What are average mortgage rates in Indiana in 2026?

Mortgage rates in Indiana generally track national averages. As of 2026, expect 30-year fixed rates from 5.5% to 7.5% for good credit borrowers. Use CalcDeck's Indiana mortgage calculator to model your payment at current rates.

How much are closing costs in Indiana?

Closing costs in Indiana typically range from 2% to 5% of purchase price, including lender fees, title insurance, and prepaid items. Use CalcDeck's Indiana mortgage calculator to include closing costs in your calculation.

What are property tax rates in Indiana?

Property tax rates in Indiana range from 0.3% to 2.5% of assessed value. CalcDeck's Indiana calculator includes property tax in your PITI payment.

What first-time homebuyer programs exist in Indiana?

Indiana offers down payment assistance, favorable-rate mortgages, and tax credits through state agencies. Use CalcDeck's Indiana calculator to see how programs affect your payment.

How do I use the CalcDeck Indiana mortgage calculator?

Enter home price, down payment, interest rate, and loan term. Adjust property tax and insurance to match Indiana averages. Get instant monthly payment, total interest, and amortization schedule.

Indiana Mortgage Calculator

Median home prices, property taxes, and monthly payment estimates for Indiana homeowners.

Indiana at a Glance

Median Home Price: $235,000
Property Tax Rate: 0.82%
Median Household Income: $66,334
Annual Property Tax: $1,927

Sources: Zillow ZHVI (2024), Tax Foundation (2023), US Census ACS (2023)

Monthly Mortgage Payment in Indiana

Based on the Indiana median home price of $235,000 at 6.7% interest (30-year fixed):

Payment Breakdown	20% Down	5% Down
Loan Amount	$188,000	$223,250
Principal and Interest	$1,213	$1,441
Property Tax (IN)	$161	$161
Homeowners Insurance	$125	$125
PMI	$0	$93
Total Monthly	$1,499	$1,819

How Much House Can You Afford in Indiana?

Using the 28/36 rule (housing costs under 28% of gross income):

With 20% down, you need ~$64,230/year to afford Indiana's median home
With 5% down, you need ~$77,965/year
Indiana's median household income is $66,334

Indiana insight: Indiana's property tax rate of 0.82% is near the national average.

Indiana Housing Market Overview

Indiana remains one of America's most affordable states for homebuyers. With a median home price of $235,000 and a median household income of $66,334, the price-to-income ratio is an attractive 3.5. Indianapolis's median sits at $255,000, Fort Wayne $195,000, and Evansville $175,000—well below national norms. Inventory is moderate at 3.4 months, providing buyers with negotiating room. The effective property tax rate of 0.82% is reasonable, costing roughly $1,927/year on a median home. Indiana has seen steady population growth in the Indianapolis metro (Carmel, Fishers, Noblesville), where prices have appreciated 5–7% annually. The state's low cost of living attracts remote workers from Chicago and coastal cities.

First-Time Homebuyer Programs in Indiana

The Indiana Housing and Community Development Authority (IHCDA) offers the Next Home program, providing 30-year fixed-rate FHA, VA, USDA, or conventional loans with down payment assistance up to 3.5% of the purchase price—capped at $8,225 on a $235,000 home. The First Home program targets first-time buyers with similar assistance and below-market rates. IHCDA also operates the Mortgage Credit Certificate (MCC) program, providing a federal tax credit of 20% (capped at $2,000/year) on mortgage interest. Local programs include Indianapolis's IndyHome program ($10,000 grants) and Fort Wayne's First-Time Homebuyer Assistance ($7,500). Income limits for state programs generally cap at $72,000 for a two-person household in Marion County and $64,000 in rural counties.

Tips for Homebuyers in Indiana

1) Indiana's 0.82% property tax means ~$161/month on a median home—very manageable compared to neighboring Illinois. 2) Tornado risk is moderate statewide; homes don't typically have basements in southern Indiana due to limestone bedrock—check for storm shelters. 3) Indianapolis has a strong seller's market in the $200,000–$300,000 range; homes sell in under 14 days with multiple offers. 4) Buy in fall/winter (October–February) for 3–5% price reductions and less competition. 5) Radon levels are high throughout Indiana; always include a radon test and budget $800–$1,500 for mitigation if needed. 6) Wells and septic systems are common in rural counties; a well flow test ($300) and septic inspection ($250) are essential outside municipal service areas.

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Indiana Mortgage FAQ

What is the median home price in Indiana?

The median home price in Indiana is approximately $235,000 as of 2024 (Zillow ZHVI). Your actual price will vary by city and neighborhood.

What is the property tax rate in Indiana?

The effective property tax rate in Indiana is approximately 0.82% (Tax Foundation). On a $235,000 home, that is about $1,927/year in property taxes.

How much income do I need to buy a home in Indiana?

Using the 28/36 rule with 20% down at 6.7%, you would need about $64,230/year to afford the median Indiana home at $235,000. With 5% down (including PMI), about $77,965.

What will my monthly mortgage payment be in Indiana?

On Indiana's median home price of $235,000 with 20% down at 6.7%, your total monthly payment (P and I plus tax plus insurance) is approximately $1,499. With 5% down including PMI, about $1,819.

Data sources: Zillow ZHVI typical home values (2024), Tax Foundation effective property tax rates (2023), US Census Bureau ACS median household income (2023). Mortgage rate assumption: 6.7% APR 30-year fixed. This is an estimate — use our calculator for personalized numbers.