What’s the average mortgage payment in Indiana?

According to data collected from Redfin and Rocket Mortgage, the average monthly mortgage payment in Indiana is around $1,701 before property taxes and insurance. Indiana remains one of the more affordable housing markets in the Midwest, thanks to a growing number of houses selling below the list price and comparatively low home prices overall. These factors help keep mortgage costs manageable for many households across the state.

Overview of the Indiana housing market

The median sale price of a home in Indiana is roughly $269,100, according to Redfin’s statewide housing data as of late 2025. Home prices vary widely across the state, with stronger price growth concentrated in Central Indiana, suburban Indianapolis communities like Carmel, and in North Indiana metros like South Bend.

Here’s a snapshot of recent median sale prices from Redfin across several Indiana cities:

Factors that influence mortgage payments in Indiana

Your monthly payment includes principal, interest, taxes, and insurance (PITI). Tools like the Rocket Mortgage® mortgage calculator can help you see how different factors affect your payment:

Home price and down payment

With Indiana’s median home price well below the national median, buyers often benefit from smaller required loan amounts. A 20% down payment on a median-priced Indiana house incurs a monthly payment of $1,568 before taxes and insurance.

A down payment below 20% typically triggers private mortgage insurance (PMI), adding to the monthly cost.

Mortgage rate

Your Indiana mortgage rate depends on several factors:

• Credit score and credit history
• Debt-to-income ratio (DTI)
• Loan type
• Down payment amount
• Home type and location
• Current market rates

Even small rate increases can significantly change how much you pay.

Loan term

Most homebuyers choose between a 30-year mortgage and a 15-year mortgage. The 30-year option offers slightly lower monthly payments, while the 15-year mortgage provides significant interest savings over the course of the loan.

Property taxes and insurance

Indiana’s average property tax rate is near the U.S. median at 0.74%, or $166, though rates vary by county. Home buyers must also factor in homeowners insurance, which averages out at about $302 a month in Indiana. Insurance rates depend on the age of the home, weather-related risks, and other local factors.

How do mortgage payments in Indiana compare to others in the region?

Although mortgage rates themselves don’t vary by state, monthly payments differ due to home-price trends, taxes, and insurance expenses. Here’s how Indiana compares with neighboring states:

Indiana remains one of the more affordable states in the Midwest region, with mortgage costs generally lower than Illinois and similar to Michigan.

Counties with the highest mortgage payments in Indiana

Using Q1 2025 median sale prices from the National Association of REALTORS®, the counties with the highest average mortgage payments in Indiana are as follows:

Counties with the lowest mortgage payments in Indiana

More rural regions tend to offer lower median home prices and, in turn, lower monthly payments

Here are the Indiana counties with the lowest monthly mortgage payments:

How to calculate your mortgage payment

Lenders use a standard formula that incorporates the loan amount, interest rate, and loan term. Home buyers can use a mortgage calculator to adjust these inputs and estimate how each factor can affect estimated monthly payments.

Indiana-specific mortgage resources

Indiana homebuyers can benefit from several statewide and local programs:

• Indiana Housing & Community Development Authority (IHCDA): Offers down-payment assistance, affordable loan programs, and first-time buyer incentives.
• Single Family Housing Direct Home Loans in Indiana: Helps low-income applicants obtain housing by temporarily reducing mortgage payments.

Average mortgage payment in Indiana FAQ

Where can I find the lowest mortgage payment in Indiana?

The lowest mortgage payments in Indiana can be found in rural Blackford County, where home owners pay an average of $660 per month.

Which county has the highest mortgage payment in Indiana?

With an average monthly payment of $2,790, Hamilton County is the most expensive area to buy a house in Indiana.

How much do you need to make to afford a home in Indiana?

Using the “28/36 rule,” households should aim to spend no more than 28% of their gross income on housing. With an average mortgage payment of $1,701, many Indiana households may need to earn around $6,000 per month (roughly $72,000 yearly), depending on taxes, insurance, and other monthly debts.

The bottom line: Multiple factors shape your mortgage payment in Indiana

Indiana’s relatively low home prices help keep mortgage payments manageable across much of the state. However, suburban Indianapolis counties and northern metro areas tend to see higher costs. Understanding local market conditions, monitoring mortgage rates, and evaluating assistance programs can help homebuyers determine what they can comfortably afford.

Whether you’re a first-time buyer or an experienced homeowner, get prequalified for a loan with Rocket Mortgage to understand your buying power and begin the process with confidence.

*Methodology: Average monthly mortgage payment in a region, calculated based on

average home purchase price for a fixed 30-year loan and a 52-week average interest rate of 6.68% from Freddie Mac as of August 2025.

This article is for informational purposes only and is not intended to provide financial, investment, or tax advice. You should consult a qualified financial or tax professional before making decisions regarding your retirement funds or mortgage.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Rocket Mortgage is not acting on behalf of FHA or HUD.

The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.