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Mortgage rates in Indiana
Since 1982, rates have come in higher than the national average.
Mortgage rates during the coronavirus
As mortgage rates fall to record lows in the wake of COVID-19, our partners are seeing an increase in demand for loans and refinancing. As they work through this influx of applications, you may see rates that are higher than expected — or no rates at all. We recommend comparing offers from multiple lenders to ensure you're getting the best deal possible.
A 30-year home loan in the Hoosier State averages 4.867%, and should fluctuate around 4% in the upcoming year.
What's in this guide?
How much do Indiana rates vary?
Average interest rates for 30-year home loans in Indiana were between 4.750% and 4.932% in 2018. Rates are determined by your credit, region and loan amount. But the type of loan you qualify for and its terms can affect rates.
2018 average rates in Indiana by loan type
| Loan type | 15-year average rate | 30-year average rate |
|---|---|---|
| Conventional | 4.461% | 4.825% |
| FHA | 4.194% | 4.932% |
| VA | 4.029% | 4.750% |
| USDA | Not available | 4.920% |
Based on data from ffiec.cfpb.gov.
Let’s say you borrow $165,000, with a 30-year term on a conventional loan. At a rate of 4.825%, the monthly payment might run you $870, excluding taxes and other charges specific to your mortgage. But a 15-year term might cost $1,260 a month.
Though a 15-year mortgage may have higher monthly payments than 30-year loans, you could save $85,940 in interest payments over the course of the loan.
Which way are rates trending in Indiana?
Average mortgage rates in Indiana will likely hover around the 4% mark in 2020.
For almost 40 years, mortgage rates in Indiana have been higher than the rest of the country. In 2018, Indiana rates averaged 0.19% higher than the national average, while 2017 was 0.16% higher.
National housing authorities are calling for the US 30-year rate to average between 3.55% and 3.90%. Indiana rates will likely come in higher than the national average and hold steady around 4%.
Compare mortgage rates throughout Indiana
Mortgage rates and home prices vary within the Hoosier State, depending on the region.
Using data from the Home Mortgage Disclosure Act, we calculated what you might pay on the average 30-year fixed-rate mortgage in different metropolitan areas throughout Indiana. The estimated amounts don’t include taxes or fees specific to your mortgage.
| Metropolitan statistical area (MSA) | Average mortgage rate | Median loan amount | Estimated monthly cost |
|---|---|---|---|
| Bloomington | 4.755% | $165,000 | $860 |
| Cincinnati MSA (Dearborn, Franklin, Ohio and Union Counties, IN) | 4.886% | $155,000 | $820 |
| Columbus | 4.810% | $155,000 | $810 |
| Elkhart-Goshen | 4.930% | $145,000 | $770 |
| Evansville MSA (Posey, Vanderburgh and Warrick Counties, IN) | 4.772% | $135,000 | $700 |
| Fort Wayne | 4.849% | $135,000 | $710 |
| Chicago-Naperville-Elgin, IL-IN-WI | 4.866% | $165,000 | $870 |
| Indianapolis-Carmel-Anderson | 4.832% | $175,000 | $920 |
| Kokomo | 4.953% | $125,000 | $670 |
| Lafayette-West Lafayette | 4.815% | $145,000 | $760 |
| Louisville MSA (Clark, Floyd, Harrison and Washington Counties, IN) | 4.786% | $145,000 | $760 |
| Michigan City-La Porte | 4.882% | $135,000 | $720 |
| Muncie | 4.933% | $105,000 | $560 |
| South Bend MSA (St. Joseph Counties, IN) | 4.876% | $135,000 | $710 |
| Terre Haute | 5.003% | $105,000 | $560 |
Based on data from ffiec.cfpb.gov.
How to get the best mortgage rate in Indiana
Some ways to get the most competitive interest rate on your home loan in Indiana:
- Compare loan products. Lenders may charge different interest rates depending on the loan program. Learn what loan products you qualify for and compare interest rates.
- Amp up your borrowing profile. Lenders give the best mortgage rates to creditworthy borrowers. Take some time to raise your credit score and check for errors in your credit report before applying for a loan.
- Consider closing costs. Some lenders issue lower interest rates in exchange for racking up the closing costs. You can expect closing costs in Indiana to be between 1.00% to 1.99% of the home purchase price. Weigh lender fees and interest rates together to make sure you’re getting the best deal.
- Get preapproved. Lenders run your credit during preapproval to give you an estimated rate and a maximum loan amount that they are willing to lend you. Multiple credit checks count as a single inquiry if it occurs within a 45-day window. Shop around and get multiple preapprovals within this time frame to find the best loan terms.
Historical mortgage interest rates in Indiana
Bottom line
Indiana mortgage rates are historically higher than the national average. As housing agencies predict steady rates in the upper 3% range, Indiana rates will likely come in just above, around the 4% mark. Compare home loans and lenders to find the right mortgage for you.
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