Mortgage Rates in Peoria, Illinois — March 2026
Updated March 2026 | Based on Peoria market data and regional lending conditions
Peoria is a growing city in Illinois with a population of 113,150. The current 30-year fixed mortgage rate in Peoria is 6.69%, which is 0.04% above the national average. With a median home price of $115,000 and a 20% down payment of $23,000, homebuyers can expect a monthly principal and interest payment of approximately $593.
Current Mortgage Rates in Peoria, IL
Below are the current average mortgage rates available in the Peoria 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% |
Peoria Housing Market Overview
The Peoria housing market offers relatively affordable housing compared to many major cities. The median household income in Peoria is $45,250, and the cost of living index is 83.5 (national average = 100). Based on the 28% affordability rule, the median income in Peoria is sufficient to afford the median-priced home.
Monthly Payment Breakdown for Peoria
Based on the median home price of $115,000 with 20% down ($23,000), here is what you can expect to pay monthly in Peoria:
15-Year vs. 30-Year Mortgage in Peoria
Choosing a 15-year mortgage in Peoria at 5.93% instead of a 30-year at 6.69% would save you $74,340 in total interest over the life of the loan. However, your monthly payment would be $773 instead of $593 — an increase of $180 per month.
Calculate Your Peoria 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 Peoria
What are the current mortgage rates in Peoria, IL?
As of March 2026, the average 30-year fixed mortgage rate in Peoria, 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 Peoria?
Based on the median home price of $115,000 with 20% down, the estimated monthly mortgage payment in Peoria is $593 for principal and interest. Including property taxes of $198/month, the total monthly housing cost is approximately $791.
What income do I need to buy a home in Peoria?
Using the 28% rule, you would need an annual income of approximately $33,900 to afford the median-priced home in Peoria at $115,000. The median household income in Peoria is $45,250. The median income is currently sufficient to meet this threshold.
Is Peoria a good place to buy a home in 2026?
Peoria offers a below-average cost of living with a cost of living index of 83.5 (national average = 100). The property tax rate in Illinois is 2.07%, which is above the national average. Peoria has a population of 113,150 and offers a very affordable lifestyle.
Mortgage Rates in Other Illinois Cities
Related Tools & Guides
Last updated: March 2026. Rates are approximate averages based on regional lending data for the Peoria, Illinois area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.