Indiana mortgage and refinance rates

Current mortgage rates in Indiana

As of Thursday, December 4, 2025, current interest rates in Indiana are 6.19 percent for a 30-year fixed mortgage and 5.38 percent for a 15-year fixed mortgage.

Mortgage rates in Indiana — and nationally — have been above 6 percent, and often above 7 percent, for most of the last two years. However, while rates started the year around 7 percent, they've decreased in recent months due to concerns about the economy and inflation. While experts expect rates to decrease a bit heading into next year, they say rates are still likely to remain above 6 percent. 

Refinance rates in Indiana

Mortgage refinance rates have fallen a bit since recent highs. If you took out your mortgage when average rates for a purchase mortgage neared 8 percent, it may make sense to refinance now. However, if you have one of the 14 million mortgages that was refinanced during the pandemic, according to the Federal Reserve Bank of New York, it’s unlikely that refinancing again will save you money anytime soon.

That said, if you have a big expense coming up and you’d like to use equity to pay for it, rising home values may be on your side. About 48 million U.S. homeowners have access to home equity, with an average of $213,000 in equity available to be tapped, according to the August 2025 ICE Mortgage Monitor report. With a cash-out refinance, you could take advantage of your home equity to further your financial goals.

National mortgage rates by loan type

Indiana housing market statistics and trends

While the median sales price for a home in Indiana is rising, it's still well below the national median. And with an increasing number of homes for sale — and an increasing number of homes dropping in price — the state is a relatively welcoming place for first-time buyers.

• Median home sales price, August 2025: $260,000
• Median home value, August 2025: $251,050
• Median down payment, August 2025: $45,250
• Median days on market, September 2025: 33
• Percentage of homes sold above list price, September 2025: 18.5 percent
• Percentage of homes with price drops, September 2025: 40.9 percent
• Homeownership rate, Q2 2025: 73.4 percent

Sources: ATTOM, Redfin, U.S. Census Bureau

Mortgage options in Indiana

If you're looking to buy a home in Indiana, here are some of your mortgage options: 

• Indiana conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income ratio (DTI) of no more than 45 percent (some lenders may make exceptions up to 50 percent, while other lenders require a DTI ratio of 36 percent or less). If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums as well.
• Indiana FHA loans: If your credit is too low for a conventional loan, you might consider a loan insured by the Federal Housing Administration (FHA). You can qualify for an FHA loan with a 3.5 percent down payment if you have a credit score as low as 580, or if you have a score as low as 500, you could qualify to make a 10 percent down payment. 
• Indiana VA loans: If you’re a veteran, active-duty member of the military or a surviving spouse, you may qualify for a mortgage from the Department of Veterans Affairs (VA). VA loans typically don’t require a down payment, and you won’t have to pay for mortgage insurance, but you will have to pay a funding fee.
• Indiana USDA loans: If you're home-shopping in a rural part of Indiana, a loan guaranteed by the U.S. Department of Agriculture (USDA) may be a good fit. Like VA loans, USDA loans don’t require a down payment, but you’ll need to purchase a home in a designated rural area and meet that area’s income limits.

First-time homebuyer programs in Indiana

Qualifying individuals and families in Indiana can get help with the costs of homebuying from national first-time homebuyer programs, as well as state-based aid. Many of these programs are offered through the Indiana Housing and Community Development Authority:

• IHCDA Step Down: The Step Down program is a 30-year, interest-only mortgage that can be either FHA or conventional. It’s available to first-time buyers or repeat buyers looking at homes in targeted areas. 
• IHCDA First Step: If you qualify for Step Down, you may also qualify for First Step, which offers up to 5 percent of your home’s purchase price in down-payment assistance. The assistance is a loan that you’ll have to repay when you sell, refinance or pay off the home.
• IHCDA Next Home: If you don’t qualify for Step Down and First Step, you may still be eligible for up to 3.5 percent of your home’s purchase price in down-payment assistance through Next Home. 

How to find the best mortgage rate in Indiana for you

Additional Indiana mortgage resources

• Closing costs in Indiana: Learn who pays for what when sealing the deal. 
• Indiana loan limits by county: Learn how much you can borrow with a conventional or FHA loan throughout the state.
• Best homeowners insurance in Indiana: Compare policies from a variety of providers.