Indiana Mortgage Calculator

Calculate your monthly mortgage payment in Indiana. Average home price: $220,000 · Property tax rate: 0.85% · Median household income: $58,235.

Calculate Your Indiana Mortgage Payment

Home Price ($)

Down Payment ($)

Interest Rate (%)

Loan Term (Years)

Property Tax Rate (%)

Annual Insurance ($)

HOA Monthly ($)

Loan Type

Indiana Housing Market Overview

$220,000

Avg Home Price

0.85%

Property Tax Rate

$1,500

Annual Insurance

6.75%

Avg Mortgage Rate

The average home price in Indiana is $220,000, with a property tax rate of 0.85%. With 20% down at 6.75%, your estimated monthly payment would be approximately $1,422/month including principal, interest, taxes, and insurance (PITI).

Indiana's median household income is $58,235, making the average home roughly 3.8x the median annual income. Financial advisors generally recommend a home price no more than 3-4x your annual income.

How Mortgage Payments Work in Indiana

Your monthly mortgage payment in Indiana consists of four components (PITI):

Principal: The portion that reduces your loan balance. Starts small and grows over time.
Interest: The cost of borrowing. At 6.75%, you'll pay significant interest in the early years.
Taxes: Indiana's property tax rate of 0.85% means approximately $156/month on the average home.
Insurance: Homeowners insurance in Indiana averages $1,500/year ($125/month).

If your down payment is less than 20%, you'll also pay Private Mortgage Insurance (PMI), typically 0.5-1% of the loan annually. FHA loans require mortgage insurance for the life of the loan.

Tips for Indiana Home Buyers

Get pre-approved: Know exactly how much you can afford before shopping in Indiana.
Compare rates: Even a 0.25% rate difference saves thousands over 30 years on a $220,000 home.
Consider property taxes: Indiana's 0.85% rate can vary significantly by county — research your target area.
Shop insurance: Indiana homeowners insurance averages $1,500/year, but rates vary. Get 3-5 quotes.
Budget for closing costs: Expect 2-5% of the purchase price ($4,400-$11,000) in closing costs.
Build an emergency fund: Set aside 3-6 months of mortgage payments ($4,267-$8,534) for emergencies.

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Frequently Asked Questions

What is the average mortgage payment in Indiana?

Based on the average home price of $220,000 with 20% down at 6.75%, the typical monthly payment in Indiana is approximately $1,422, including principal, interest, property taxes (0.85%), and homeowners insurance ($1,500/year).

What is the property tax rate in Indiana?

Indiana's effective property tax rate is approximately 0.85%. On a $220,000 home, that's about $1,870/year or $156/month. Property tax rates can vary by county within Indiana.

How much do I need for a down payment on a home in Indiana?

For a conventional loan, 20% down on the average Indiana home ($220,000) would be $44,000. FHA loans require as little as 3.5% ($7,700), and VA loans offer 0% down for eligible veterans. Lower down payments mean higher monthly payments and PMI.

What credit score do I need for a mortgage in Indiana?

Conventional loans typically require 620+, FHA loans 580+ (for 3.5% down) or 500+ (for 10% down), and VA loans have no minimum but lenders typically prefer 620+. Higher scores get better rates — a 760+ score in Indiana could save you 0.5-1% on your rate.

Should I get a 15-year or 30-year mortgage in Indiana?

A 30-year mortgage offers lower monthly payments but more total interest. A 15-year mortgage has higher payments but saves significantly on interest. On a $176,000 loan at 6.75%, you'd save approximately $89,100 in total interest with a 15-year term.

How much house can I afford in Indiana?

With Indiana's median household income of $58,235, following the 28% rule (housing should be ≤28% of gross income), you could afford approximately $1,359/month for housing. That supports a home price of roughly $203,822-$232,940 depending on rates, taxes, and insurance.