Mortgage Rates in Chicago, Illinois — March 2026
Updated March 2026 | Based on Chicago market data and regional lending conditions
Chicago is a major metropolitan area in Illinois with a population of 2,693,976. The current 30-year fixed mortgage rate in Chicago is 6.69%, which is 0.04% above the national average. With a median home price of $295,000 and a 20% down payment of $59,000, homebuyers can expect a monthly principal and interest payment of approximately $1,521.
Current Mortgage Rates in Chicago, IL
Below are the current average mortgage rates available in the Chicago area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.69% | 6.65% | +0.04% |
| 15-Year Fixed | 5.93% | 5.89% | +0.04% |
| 5/1 ARM | 6.19% | 6.15% | +0.04% |
| FHA | 6.29% | 6.25% | +0.04% |
| VA | 6.09% | 6.05% | +0.04% |
| Jumbo | 6.89% | 6.85% | +0.04% |
Chicago Housing Market Overview
The Chicago housing market offers relatively affordable housing compared to many major cities. The median household income in Chicago is $62,097, and the cost of living index is 107.3 (national average = 100). Based on the 28% affordability rule, you would need an income of approximately $87,000 to comfortably afford the median-priced home in Chicago, which exceeds the current median household income.
Monthly Payment Breakdown for Chicago
Based on the median home price of $295,000 with 20% down ($59,000), here is what you can expect to pay monthly in Chicago:
15-Year vs. 30-Year Mortgage in Chicago
Choosing a 15-year mortgage in Chicago at 5.93% instead of a 30-year at 6.69% would save you $190,620 in total interest over the life of the loan. However, your monthly payment would be $1,983 instead of $1,521 — an increase of $462 per month.
Calculate Your Chicago Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Chicago
What are the current mortgage rates in Chicago, IL?
As of March 2026, the average 30-year fixed mortgage rate in Chicago, Illinois is 6.69%, while the 15-year fixed rate is 5.93%. FHA loans average 6.29% and VA loans 6.09%. These rates are 0.04% above the national average of 6.65%.
How much is a monthly mortgage payment in Chicago?
Based on the median home price of $295,000 with 20% down, the estimated monthly mortgage payment in Chicago is $1,521 for principal and interest. Including property taxes of $509/month, the total monthly housing cost is approximately $2,030.
What income do I need to buy a home in Chicago?
Using the 28% rule, you would need an annual income of approximately $87,000 to afford the median-priced home in Chicago at $295,000. The median household income in Chicago is $62,097. This means most households would need to either earn above the median or consider homes below $295,000.
Is Chicago a good place to buy a home in 2026?
Chicago has a moderate cost of living with a cost of living index of 107.3 (national average = 100). The property tax rate in Illinois is 2.07%, which is above the national average. As a major city with 2,693,976 residents, Chicago offers diverse employment opportunities and amenities.
Mortgage Rates by ZIP Code in Chicago, IL
Explore mortgage rates for specific ZIP codes in the Chicago area. Rates can vary by neighborhood based on local property values and lending competition.
Mortgage Rates in Other Illinois Cities
Related Tools & Guides
Last updated: March 2026. Rates are approximate averages based on regional lending data for the Chicago, Illinois area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.