Mortgage Rates in Oak Lawn, IllinoisMarch 2026

Updated March 2026 | Based on Oak Lawn market data and regional lending conditions

30-Year Fixed
6.73%
15-Year Fixed
5.97%
Median Home Price
$277,000
Est. Monthly Payment
$1,907

Oak Lawn is a growing city in Illinois with a population of 55,245. The current 30-year fixed mortgage rate in Oak Lawn is 6.73%, which is 0.08% above the national average. With a median home price of $277,000 and a 20% down payment of $55,400, homebuyers can expect a monthly principal and interest payment of approximately $1,434.

Current Mortgage Rates in Oak Lawn, IL

Below are the current average mortgage rates available in the Oak Lawn 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 TypeRateNational AvgDifference
30-Year Fixed6.73%6.65%+0.08%
15-Year Fixed5.97%5.89%+0.08%
5/1 ARM6.24%6.15%+0.09%
FHA6.49%6.25%+0.24%
VA6.24%6.05%+0.19%
Jumbo6.98%6.85%+0.13%

Oak Lawn Housing Market Overview

The Oak Lawn housing market offers relatively affordable housing compared to many major cities. The median household income in Oak Lawn is $59,400, and the cost of living index is 98.2 (national average = 100). Based on the 28% affordability rule, you would need an income of approximately $81,729 to comfortably afford the median-priced home in Oak Lawn, which exceeds the current median household income.

Population
55,245
Median Income
$59,400
Property Tax Rate
2.05%
Cost of Living
98.2
Down Payment (20%)
$55,400
Income Needed
$81,729

Monthly Payment Breakdown for Oak Lawn

Based on the median home price of $277,000 with 20% down ($55,400), here is what you can expect to pay monthly in Oak Lawn:

Principal & Interest (30-yr at 6.73%)$1,434
Property Tax$473
Estimated Insurance$69
Total Estimated Monthly$1,976

15-Year vs. 30-Year Mortgage in Oak Lawn

Choosing a 15-year mortgage in Oak Lawn at 5.97% instead of a 30-year at 6.73% would save you $180,360 in total interest over the life of the loan. However, your monthly payment would be $1,866 instead of $1,434 — an increase of $432 per month.

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Frequently Asked Questions About Mortgages in Oak Lawn

What are the current mortgage rates in Oak Lawn, IL?

As of March 2026, the average 30-year fixed mortgage rate in Oak Lawn, Illinois is 6.73%, while the 15-year fixed rate is 5.97%. FHA loans average 6.49% and VA loans 6.24%. These rates are 0.08% above the national average of 6.65%.

How much is a monthly mortgage payment in Oak Lawn?

Based on the median home price of $277,000 with 20% down, the estimated monthly mortgage payment in Oak Lawn is $1,434 for principal and interest. Including property taxes of $473/month, the total monthly housing cost is approximately $1,907.

What income do I need to buy a home in Oak Lawn?

Using the 28% rule, you would need an annual income of approximately $81,729 to afford the median-priced home in Oak Lawn at $277,000. The median household income in Oak Lawn is $59,400. This means most households would need to either earn above the median or consider homes below $277,000.

Is Oak Lawn a good place to buy a home in 2026?

Oak Lawn offers a below-average cost of living with a cost of living index of 98.2 (national average = 100). The property tax rate in Illinois is 2.05%, which is above the national average. Oak Lawn has a population of 55,245 and offers a balanced lifestyle.

Mortgage Rates in Other Illinois Cities

Chicago, IL
6.69% | $295,000
Naperville, IL
6.69% | $465,000
Rockford, IL
6.69% | $135,000
Joliet, IL
6.69% | $245,000
Springfield, IL
6.69% | $145,000

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Last updated: March 2026. Rates are approximate averages based on regional lending data for the Oak Lawn, Illinois area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.