Indiana Refinance Rates & Programs 2026

Indiana offers affordable housing and low refinancing costs, making it an excellent state for homeowners to save money when rates drop. From Indianapolis to Fort Wayne and Evansville, here's what you need to know about refinancing in the Hoosier State.

Current Indiana Refinance Rates

As of March 2026, Indiana homeowners are seeing these average rates:

| Loan Type | Average Rate | |-----------|--------------| | 30-Year Fixed | 6.22% | | 15-Year Fixed | 5.54% | | FHA 30-Year | 6.17% | | VA 30-Year | 5.50% |

Note: Indianapolis metro may see slightly lower rates due to lender competition. Use our refinance calculator for personalized quotes.

Indiana-Specific Refinance Programs

Indiana Housing and Community Development Authority (IHCDA)

The IHCDA offers homeownership programs including:

Next Home Program:

• Primarily for first-time buyers
• If you used IHCDA down payment assistance, check subordination requirements before refinancing
• Contact your servicer to discuss options

Mortgage Credit Certificate (MCC): IHCDA offers MCCs providing up to $2,000 in annual federal tax credits. If you have an MCC, you can keep it when refinancing with an MCC-participating lender.

USDA Refinancing

Much of Indiana outside Indianapolis, Fort Wayne, Evansville, and South Bend qualifies for USDA rural housing loans. If you currently have a USDA loan:

• USDA Streamlined Assist — No appraisal, no credit check
• USDA Streamline — Simplified documentation

FHA to Conventional Refinancing

Indiana has high FHA loan volume due to affordable housing. If you currently have FHA and now have 20%+ equity, refinancing to conventional:

• Eliminates FHA mortgage insurance (MIP)
• Saves $75-$200 monthly
• May provide better rates

Cost of Refinancing in Indiana

Indiana has some of the lowest refinancing costs in the nation:

| Cost Item | Typical Amount | |-----------|---------------| | Lender origination fee | $0 - $1,800 | | Appraisal | $350 - $550 | | Title insurance | $600 - $1,000 | | Recording fees | $25 - $50 | | Credit report | $25 - $50 | | Total typical closing costs | $2,800 - $5,500 |

Indiana has no state mortgage tax or transfer tax on refinances.

Indiana-specific benefits:

• Low recording fees: Among the lowest in the nation
• Affordable appraisals: $350-$550 vs. $600+ in many states
• No documentary stamps: Indiana doesn't charge doc stamps

Use our break-even calculator to see how quickly you recoup costs.

When to Refinance in Indiana

Consider refinancing if:

Rates have dropped 0.75% or more — Indiana's low closing costs mean you can break even quickly. If you plan to stay in the home 18-24 months, refinancing often makes sense.

You want to eliminate PMI or MIP — If you now have 20%+ equity, refinancing drops mortgage insurance and saves $50-$200 monthly.

You're switching from ARM to fixed — Locking in a fixed rate around 6.22% provides payment stability.

You need to consolidate debt — Indiana homeowners can use cash-out refinancing to consolidate credit card debt, student loans, or auto loans at much lower rates. See our cash-out refinance guide.

Types of Refinance Available in Indiana

Conventional Refinance

Best for homeowners with:

• Credit score 620+ (740+ for best rates)
• At least 20% equity (80% LTV)
• Documented income
• Standard property types

FHA Streamline Refinance

If you currently have an FHA loan:

• No appraisal required
• Minimal documentation
• Can refinance even if underwater
• Must show net tangible benefit

VA IRRRL (Streamline)

For Indiana veterans with VA loans:

• No appraisal needed
• No income verification in most cases
• 0.5% VA funding fee
• Can roll closing costs into loan

USDA Streamlined

For rural Indiana properties with USDA loans:

• No appraisal
• No credit check
• Must be current on existing loan
• Available in most Indiana counties

Cash-Out Refinance

Access your equity:

• Conventional: up to 80% LTV
• VA: up to 100% LTV for qualified veterans
• FHA: up to 80% LTV

Learn more in our complete refinancing guide.

Indiana Refinance FAQ

1. How long does refinancing take in Indiana? Typically 25-35 days from application to closing—faster than many states due to straightforward title work and simple recording processes.

2. Will my property taxes change if I refinance? No. Indiana property taxes are based on assessed value determined by county assessors. Refinancing doesn't trigger reassessment—only property sales or major improvements do.

3. Can I refinance a manufactured home in Indiana? Yes, if:

• Permanently affixed to land you own
• HUD certification label present
• Title eliminated (converted to real property)
• Meets lender requirements

Manufactured homes are common in Indiana and most lenders are experienced with them.

4. What credit score do I need to refinance in Indiana? Minimum 580 for FHA, 620 for conventional. Best rates require 740+. Even improving from 680 to 740 can save 0.25%-0.375% on your rate.

5. Can I keep my IHCDA Mortgage Credit Certificate when I refinance? Yes, but only with an MCC-participating lender. The new loan must be equal to or less than your current balance. Contact IHCDA before refinancing—MCCs provide up to $2,000 in annual tax credits.

Bottom Line

Indiana's low refinancing costs and simple processes make it one of the best states for refinancing. If rates have dropped 0.75% or more and you plan to stay in the home 18+ months, you'll likely save money.

Get your Indiana refinance quote: See personalized rates here. Compare rates from multiple lenders and calculate your exact monthly savings.

For more details, check out our refinance closing costs guide.

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About the Author: Bill McCoy is a licensed mortgage broker with 15 years of experience helping homeowners nationwide refinance. This guide reflects current 2026 market conditions and Indiana-specific regulations.