Mortgage Payment Guide · Indiana
Monthly Mortgage Payment on a $350K Home in Indiana (2026)
The number most lenders quote for a $350,000 home in Indiana is $1,751/month — that's principal and interest (P&I) only. It leaves out property taxes, homeowners insurance, and PMI (private mortgage insurance) if your down payment is under 20%. The real all-in monthly payment — lenders call this PITI, short for principal, interest, taxes, and insurance — with 20% down is $2,123. Here's exactly how that breaks down.
New to this? Quick definitions
- PITI —
- principal, interest, taxes, and insurance. The full monthly housing payment, not just the loan piece.
- P&I —
- principal and interest only — what most lenders quote up front, before taxes and insurance are added.
- PMI —
- private mortgage insurance. An extra monthly fee lenders charge when your down payment is under 20%, protecting the lender (not you) if you default.
- DTI —
- debt-to-income ratio. Your monthly debt payments divided by gross monthly income — front-end DTI counts housing only, back-end DTI counts all debts.
Calculate Your Actual Monthly Payment
Mortgage Estimator
Indiana rates pre-loaded
Monthly Payment
$2,123
estimated all-in payment (PITI)
Tax rate: 0.75% (Indiana effective rate, Tax Foundation 2024) · Insurance: $1,836/yr (Indiana average, Insurify 2026)
Excludes HOA fees. Rates and costs are estimates; actual costs vary.
Full Calculator →Rate: 6.4% (Freddie Mac Primary Mortgage Market Survey). Property tax: 0.75% effective rate (Tax Foundation Property Taxes by State 2024). Insurance: $1,836/yr (Insurance.com Rate Analysis 2026).
Full Cost Breakdown: $350,000 Home in Indiana
| Cost Component | 20% Down ($70,000) | 10% Down ($35,000) |
|---|---|---|
| Home Price | $350,000 | $350,000 |
| Loan Amount | $280,000 | $315,000 |
| Principal & Interest | $1,751/mo | $1,970/mo |
| Property Tax (0.75% rate) | $219/mo | $219/mo |
| Home Insurance | $153/mo | $153/mo |
| PMI (drops ~month 94) | — | $121/mo |
| Total Monthly PITI | $2,123/mo | $2,463/mo |
| Income Needed (28% DTI) | $90,993/yr | $105,550/yr |
| Income Needed (36% DTI) | $70,772/yr | $82,095/yr |
These estimates use Indiana's 0.75% effective property tax rate (Tax Foundation Property Taxes by State 2024) and the statewide average home insurance premium of $1,836/year (Insurance.com Rate Analysis 2026). Your actual costs will vary by county and property.
Where your money goes each month
Mistakes first-time buyers make
- Comparing lenders only on the interest rate they quote, instead of the APR and total fees on the Loan Estimate.
- Budgeting off the P&I number alone instead of the full PITI payment shown above.
- Not accounting for PMI when putting down less than 20% — it can add hundreds a month until you hit 20% equity.
- Assuming the qualifying DTI limit (28%/36%) is a comfortable target rather than a lender ceiling.
Pro tips
- Get quotes from 3+ lenders within a 2-week window — credit bureaus count them as a single inquiry, so it won't hurt your score.
- Ask every lender for a Loan Estimate so you're comparing rate, fees, and PMI side by side, not just the headline rate.
- Only buy discount points if you'll stay in the home long enough for the lower rate to pay back what the points cost upfront.
- Re-run the numbers above with your real credit score and quote — the statewide rate used here is an average, not your rate.
15-Year vs. 30-Year Mortgage on a $350,000 Home in Indiana
30-Year Fixed
$2,123/mo
Total interest: $350,510
15-Year Fixed
$2,719/mo
Total interest: $142,586
The 15-year payment is $596/month more than the 30-year. Over the life of the loan, you'd pay $350,510 in interest on a 30-year vs. $142,586 on a 15-year — a difference of $207,924. Whether that tradeoff makes sense depends on your income stability and other financial goals. The 15-year rate used here (5.90%) reflects the historical 0.5% spread between 30-year and 15-year fixed rates (Freddie Mac PMMS).
How Much Do You Need to Earn to Afford a $350,000 Home in Indiana?
The 28% front-end DTI ratio is the conventional guideline used by Fannie Mae and Freddie Mac: your total housing payment should not exceed 28% of your gross monthly income. When you carry other debts, the 36% back-end DTI limit applies to all obligations combined. Source: Fannie Mae Selling Guide B3-6-02.
| Other Monthly Debts | Income Needed (20% down) | Income Needed (10% down) |
|---|---|---|
| No other debts | $90,993/yr | $105,550/yr |
| $300/mo | $80,767/yr | $92,100/yr |
| $600/mo | $90,767/yr | $102,100/yr |
| $1,000/mo | $104,100/yr | $115,433/yr |
These are qualifying thresholds, not comfortable ones. Lenders can approve borrowers at 43% DTI or higher with compensating factors — that doesn't mean you should borrow that much. Our honest recommendation: target a payment that's no more than 25% of your take-home pay, not gross income.
What Makes Indiana Mortgage Costs Different from the National Average?
At 0.75%, Indiana's effective property tax rate is 0.32 percentage points below the national average of 1.07% (Tax Foundation 2024). On a $350,000 home, that saves you $1,120 per year compared to a median-tax state.
Indiana's average home insurance premium is $1,836/year — $345 less than the national average of $2,181 (Insurify 2026). This saves you $29/month compared to the national average.
The rate used in these calculations — 6.4% — reflects Indiana's 30-year fixed average from the Freddie Mac Primary Mortgage Market Survey. A 0.5% increase in your rate would add approximately $93/month to the principal and interest payment.
Indiana Rules That Change the Cost of a $350,000 Purchase
Recording fees
Statewide county recorder fees under IC 36-2-7-10: $25.00 for any deed or other instrument (other than a mortgage); $55.00 for a mortgage; pages larger than 8.5 x 14: $25.00 first page, $5.00 each additional page. (Indiana State Board of Accounts, retrieved 2026-09-14)
How Indiana arrives at the property tax bill
Gross assessed value reflecting market value-in-use, annually adjusted (trended) using sales data; assessment date January 1 (Indiana Department of Local Government Finance, retrieved 2026-09-14) No cap on assessed value confirmed; instead a constitutional/statutory property TAX cap (circuit breaker credit) limits tax to 1% of gross assessed value for homesteads (2% other residential, 3% nonresidential). Homestead must receive the Homestead Standard Deduction to get the 1% cap. (Indiana Department of Local Government Finance, retrieved 2026-09-14)
Under SEA 1-2025 the flat Homestead Standard Deduction phases down ($48,000 for 2025, $40,000 for the 2026 assessment date, $30,000 for 2027, to $0 by 2030) while the Supplemental Homestead Deduction rises from 40% (pay 2026) to 46% (pay 2027) and 66.7% by pay 2031 of assessed value remaining after the standard deduction. Homesteads also get the 1% circuit breaker tax cap and a supplemental homestead credit of up to $300 (10% of liability). When to file: Application to county auditor; e.g. completed on or before January 15, 2026 applies to the 2025 Pay 2026 tax bill. (Indiana Department of Local Government Finance, retrieved 2026-09-14)
If the assessed value looks wrong, the appeal window is June 15 of the assessment year if the Form 11 notice is mailed before May 1; otherwise June 15 of the year the tax bill is mailed, heard first by the Local assessing official (Form 130, informal meeting), then county Property Tax Assessment Board of Appeals (PTABOA). (Indiana Department of Local Government Finance, retrieved 2026-09-14)
Indiana Housing and Community Development Authority (IHCDA): First Step (bond-funded 30-year fixed with non-forgivable DPA, first-time buyers or targeted tracts); also Step Down (rate only) and Next Home (first-time and repeat buyers)
First Step (bond-funded 30-year fixed with non-forgivable DPA, first-time buyers or targeted tracts); also Step Down (rate only) and Next Home (first-time and repeat buyers) is the first-mortgage programme run by Indiana Housing and Community Development Authority (IHCDA). (Indiana Housing and Community Development Authority, retrieved 2026-09-14) Its purchase-price limit is $566,355 (Acquisition limit for First Step, Step Down and Next Home in most counties including Marion (Indianapolis); $692,211 in targeted areas; effective May 25, 2026), so a $350,000 home is within it. (Indiana Housing and Community Development Authority, retrieved 2026-09-14) The income limit is $110,300 (Marion County (Indianapolis), 1-2 person household, non-targeted ($126,845 for 3+ persons); limits vary by county (e.g. $95,300 in many counties); effective May 25, 2026); the $90,993 income this payment needs at a 28% housing ratio is under that line. (Indiana Housing and Community Development Authority, retrieved 2026-09-14) Down payment help comes through IHCDA Down Payment Assistance (non-forgivable second mortgage) - First Step / Next Home: Next Home: 2.50% or 3.50% based on the purchase price, not to exceed appraised value; non-forgivable second mortgage due in full on sale, refinance or when first mortgage ends. (Indiana Housing and Community Development Authority, retrieved 2026-09-14)
Check If You Qualify: Debt-to-Income Calculator
Debt-to-Income Calculator
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How Does $350,000 Compare to Other Home Prices in Indiana?
Frequently Asked Questions
What is the monthly payment on a $350,000 home in Indiana?
With 20% down ($70,000), the estimated all-in monthly payment on a $350,000 home in Indiana is $2,123/month. This includes principal and interest ($1,751), property taxes ($219/mo, based on Indiana's 0.75% effective rate), and home insurance ($153/mo, statewide average). With 10% down, the payment rises to $2,463/month due to PMI of $121/month.
How much do I need to earn to afford a $350,000 home in Indiana?
Using the 28% front-end DTI guideline (Fannie Mae Selling Guide B3-6-02), you'd need to earn at least $90,993/year with 20% down, or $105,550/year with 10% down, assuming no other monthly debts. If you carry $600/month in other debts, the required income rises to approximately $90,767/year (20% down) under the 36% back-end DTI rule.
Is PMI required on a $350,000 home in Indiana?
PMI is required on conventional loans when your down payment is less than 20%. With 10% down on a $350,000 home, PMI adds approximately $121/month. You can ask the lender to cancel it around month 94 (~8 years), when the balance reaches 80% of the original purchase price. If you don't ask, the Homeowners Protection Act requires your lender to end it automatically when the balance is scheduled to reach 78% of the original price.
Is $350,000 a realistic budget in Indiana?
Indiana's median home price is $226,100. A $350,000 budget is above the state median, which puts you in the upper half of the market. Inventory and competition vary significantly by metro area.
What is the difference between P&I and PITI on a $350,000 home?
P&I (principal and interest) is what lenders typically quote: $1,751/month on a $350,000 home in Indiana with 20% down. PITI adds property taxes ($219/mo) and homeowners insurance ($153/mo), bringing the true all-in payment to $2,123/month — a difference of $372/month that lenders often bury in the fine print.
Can I get a lower rate than 6.4% in Indiana?
Yes — the 6.4% rate used here is the Freddie Mac PMMS average and represents a well-qualified borrower. Borrowers with credit scores above 760, larger down payments, or who buy discount points can often secure lower rates. The CFPB recommends getting quotes from at least three lenders — even a 0.25% rate reduction saves approximately $16,200 over 30 years on this loan.
Related Resources
DTI Ratio Calculator
How lenders calculate what you can borrow
PMI Calculator
What mortgage insurance costs, and when it comes off
Down Payment Savings Calculator
How much you actually need, and how long it takes to save
FHA vs. Conventional Loans
True 30-year cost comparison with real numbers
Closing Costs Calculator
What you'll pay before the first mortgage payment
What to do with this number
You now know the true monthly payment on a $350,000 home in Indiana is $2,123 — not just the $1,751 P&I lenders lead with. Here's how to act on it.
Payment feels high at this price?
See the true monthly cost of owning a home in Indiana, including maintenance and utilities most buyers forget to budget for.
Want a lower payment?
Check down payment assistance programs in Indiana before assuming you need 10–20% down saved up.
Ready to compare lenders?
Plug your real rate and credit profile into the mortgage calculator and request Loan Estimates from a few lenders.
Monthly payment estimates are for educational purposes. Actual costs depend on your credit score, specific loan terms, local tax assessments, and insurance quotes. Tax and insurance figures represent statewide averages and vary significantly by county and property. Rates are current as of 2026-06 and change daily. Use these estimates as a starting point, not a commitment. Consult a licensed mortgage professional before making borrowing decisions.