Current Indiana Mortgage and Refinance Rates

Written by

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.

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money.

Current mortgage rates in Indiana
How to find the best mortgage rate in Indiana for you
Mortgage options in Indiana
First-time homebuyer programs in Indiana

About our Mortgage Rate Tables: The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our "Advertisers"). Other lenders' terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a "Next" button that can be used to click-through to the Advertiser's own website or a phone number for the Advertiser.

Availability of Advertised Terms: Each Advertiser is responsible for the accuracy and availability of its own advertised terms. Bankrate cannot guaranty the accuracy or availability of any loan term shown above. However, Bankrate attempts to verify the accuracy and availability of the advertised terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. Click here for rate criteria by loan product.

Loan Terms for Bankrate.com Customers: Advertisers may have different loan terms on their own website from those advertised through Bankrate.com. To receive the Bankrate.com rate, you must identify yourself to the Advertiser as a Bankrate.com customer. This will typically be done by phone so you should look for the Advertisers phone number when you click-through to their website. In addition, credit unions may require membership.

Loans Above $548,250 May Have Different Loan Terms: If you are seeking a loan for more than $548,250, lenders in certain locations may be able to provide terms that are different from those shown in the table above. You should confirm your terms with the lender for your requested loan amount.

Taxes and Insurance Excluded from Loan Terms: The loan terms (APR and Payment examples) shown above do not include amounts for taxes or insurance premiums. Your monthly payment amount will be greater if taxes and insurance premiums are included.

Consumer Satisfaction: If you have used Bankrate.com and have not received the advertised loan terms or otherwise been dissatisfied with your experience with any Advertiser, we want to hear from you. Please click here to provide your comments to Bankrate Quality Control.

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.

Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily ("overnight averages") and the other weekly ("Bankrate Monitor averages").

For Bankrate's overnight averages, APRs and rates are based on no existing relationship or automatic payments. To determine the Bankrate Monitor mortgage rate averages, Bankrate collects APRs and rates from the 10 largest banks and thrifts in 10 large U.S. markets based on no existing relationship or automatic payments.

Our advertisers are leaders in the marketplace, and they compensate us in exchange for placement of their products or services when you click on certain links posted on our site. This allows us to bring you, at no charge, quality content, competitive rates and useful tools.

Learn more about Bankrate's rate averages, editorial guidelines and how we make money.

Mortgage options in Indiana

If you're a homebuyer in Indiana, begin by exploring these options:

Conventional loans
FHA loans
VA loans or USDA loans (only available to borrowers who have served in the military or buying in rural areas, respectively)

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.