Interest Rate
Average home price

Feeling like your new home might be found in Indiana? You need to check out mortgage rates before you commit. Be aware that your lender will be scrutinizing your finances, from how much money you make to how much of a down payment you have saved, plus your debt-to-income ratio and where your credit score falls.

Getting the best mortgage rate in Indiana hinges on preparation. Check your credit score and do any remediation needed, and grab all of your latest pay stubs and bank statements before applying for preapproval with a lender you can trust. Then you can start your house hunt in Indiana.

Here’s a quick look at current Indiana mortgage rates:

Loan Program Mortgage Rate APR* 1 Day Change
Conventional 30 year fixed 6.562% 6.635% -0.07%
Conventional 15 year fixed 5.88% 6.011% -0.1%
Conventional 10 year fixed 5.656% 5.895% Unchanged
Conventional 5 year ARM 6.615% 7.641% -0.05%
VA 30 year fixed 6.09% 6.368% Unchanged
VA 15 year fixed 5.51% 6.008% Unchanged
VA 5 year ARM 6.138% 7.033% Unchanged

Data source: ©Zillow, Inc. Use is subject to the Terms of Use

Buying a Home in Indiana

Indiana is often called “The Crossroads of America,” and for good reason: the Hoosier State is the embodiment of the Midwest and one of the coolest places in the nation.

Indiana has a population of more than 6.5 million people. More than one in eight live in the capital city of Indianapolis, and one in five live state’s six biggest cities:

  • Indianapolis (state capital)
  • Fort Wayne
  • Evansville
  • South Bend
  • Carmel
  • Bloomington

Buying a home in Indiana can be surprisingly inexpensive. Indiana ranks 44th in US homes for sale at average price, and 35th for homes over $1,000,000. Before you start attending open houses, it’s a good idea to get preapproved to learn your realistic budget parameters.

First-time Homebuyers

Programs administered by the Indiana Housing & Community Development Authority’s (IHCDA) are in place to help first-time homebuyers purchase homes in Indiana, and the most popular program offers down payment and closing costs assistance — two major pain points for FTHBs.

IHCDA First Place program provides an interest-free, payment-free, forgivable second mortgage of up to 6% of the home’s purchase price. As long as you stay on top of your responsibilities as a homeowner and live in the house for at least nine years, the loan will then be forgiven. If you sell or refinance before that time limit, you will have to repay the second mortgage.

Borrower requirements for the First Place program include:

  • A 640 minimum credit score with a debt-to-income ratio below 45% OR
  • A 680 minimum credit score with a debt-to-income ratio between 45% and 50% AND
  • Income within IDCHA limits ( $72,300 to $120,820)

Refinancing in Indiana

Lower Indiana mortgage rates may tempt you to refinance your home in the state. You can do any of the following:

  • Reduce costs over the loan term by lowering interest
  • Reduce your monthly payment by extending the loan term
  • Cash-out equity you’ve accumulated in your home
  • Ditch a PMI (private mortgage insurance) requirement

A streamlined refinance could be an option if you have the right loan type. Ask your lender for more information.


Buying a Home?

Each step-by-step guide is designed to shepherd you through a process from start to finish. Know what to expect and how to proceed, no matter where you are in your home buying journey.

1 The First Step in Buying a Home – Preapproval

What Is a Mortgage Preapproval? | How Much Will My Monthly Payment Be? | How Much Will My Down Payment Be? | How Long Does a Mortgage Preapproval Last? | What Is the Difference Between a Standard Preapproval and an Underwritten Preapproval?

Read More

3 How much money do I need?

How Can I Lower My Mortgage Payment? | How Can I Lower My Closing Costs? | When Do I Pay Out-Of-Pocket Costs? | What are Prepaid Items or Escrows? | What Will My Closing Costs Be?

Read More

4 The Basics of Mortgage

What Documents Need to be Updated During the Home Loan Process? | What Contingencies Do I Need? | How Important is the Closing Date? | Steps in the Loan Process | Understanding Common Mortgage Terms

Read More

5 Finding a Real Estate Agent

What Are the Top 6 Questions to Ask a Real Estate Agent? | Should I Use the Seller's Real Estate Agent? | Are Online Discount Realty Services a Good Idea? | How Much Does a Buyer's Real Estate Agent Cost? | Why Do I Need a Real Estate Agent to Buy a Home?

Read More
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