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Current Indiana Mortgage and Refinance Rates

As of Wednesday, October 5, 2022, current rates in Indiana are 6.85% for a 30-year fixed and 6.08% for a 15-year fixed.

Bankrate has offers for Indiana mortgage and refinances from top partners that are well below the national average. Compare, apply, and start saving today.

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Current mortgage rates in Indiana

This year, mortgage rates have climbed to their highest levels since the Great Recession. Rates are close to 7 percent for a 30-year fixed interest mortgage in Indiana. The typical home price in Indiana is $222,799, well below the national median of $389,500. Indiana was the nation's the No. 6 growth state in America last year, so demand for housing in the state is increasing, and home prices are likely to climb.
 

Refinance rates in Indiana

Refinancing in Indiana may be challenging in the current rising-rate environment, but you could save thousands if you snag a lower rate. The tight housing market might be to your advantage, since the equity in your home could rise and make it easier for you to get your refinance application approved. Check out the Bankrate Mortgage Refinance Calculator to understand whether refinancing in Indiana would be a smart move for you.

How to find the best mortgage rate in Indiana for you

With rates rising, you'll need to put your best financial foot forward to secure a competitive mortgage rate when buying a home in Indiana. Improve your credit score by paying your bills on time and paying down or eliminating credit card debt. This can help cut down your debt-to-income (DTI) ratio. You'll also score a better rate if you make a larger down payment, especially 20 percent. There are still many mortgage options that allow a lower down payment, but you won't get the lowest possible rate and will likely need to pay for mortgage insurance.
 
Along with getting your finances in mortgage-shape, you could also save thousands by comparing offers from mortgage lenders in Indiana.
 

Mortgage options in Indiana

If you're a homebuyer in Indiana, begin by exploring these options:
Conventional loans are the most common type of mortgage. They come with either a fixed or adjustable rate, loan terms of anywhere from eight to 30 years and a down payment requirement as low as 3 percent, depending on program. These are generally best for borrowers who have a credit score of at least 620.
 
If you don't qualify for a conventional loan, your next option might be an FHA loan. These are similar to conventional loans in terms of structure and a low down payment requirement (3.5 percent), but allow for a credit score as low as 580.

First-time homebuyer programs in Indiana

Qualifying individuals and families in Indiana may have access to a variety of national first-time homebuyer programs and educational opportunities to help them navigate the homebuying process — but there are also first-time homebuyer programs available specifically to residents of Indiana.

First Place (FP) Program

Administered by the Indiana Housing & Community Development Authority (IHCDA), the First Place (FP) program is aimed at first-time homebuyers, and also veterans and repeat buyers purchasing in a targeted area. The FP program helps buyers with up to 6 percent in down payment assistance through a 30-year, fixed-rate FHA loan. The down payment assistance is an interest-free second mortgage, with no monthly mortgage payments, and forgivable if the homeowner stays in the home for nine full years from the date of closing.

To be eligible, borrowers must have:

  • A minimum credit score of 640 with a debt-to-income ratio (DTI) less than 45 percent; or
  • A minimum credit score of 680 with a debt-to-income ratio (DTI) greater than 45 percent, but less than 50 percent

There are also household income and property value limits based on the property’s location.

Helping to Own (H2O) Program

The Helping to Own (H2O) first-time homebuyer program offers borrowers up to 3.5 percent in down payment and closing costs assistance. The assistance, offered by the IHCDA, is a grant and no repayment is required, though applicants must meet the same minimum credit scores as the First Place program, and must not exceed household income limits specified by the family’s geographic location.

In addition to first-time homebuyers, veterans and those purchasing a property in a targeted area are also eligible.

Mortgage credit certificate (MCC)

Indiana first-time homebuyers can also save through a mortgage credit certificate (MCC), administered locally by the IHCDA, which converts a portion of their mortgage interest paid into a federal tax credit. The MCC helps reduce the taxes borrowers would otherwise have to pay. The maximum tax credit each year is $2,000.

The MCC is available to low- to moderate-income first-time homebuyers who work with an approved mortgage lender. Minimum credit scores, household income limits and purchase price limits apply.