30-Year Fixed | 7.32% | 7.400% | $1,841/mo |
| 15-Year Fixed | 6.68% | 6.750% | $2,361/mo |
| 5/1 ARM | 6.46% | 6.810% | $1,687/mo |
Chicago Market Insights
Chicago is the third-largest US city with a housing market that rewards patience — prices are well below coastal metros while the rental market stays strong. The catch is property tax: Cook County effective rates run around 7.32%, among the highest in the country, which adds hundreds to a monthly payment. Neighborhoods from Lincoln Park to Bridgeport offer different trade-offs between price, schools, and commute.
FAQs
What is the average mortgage rate in Chicago?+
How much down payment is needed in Chicago?+
What are property taxes in Chicago?+
What a $335,000 Home Costs in Chicago
At Chicago's median home price of $335,000, a 20% down payment is $67,000. On a 30-year fixed loan at 7.32%, the monthly principal and interest payment works out to $1,841, and property taxes add roughly $536 per month at an effective rate of 1.92%. That puts the total PITI payment near $2,377 a month before homeowners insurance and HOA fees.
Keeping housing at or below 28% of gross income means a buyer in Chicago typically needs to earn about $101,871 a year to carry this payment comfortably.
Tax & Rate Context in Chicago
The effective property tax rate in Chicago is 1.92%, which works out to roughly $6,432 a year on a median-priced home.The 30-year fixed rate used here is the national Freddie Mac PMMS average of 7.32%. Local quotes move with credit score, down payment and lender, so compare at least three offers. Chicago has an estimated population of 2.7M, and demand in the local market affects how quickly homes move and how often sellers negotiate on price.