If you are planning to buy a Chicago area home, it pays to shop and compare your options! This helps you find the best value for your home buying dollar. Here are the 4 corners of home affordability, along with examples to get you started!
1. Financing costs. The mortgage costs will vary from one lender to another. Start by having your finances and credit score in the best possible shape!
As of August 1, 2026, the average mortgage interest rate was about 6.7% for a 30-year, fixed rate Conventional mortgage. Rates change daily with the financial markets, and your rate is subject to change until you lock it in.
- A good mortgage lender will explain your financing options.
- Determine the best mortgage type for your needs, so you can compare the same type of loan among different lenders.
- Apply for a mortgage pre-approval with at least 3 lenders, within the same week.
- Compare not just the rate, but also the fees! One lender might give you a slightly lower rate, but with higher fees. If you end up financing those fees, it isn’t much of a bargain.
- We can refer you to local, highly reputable lenders in the Chicago area!
2. Home price. Every home is unique. Location, home size, age, condition and amenities are going to be different from one property to another.
As of June 2026, the median home sale price in Chicago was $427,500. “Median” means half of the homes sold for less than this amount, and half of them sold for more.
- Before comparing prices, decide what you really need to have in a home – the absolute minimum requirements, the must-haves.
- Then decide what you absolutely do not want – things that would be deal-breakers.
- Once you have this figured out, you can see what your preferred home will cost in the local markets.
- You might have to cast your net a little wider depending on the market and price trends. Focus on like-kind comparisons.
3. Property taxes. Cook County uses a three-year property assessment cycle. Instead of reassessing the entire county each year, the county is split between three regions: the City of Chicago, the northern suburbs, and the south and western suburbs. Each region is reassessed once every three years. This leads to tax bill shock when property values rise year-over-year, and then the assessement value suddenly catches up, applying three years worth of increased value in one fell swoop.
However, most Chicago area counties have similar tax rates. Rural areas, like McHenry County, may have a higher tax rate, but lower home prices. Then you have a few suburban cities with overlapping taxing districts, which means higher tax bills for those residents. For these reasons, you should have an understanding of the tax bills before you buy the home.
- Residential property tax rates in the Chicago Metropolitan Area range from 1.84% to 2.50%.
- When comparing homes, check the tax bills on record for any exemptions. Would you qualify for the same exemptions? Are there any other exemptions available?
- Look at the current assessed value, the assessement cycle, and the tax rate. Know what you’re getting into.
4. Other costs of ownership. Preview and compare these as much as you can. They include:
- HOA dues (if appliable)
- Homeowner’s insurance premiums
- Monthly energy costs
- Estimated maintenance and repair costs (home age, condition and home size should be considered)
As Warren Buffett famously said, “Price is what you pay. Value is what you get.” Throughout the home search process, you’ll find trade-offs. Ultimately, you need to be happy with the home you choose!
StartingPoint Realty – serving Chicagoland since 2004!
StartingPoint Realty proudly serves home buyers and sellers throughout the entire Chicago area. We offer free, first-time home buyer seminars every month! We offer free home selling seminars too! Contact us for your free home buying or home selling consultation!
Ryan Gable Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@startingpointrealty.com
https://startingpointrealty.com/
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