Mortgage Calculator Indiana 2026: Payment, PMI & Tax Caps
This mortgage calculator for Indiana estimates your full monthly payment — principal & interest, property tax, homeowners insurance and PMI — and explains Indiana’s 1% homestead property tax cap. Enter your own rate; everything is calculated privately in your browser.
A mortgage calculator for Indiana estimates the full monthly cost of a Indiana home loan: principal and interest from standard amortization, plus property tax, homeowners insurance and private mortgage insurance (PMI) when you put down less than 20%. Indiana has no real estate transfer tax, so closing costs are mainly lender, title and escrow charges.
How the Mortgage Calculator Indiana Formula Works (Worked Example)
Principal and interest use the standard amortization formula M = P × r(1+r)n ÷ ((1+r)n − 1), where P is the loan amount, r the monthly rate (annual rate ÷ 12) and n the number of payments. Property tax is the home price × your local rate ÷ 12, insurance is your annual premium ÷ 12, and PMI is the loan amount × your PMI rate ÷ 12. Example: a $300,000 Indiana home, 10% down, 30-year fixed at a user-entered 6.5% (click Load Example above to reproduce it).
| Item | Inputs | Monthly |
|---|---|---|
| Principal & interest | $270,000 loan, 6.5%, 360 payments | $1,706.58 |
| Property tax | 0.76% of $300,000 ($2,280/yr) | $190.00 |
| Homeowners insurance | $1,350/yr (example — use your quote) | $112.50 |
| PMI | 0.6% of $270,000 ($1,620/yr) | $135.00 |
| Total monthly payment | $2,144.08 | |
| Transfer tax (one-time) | Indiana has no real estate transfer tax | $0.00 |
Over 30 years this loan pays about $344,370 in interest. Your rate is an input, not an assumption — check the current weekly national average in Freddie Mac’s Primary Mortgage Market Survey and compare lender Loan Estimates.
Indiana Property Tax Rate and the 1% Homestead Cap
Indiana’s effective property tax rate on owner-occupied homes is 0.76% of home value, according to the Tax Foundation (2026 edition, based on Census American Community Survey data). Indiana also caps property tax bills in its constitution (Article 10, Section 1). According to the Department of Local Government Finance, the tax on a homestead cannot exceed 1% of its gross assessed value, other residential property (rentals, second homes) is capped at 2%, and non-residential property at 3%. On a $300,000 assessed homestead, the cap means a maximum of $3,000 a year before voter-approved levies outside the cap. The cap only applies to a homestead if the homestead deduction is on file with your county auditor, so confirm it is filed in your name after closing.
| Property tax rate | Annual tax on $300,000 | Added to monthly payment |
|---|---|---|
| 0.53% | $1,590 | $132.50 |
| 0.76% (state effective rate) | $2,280 | $190.00 |
| 1.06% | $3,180 | $265.00 |
Indiana Closing Costs: No Transfer Tax
Indiana does not charge a state or local real estate transfer tax (verified in Bankrate’s state transfer tax list), so you will not see one on an Indiana Loan Estimate or Closing Disclosure. Most closing costs are set by your lender and title company.
| Indiana item | Amount | Usually paid by |
|---|---|---|
| Real estate transfer tax | None in Indiana | — |
| Escrow deposits for tax and insurance | Set by your lender — see your Loan Estimate | Buyer |
| Recording, lender, appraisal and title charges | Vary by county, lender and title company — compare Loan Estimates | Negotiable |
Some costs are negotiable, and sellers sometimes cover part of a buyer’s closing costs as a concession.
How Indiana Mortgage Rates Affect Your Payment
Rates in Indiana follow national mortgage markets and vary by lender, credit score, down payment and loan type. On a $235,000 home with 20% down, an example rate of 6.9% produces a monthly principal and interest payment of approximately $1,238. A 0.25-point rate increase adds roughly $32 to that payment, so shopping multiple lenders can save thousands over the life of the loan.
Adjustable-rate mortgages (ARMs) often start lower but carry rate-reset risk, which is why many Indiana homebuyers choose 30-year fixed loans for payment predictability. FHA loans (3.5% down) and VA loans (0% down for eligible veterans) are also available in Indiana.
First-Time Buyer Programs in Indiana
The Indiana Housing and Community Development Authority (IHCDA) offers first-time buyer programs such as Next Home with down payment assistance through participating lenders. Check its current income limits, purchase-price limits and assistance amounts before you apply.
FHA loans are available nationwide and require only 3.5% down with a 580+ credit score — an option for first-time buyers in Indiana who have limited savings. USDA loans offer 0% down for eligible rural properties in Indiana. VA loans are available to qualified veterans and active-duty service members with no down payment required and no PMI.
If your down payment is below 20%, Private Mortgage Insurance (PMI) on the $270,000 example loan adds $135.00/month at a 0.6% annual rate. The Urban Institute puts typical PMI at roughly 0.46%–1.5% of the loan per year depending on credit score. PMI can be removed once your loan-to-value ratio reaches 80%, so extra payments accelerate the timeline to dropping PMI.
Last updated: October 2026. Estimates only — confirm figures with your lender and local tax office.
Frequently Asked Questions
What is the average mortgage rate in Indiana in 2026?
Indiana mortgage rates track national averages and change weekly. Check the Freddie Mac Primary Mortgage Market Survey for the current 30-year fixed average, then compare quotes from several lenders - your rate depends on credit score, down payment and loan type.
What is the average monthly mortgage payment in Indiana?
For a $235,000 home with 20% down at an example rate of 6.9%, the estimated PITI (principal, interest, taxes and insurance) is about $1,500 a month, assuming a 0.76% property tax rate and $1,350 a year for insurance. Your payment depends on your price, rate, local tax rate and insurance quote.
Do I need PMI in Indiana?
Yes — if your down payment is less than 20%, lenders in Indiana require Private Mortgage Insurance (PMI) on conventional loans. The Urban Institute puts typical PMI at about 0.46%–1.5% of the loan amount per year, depending on credit score. PMI is removed once you reach 20% equity.
What is the average home price in Indiana?
Home prices vary widely by city and county in Indiana, and medians change monthly. The $235,000 default in this calculator is an example, not a market median - enter the price of the home you are considering, or check current local sales data from your agent or the state Realtors association.
What is the property tax rate in Indiana?
Indiana’s effective property tax rate on owner-occupied homes is 0.76% according to the Tax Foundation - about $1,786 a year on a $235,000 home. The constitutional circuit breaker also caps a homestead’s tax bill at 1% of gross assessed value.
Does Indiana cap my residential property tax?
Yes. Article 10, Section 1 of the Indiana Constitution caps the property tax on a homestead at 1% of its gross assessed value, other residential property such as rentals and second homes at 2%, and non-residential property at 3%, according to the Department of Local Government Finance. On a $300,000 homestead that is a maximum of $3,000 a year before voter-approved levies outside the cap. The homestead deduction must be on file with your county auditor.
Does Indiana have a real estate transfer tax?
No. Indiana has no state or local real estate transfer tax, so a home purchase does not add one to your closing costs. You will still pay recording fees and lender, title and escrow charges, which are listed on your Loan Estimate.
What is the monthly payment on a $300,000 house in Indiana?
With 10% down and a 30-year fixed loan at 6.5%, principal and interest is about $1,707 a month. Adding 0.76% property tax ($190), $1,350 a year insurance ($113) and 0.6% PMI ($135) brings the total to about $2,144 a month.