Mortgage Calculator in Indiana

Calculate your monthly mortgage payment in Indiana using the 2026 median home price of $273K and current local rates. Adjust the inputs below. Formula shown, sources cited — no account required.

Affordability is one of this state's most consistent selling points, with a median home price of $273,000 sitting well below national levels. Property taxes average 0.85%, which on the median home amounts to roughly $2,321 per year — a manageable carrying cost that keeps monthly payments predictable. Closing costs average 1.5%, adding about $4,095 at settlement for the median-priced home. First-time buyers can access the IHCDA Next Home and MY HOME programs, both of which offer down-payment assistance and competitive interest rates for qualified buyers. A 10% down payment here means bringing $27,300 in cash, making entry into homeownership more achievable than in most major metro markets. The housing market remains relatively balanced, with strong inventory in smaller cities and growing competition in Indianapolis and Carmel. Buyers who act quickly with a strong pre-approval tend to fare well even in competitive pockets. Use the mortgage calculator to model your total monthly payment including taxes and insurance, not just the principal-and-interest portion.

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Indiana's average mortgage rate of 6.51% and median home price of $273K produce a monthly P&I of approximately $1,555 before taxes and insurance.

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Indiana Housing Market at a Glance (2026)

$273K

Median Home Price

6.51%

Avg Mortgage Rate

0.85%

Property Tax Rate

10%

Typical Down Payment

Buying a Home in Indiana: Costs to Know

Average closing costs1.5% of purchase price

On a $273K home, closing costs â‰ˆ$4,095

Median household income$71,959/yr

State income tax (top rate)2.95%

First-Time Buyer Programs in Indiana

Indiana offers state-sponsored programs that can reduce your down payment or closing costs:

✓IHCDA Next Home
✓MY HOME Program

How Mortgage Payments Work in Indiana

A standard mortgage payment in Indiana is calculated using the amortization formula:M = P[r(1+r)^n] / [(1+r)^n - 1]

Where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. On a $273K home in Indiana with a 10% down payment at 6.51% over 30 years, your principal and interest payment comes to approximately $1,555/month— not including property taxes or homeowner's insurance.

Indiana's property tax rate of 0.85% adds roughly $193/month to your total housing cost on a $273K home. This rate is near the national average of ~1.1%.

Indiana vs. National Average

Metric	Indiana	National Avg
Median Home Price	$273,000	$420,000
Property Tax Rate	0.85%	1.07%
Avg Mortgage Rate	6.51%	6.85%
Cost of Living Index	90.7	100

Questions You Might Ask — Mortgage Calculator in Indiana

What is the average mortgage payment in Indiana?

Based on the median home price of $273K in Indiana with a 10% down payment and 6.51% rate (30-year fixed), the estimated monthly principal and interest payment is approximately $1,555. Adding property taxes (~$193/mo) and homeowner's insurance, total PITI is typically $1,898–$1,998/month.

What is the property tax rate in Indiana?

Indiana has an average effective property tax rate of 0.85%. On the median home price of $273K, that equals roughly $2,321 per year — or $193 added to your monthly mortgage payment. This is near the national average of ~1.1%.

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

The typical down payment in Indiana is 10% — about $27,300 on the median $273K home. Conventional loans require as little as 3% down; FHA loans allow 3.5%. First-time buyers may also qualify for assistance through programs like IHCDA Next Home.

What are closing costs in Indiana?

Average closing costs in Indiana are approximately 1.5% of the purchase price — about $4,095 on the median $273K home. Closing costs include lender origination fees, title insurance, escrow, prepaid interest, and government recording fees.

What income do I need to afford the median home in Indiana?

To afford the $273K median home in Indiana under the 28% housing-cost rule, you need a gross monthly income of at least $6,779 — roughly $81K/year. The median household income in Indiana is $71,959.

Data Sources & Methodology

State data sourced from the National Association of Realtors (median home prices), Tax Foundation (property tax rates, income tax), Freddie Mac PMMS (mortgage rates), ATTOM Data Solutions (closing costs), and U.S. Census Bureau ACS (household income). Last updated 2026.