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Indiana Mortgage Rates

Updated May 08, 2023   |   6 mins read

Check out the latest average mortgage rates in Indiana for conventional and non-conventional mortgages. You can compare them to current national rates as well as historical interest rates for both Indiana and the United States.

Current Mortgage Rates in Indiana

Mortgage TypeAvg. IN RateNational Rate
30-Year Fixed4.25%3.60%
15-Year Fixed3.38%3.05%
30-Year 5/1 ARM3.88%3.36%
30-Year 3/1 ARM3.81%
30-Year 7/1 ARM3.99%
30-Year 10/1 ARM4.05%

Last update: 1/30/2020
Source: Consumer Financial Protection Bureau, Federal Reserve Bank of St. Louis

Non-Conventional Mortgage Rates in Indiana

Mortgage TypeAvg. IN Rate
FHA 30-Year Fixed3.81%
FHA 15-Year Fixed3.81%
VA 30-Year Fixed3.83%
VA 15-Year Fixed3.80%

Last update: 1/30/2020
Source: Consumer Financial Protection Bureau

Historical Mortgage Rate Trends in IN

Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Note: Adjustable mortgage rates excluded due to insufficient data.

Historical Mortgage Rate Trends in the U.S.

Source: Freddie Mac

How to Shop for a Mortgage

1. Review Your Financial Situation

If you want to apply for a mortgage, it’s essential to review your financial situation such as your credit score, debt, and income. Lenders consider these when deciding whether to approve you for a mortgage and they have a big impact on your interest rate. If you have a high credit score and income, then you are more likely to get a lower interest rate.

2. Learn About Different Mortgage Rates, Types, and Terms

Before shopping for a mortgage, be sure to know how they work and the different terminology that you’ll see during the application process. For example, there are various mortgage types, including conventional and non-conventional (FHA or VA) mortgages, and which is best for you will depend on your situation.

Lenders offer fixed-rate loans as well as adjustable-rate mortgages (ARM), and there are several different ARM types including 5/1, 3/1, 7/1, and 10/1. Furthermore, mortgage terms are usually 15 or 30 years, but it may be possible to get a 10- or 20-year term depending on the lender.

3. Seek Prequalification

Either before or during your house search, you should seek prequalification from one or more mortgage lenders in your area or online.

This will allow you to get an idea of if you are eligible for a mortgage or not, what amount you may be able to borrow, and what your rate will be around. This is an important step because it adds certainty to your home application and outlines a range of home values that you can afford.

Typically, no hard credit pull is required for prequalification so your credit score won’t be affected.

4. Compare Multiple Lenders to Find the Best Rate

The next step is to compare different mortgage lenders to find your best option. Certain lenders may offer lower rates or more benefits than others, so it’s important to shop around.

Be sure to consider rates, fees, benefits, repayment terms, down payment requirements, and other customers’ experiences when comparing options.

5. Seek Preapproval

Once you know which mortgage lenders you want to go with and have a house in mind, it’s time to make a bid. Before making a bid, you should seek a letter of preapproval from your preferred mortgage lender.

A letter of preapproval is a powerful component in a bid. It shows the owner that you mean business, and it’s also a more formal approval for a home loan.

6. Negotiate Your Mortgage Terms & Lock in a Rate

If your bid was accepted, it’s time to move forward with taking out your mortgage. You should try to negotiate your interest rate, closing costs, and terms as best as you can to secure the most beneficial loan for yourself.

Basic Mortgage Rate Definitions

Mortgages can be confusing, so we put together a few basic definitions to help you understand some of the terminology you’ll come across during the application process.

Other Helpful Mortgage Resources