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Getting a mortgage in Indiana is easier when you’ve done your homework. Put a few basic facts into this Indiana mortgage calculator and you’ll learn the monthly payment amount and total interest cost for your home purchase. You can also use the calculator to try out different scenarios to find the home price, down payment, and interest rate that fit your budget and goals.
Key Points
• An Indiana mortgage loan calculator helps you estimate the monthly and total costs of borrowing money to buy a home.
• In general, your mortgage payment should not exceed 28% of your gross monthly income.
• The calculator includes principal, interest, and estimated property tax.
• Extending the loan term can reduce monthly payments, making home buying more affordable.
• First-time homebuyer programs in Indiana offer down payment and closing cost assistance.
Indiana Mortgage Calculator
Calculator Definitions
• Home price: The home price is the agreed-upon purchase price with the home seller. This may differ from the listing price or your initial offer.
• Down payment: The down payment is the amount you plan to pay upfront. It’s often expressed as a percentage of the total home price, typically anywhere from 3% to 20%. A larger down payment can lower your monthly mortgage payments and eliminate the need for private mortgage insurance (PMI). Down payment assistance programs can help cover this cost.
• Loan term: The loan term is the length of time — typically 15 or 30 years — you have to repay the mortgage. A 15-year fixed mortgage has higher monthly payments but costs less in interest over the loan term. A 30-year fixed mortgage has lower monthly payments, but more interest accrues over time. An Indiana mortgage calculator can help you compare how different loan terms affect your monthly payments.
• Interest rate: The interest rate is the cost of borrowing funds, expressed as a percentage of the total loan amount. It varies based on borrower qualifications, market trends, and the type of mortgage loan.
• Annual property tax: Local governments charge property tax based on your land and buildings within guidelines set by your state. You can find your property tax rate by going online and searching for the town, county, or ZIP code where the property is located and the phrase “effective property tax rate.”
• Monthly payment: The monthly payment includes the loan’s principal and interest. This calculator also includes property taxes. Homeowners insurance and homeowners association fees may also be included in payments.
• Total interest paid: The total interest paid represents the amount of interest you will pay over the life of your home loan. A larger down payment, lower interest rate, or shorter loan term can reduce this amount.
• Total loan cost: The total loan cost represents the entire amount you will pay for the loan, including both the principal borrowed and the accumulated interest.
How to Use the Indiana Mortgage Calculator
Step 1: Enter Your Home Price
Input the home price, which is the agreed-upon purchase price with the home seller.
Step 2: Select a Down Payment Amount
Choose the percent of the home price you will pay upfront. A larger down payment can reduce monthly payments and total interest paid. Use a down payment calculator to determine the right figure for your budget.
Step 3: Choose a Loan Term
Select the length of time — anywhere from 10 to 30 years — you would like to repay the mortgage. A longer term means lower monthly payments but more interest over time.
Step 4: Enter an Interest Rate
Enter your estimated interest rate to the second or third decimal point. A lower rate reduces monthly payments and total interest paid.
Step 5: Add Your Annual Property Tax Rate
Enter the home’s property tax rate as a percentage. For example, type 1.2 if the rate is 1.2%.
Benefits of Using a Mortgage Payment Calculator
Using a mortgage payment calculator is a great way to help you figure out how much house you can afford. An Indiana mortgage calculator provides an estimated monthly payment based on the numbers you plug in, including home price, interest rate, and loan term. The tool is particularly helpful if you’re buying your first home.
You also can see overall numbers like total interest and the total loan cost. Play with the variables, like the price of home you’re eyeing, and interest rate, and you’ll see how these factors affect your payments. When you go house hunting, use this information to help you compare loan terms that fit your budget based on the type of mortgage loan you pursue.
In Indiana, the median home sale price in mid-2025 was around $280,000 — well below the national median of around $443,000, according to Redfin. Lenders suggest a mortgage payment shouldn’t exceed 28% of your gross monthly income, so if you were looking to afford a $280,000 home, factoring in a 20% down payment ($56,000), a 30-year mortgage at 7.00% interest, and the average Indiana property tax rate (0.77%), you’d need to earn an annual income of about $64,000. Lenders also recommend total debt payments stay under 36% of your gross monthly income, so in this case, other monthly debts shouldn’t exceed $428.
If you are looking into purchasing a very pricey property, consider something called a jumbo loan. This type of loan is designed for when your loan amount is over the conforming loan limit, which is set by the Federal Housing Finance Agency (FHFA).
Use a home affordability calculator for an estimate of how much house you can afford based on your income. Going through the mortgage preapproval process with a lender can also help you estimate what loan size and type you can afford.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a indiana to view current rates:
Components of a Mortgage Payment
The main components of a mortgage payment are the principal amount borrowed and the interest charged. This Indiana home mortgage calculator factors in property taxes, which are often included in the monthly payments. Your payment could also include PMI, home insurance, or homeowners association (HOA) fees, depending on your situation.
If you’re looking into a home loan guaranteed by the Federal Housing Administration (FHA), then use an FHA mortgage calculator, which factors in both the loan’s upfront and ongoing mortgage insurance premiums.
A VA mortgage calculator is the right tool if you’re seeking a loan backed by the U.S. Department of Veterans Affairs.
Cost of Living in Indiana
The cost of living reflects how much you can afford in a certain area. For instance, a dollar spent in Indianapolis, Indiana would go further than a dollar spent in a major city like New York or Los Angeles. Higher cost of living areas typically have higher average home prices, utilities, home maintenance, transportation, and other necessities.
You can refer to the cost of living index (COLI) to figure out how much money it takes for you to maintain a basic standard of living in a given place. For example, a COLI higher than 100 means the region is more expensive than the national average, while a COLI below 100 indicates it is less expensive.
Indiana’s 2024 COLI was 91.0, according to the Council for Community and Economic Research’s Cost of Living Index, and Indianapolis had a COLI of 88.8. Indiana falls in line with other midwestern states like Illinois and Ohio, with 2024 COLI of 94.7 and 94.3, respectively. On the other hand, New York and California, with COLIs of 125.1 and 142.3, respectively, are much more expensive places to live.
For further comparison, you can refer to this chart, which shows COLI figures for some of the major cities in Indiana.
Indiana Cities’ Cost-of-Living Stats
Bloomington
99.8
Evansville
93.5
Indianapolis
88.8
South Bend
90.2
Source: Council for Community and Economic Research’s Cost of Living Index.
If you’re considering buying a home in one of the best affordable places in the U.S., you now know how to compare cost of living numbers to help you decide.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Tips on Reducing Your Mortgage Payment
Since your mortgage payment is likely your biggest recurring bill, even a small reduction can free up funds for other expenses or to build your emergency savings. You might be able to lower your mortgage payment by following some of these tips:
• Once you’ve built 20% equity in your home, request that your lender cancel PMI payments to save on unnecessary costs.
• Make additional payments toward the principal to decrease both the term of your loan and the total interest paid over its lifetime.
• Take a closer look at your property taxes. If you think you’re paying too much, go to your county assessor and ask about the appeals process.
• Look into bundling with your insurance provider. Sometimes if you purchase more than one policy with them — both a homeowners and auto policy, for example — they may offer a discount.
• If mortgage rates have dropped since you made your purchase, consider a mortgage refinance.
• If you are experiencing financial difficulties, consider a loan modification. A modification changes the terms of a loan, like having a new repayment timetable, a lower interest rate, or a switch from an adjustable rate to a fixed rate. Be prepared to show proof of financial hardship with bank statements or tax returns.
If it’s your first time buying a home, you will be happy to know that there are programs that can make homeownership more achievable by reducing the upfront financial burden. To qualify as a first-time homebuyer, you must not have owned a primary residence within the past three years.
Look into down payment assistance programs, which can provide financial aid for the down payment, closing costs, or both, making homeownership more accessible. The Indiana Housing and Community Development Authority offers several programs for first-time homebuyers in Indiana. Check with local housing authorities or financial institutions to determine your eligibility in Indiana.
The Takeaway
Using an Indiana mortgage calculator is a valuable step in the home-buying process. It helps you estimate monthly payments, understand mortgage components, and make informed decisions about your home loan. By using this tool, you can better navigate homeownership and align your budget with your goals. The Indiana mortgage calculator can be a helpful resource for both first-time homebuyers in Indiana or those who are looking to refinance.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
How much you decide to put down is an individual decision, so take into account your financial situation and goals and use an Indiana mortgage calculator to run the numbers. If you are buying your first home, you can sometimes make a down payment as little as 3% toward the purchase price of a home. A larger down payment can result in lower monthly mortgage payments and potentially better loan terms.
Should I choose a 30-year or 15-year mortgage term?
When choosing a mortgage term, consider that a 30-year term offers lower monthly payments but more interest over time, while a 15-year term has higher monthly payments but less interest paid overall. Assess your financial goals and budget when opting for a certain term.
How can I get a lower mortgage interest rate?
For the lowest mortgage interest rate, work on improving your credit score by aiming for 700 or higher (this is well over the 620 credit score you’ll need to qualify for a home loan). Go through the prequalification process with a variety of lenders to see how low a rate you might be able to obtain. A higher down payment may help, too, if you can afford to make one.
How much income do you need for a $280,000 mortgage?
You’d need to earn an annual income of about $64,000 for a $280,000 mortgage, factoring in a 20% down payment ($56,000), a 30-year mortgage at 7.00% interest, and the average Indiana property tax rate (0.77%). Lenders also recommend total debt payments stay under 36% of your gross monthly income, so in this case, other monthly debts shouldn’t exceed $428.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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