Refinance rates in Indiana
Refinance rates are often slightly higher than purchase mortgage rates. Cash-out refi rates are usually higher rates than regular refinance rates. Conventional refinance rates are higher than the rates that come with government-backed refinances.
FHA loan rates are typically lower than conventional refinance rates. Right now in Indiana, they’re about 40 basis points lower. VA loan rates are usually very low compared to other loan types.Current 30-year fixed mortgage refinance rates are averaging: 7.31%
The current average rate for a 15-year fixed mortgage refinance is: 6.76%
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast for 2024?The mortgage rates forecast for 2024 is for a continued slow decline, with 30-year rates remaining under 7% and ending the year closer to 6%.
However, our market expert advises against attempting to “time” the market. Your readiness for a home purchase shouldn’t depend on what interest rates are doing — instead, it should be based on your finances and ability to afford a loan. You can set yourself up to get the best rates possible (and therefore the most affordable payments possible) by learning what determines mortgage rates. From there, take steps to improve the determining factors you can control.
There are many factors determining mortgage rates that are out of your control, but here are a few steps you can take to get the best mortgage rate:
Read more about our picks for the best mortgage lenders.
When should I lock in my mortgage rate?If you’ve applied for a mortgage and received a loan estimate, you can request that the lender give you a mortgage rate lock. This is a way to pin down that interest rate, ensuring that it won’t increase before you make it to closing.
The INHP offers down payment assistance of up to $24,999, which can be used toward your down payment or closing costs.
Who qualifies?Borrowers must:
Use in conjunction with an INHP first mortgage
Not exceed income limits, which range from $54,150 for a single-person household to $102,150 for an eight-person household.
The Indiana Housing and Community Development Authority (ICHDA) runs several first-time homebuyer programs, including down payment assistance and programs that help cover closing costs. However, these programs also allow buyers who aren’t first-time homebuyers to participate if they live in a targeted area or have a qualifying military history.
Who qualifies as a first-time homebuyer? People who have never owned a home
People who haven’t owned real estate in the last three years
What qualifies as a targeted area? Areas within the qualified census tract. They’re highlighted in yellow on this map.
Areas of chronic economic distress. These are highlighted in blue on the same map.
What military history qualifies a veteran? Service in the military, Navy, Air Force or Indiana National Guard
Eligibility for VA health benefits
The First Step program offers 6% of your purchase price in down payment assistance, and can be used with a conventional or FHA loan. It’s nonforgivable, which means you’ll have to pay the funds back when you pay off the mortgage or if you sell the home. However, until that point, you won’t have to make any payments toward the loan.
Who qualifiesBorrowers must:
Purchase a single-family home
Have a minimum 620 credit score for a conventional loan, a minimum 500 for an FHA loan or a minimum 680 for a manufactured home purchase
Make no more than the ICHDA income limits, which vary by county
Pay a $250 reservation fee
The Next Home program gives borrowers purchasing with conventional or FHA loans a way to supplement their down payment funds, pay closing costs or cover other prepaid costs. The program offers up to 3.5% of the home price in the form of a second mortgage, which doesn’t have to be repaid as long as you remain in the home and hold the mortgage loan for at least three years.
Who qualifiesBorrowers must:
Have a minimum credit score of 640 if their DTI ratio is under 45%
Have a credit score of at least 680 if their DTI ratio is between 45% and 50%
Make no more than the ICHDA income limits, which vary by county
Have a 30-year loan term
Explore more options at our first-time homebuyer programs page..
→ Indiana conventional loans.. Conventional loans are a very common choice because they offer competitive interest rates and loan terms for borrowers who can meet their credit score and down payment requirements. Most, but not all, conventional loans go by the minimum requirements set by Fannie Mae and Freddie Mac.
→ Indiana FHA loans.. If you aren’t able to qualify for a conventional loan, don’t worry — FHA loan requirements are far more forgiving. If you have a 10% down payment saved up, you can qualify with a credit score as low as 500. Or, if you need to make a smaller down payment, you can put down as little as 3.5% as long as your credit score is 580 or higher.
→ Indiana VA loans.. VA loan requirements are designed to help military borrowers become homeowners, and come with some perks you won’t find anywhere else. For instance, as long as you have full VA entitlement, you won’t be required to make a down payment. You also won’t have to pay for mortgage insurance, although most borrowers do have to pay a VA funding fee.
→ Indiana streamline refinances make refinancing easy by reducing the amount of paperwork and documentation you need to make it to the closing table. An FHA streamline refinance loan or VA interest rate reduction refinance loan (IRRRL) can be good options. However, these loans aren’t for everyone, since you’ll have to refinance into the same loan type you used for your first mortgage. In other words, you have to refinance from an FHA loan into an FHA loan, or from a VA loan into a VA loan.
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