Indiana Mortgage and Refinance Rates

Current mortgage rates in Indiana

As of Tuesday, April 29, 2025, current interest rates in Indiana are 6.96% for a 30-year fixed mortgage and 6.35% 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. Rate cuts last year by the Federal Reserve didn’t budge mortgage rates much, but rates have finally decreased a bit in recent weeks as concerns about a potential recession and rising inflation have rocked markets. Currently, prospective homebuyers can expect to see rates between 6 and 7 percent. While experts predict that mortgage rates will continue to decrease into next year, they’ll likely remain within this range.

Refinance rates in Indiana

Mortgage refinance rates have fallen a bit since recent highs. If you took out your mortgage within the last few years — 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.

However, while rates may be relatively high, property values are also on the rise in Indiana. In the fourth quarter of 2024, the average mortgageholder gained $4,100 in equity over the prior year, according to property data firm Cotality. Refinancing may not get you a lower rate, but a cash-out refinance could help you fund larger expenses more cheaply than other forms of borrowing.

National mortgage rates by loan type

Indiana housing market statistics and trends

• Median home sales price, Jan. 2025: $242,500
• Median home value, Feb. 2025: $242,750
• Median down payment, Jan. 2025: $40,800
• Percentage of homes sold above list price, Feb. 2025: 15.8%
• Percentage of homes with price drops, Feb. 2025: 28.9%
• Homeownership rate Q4 2024: 70.4%

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

Mortgage options in Indiana

There have been 138,107 residential properties sold in Indiana over the past 12 months, as of February 2025, according to ATTOM. If you're hoping to join these ranks, consider one of these types of mortgages: 

• Indiana conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 45 percent. 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 an 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 6 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.
• Buying a house in Indianapolis: Learn about the real estate scene in Indiana’s largest city.
• Best homeowners insurance in Indiana: Compare policies from a variety of providers.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Edited by: Alice Holbrook, Editor, Home Lending

I have been a writer and editor in the personal finance space for more than a decade, with more than three of those focused on homebuying and homeownership. I’ve had work appear in outlets including Newsweek, The Washington Post, The Associated Press, USA Today and MarketWatch.

Read more from Alice Holbrook