Mortgage Calculator Indiana

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The most common loan terms are 30-year fixed-rate mortgages and 15-year fixed-rate mortgages. Depending on your financial situation, one term may be better for you than the other. With a 30-year fixed-rate mortgage, you have a lower monthly payment but you’ll pay more in interest over time. A 15-year fixed-rate mortgage has a higher monthly payment (because you’re paying off the loan over 15 years instead of 30 years), but you can save thousands in interest over the life of the loan.

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How To Use The Indiana Mortgage Calculator

Overview of Indiana housing market

Indiana’s housing market remains relatively affordable compared to national averages, with a median home price of around $255,000 as of early 2025. While inventory has slightly increased, demand continues to outpace supply, keeping competition high.

Mortgage rates near 7% have moderated buyer activity, but steady job growth and a low cost of living keep Indiana attractive to homebuyers. Property taxes are also modest, contributing to the state's overall housing affordability.

Average property tax by county in Indiana

Indiana continues to offer some of the lowest property tax rates in the U.S., with an average effective rate of 0.74% in 2023, compared to 0.77% in 2022. Despite the low rate, property tax bills increased by over 20% between 2022 and 2024, driven primarily by rising home values.

In response, the state introduced tax relief measures in 2025, including expanded deductions and credits. These changes are expected to slow the pace of tax increases in upcoming years. Property tax rates differ by location. Local rates should be verified when estimating tax costs.

Home Insurance in Indiana

Homeowners insurance premiums in Indiana vary based on factors like property value, location, and coverage type. In previous years, average premiums were around $1,058 annually for $300,000 in dwelling coverage, with higher rates in cities like Indianapolis ($1,968) and South Bend ($1,681).

However, recent data shows that insurance costs have risen. As of 2025, the average annual premium in Indiana ranges between $2,384 and $2,495, depending on the provider and coverage level. These increases reflect broader market changes, including inflation, weather risks, and construction costs.

Important Economic Factors Affecting Indiana

Understanding key economic factors is essential when buying a home or applying for a mortgage in Indiana. The state’s job market, housing affordability, and financial trends all influence real estate decisions. Below are the most relevant economic conditions impacting Indiana’s housing market.

• Affordable Housing Options

• Mortgage Affordability

• Employment Trends and Wage Growth

• Housing Demand and Inventory

• Property Taxes and Homeowners Insurance

• Infrastructure Investments

• Cost of Living

Mortgage Laws and Regulations in Indiana

Indiana's mortgage laws aim to protect both homebuyers and lenders by ensuring fairness, transparency, and legal safeguards throughout the lending and home-buying process. Below is a summary of key mortgage-related regulations in the state:

• Truth in Lending Act (TILA): Mandates clear disclosure of loan terms, including interest rates and fees, ensuring borrowers are fully informed before committing.
• Pre-Foreclosure Notice: Lenders must provide homeowners with a written notice at least 30 days before initiating foreclosure proceedings, offering time to seek alternatives.
• Judicial Foreclosure Process: Indiana requires foreclosures to proceed through the court system, allowing homeowners the opportunity to contest and seek resolutions.
• Homestead Deduction: Eligible homeowners can apply for a property tax deduction on their primary residence, reducing annual tax liabilities.
• Anti-Discrimination Laws: State and federal regulations prohibit discrimination in mortgage lending based on race, gender, religion, or other protected characteristics.

Investment Opportunities in Indiana

Indiana offers a diverse range of investment opportunities across various sectors:

• Real Estate
• Agricultural Land
• Renewable Energy
• Advanced Manufacturing
• Technology and Innovation

Utilize our Indiana Mortgage Calculator to estimate potential returns on property investments and make informed financial decisions.

• Real Estate: Cities like Indianapolis, Fort Wayne, and Lafayette are experiencing steady growth, making them attractive for residential and commercial property investments.
• Agricultural Land: With fertile soil and a strong farming heritage, investing in Indiana's agricultural land provides long-term value and potential income through leasing or crop production.
• Renewable Energy: Indiana is expanding its renewable energy sector, with significant investments in wind and solar projects, offering opportunities for investors interested in sustainable energy developments.
• Advanced Manufacturing: The state's robust manufacturing base, particularly in automotive and aerospace industries, presents investment prospects in modernized facilities and supply chains.
• Technology and Innovation: Indiana's growing tech ecosystem, supported by initiatives like the LEAP Innovation District, is attracting startups and venture capital, offering prospects for investors in emerging technologies.

Indiana Home Prices

The state continues to offer competitive property values compared to national averages, making it an attractive option for first-time buyers, families, and investors alike. Here’s an overview of recent housing price trends in Indiana.