Indiana Mortgage Calculator | The Ascent – The Motley Fool

March 3, 2022 By admin

If you’re on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Credit Cards
Banks
Check out our top picks of the best online savings accounts.
Get Started!
Brokers
Crypto
Mortgages
Insurances
Loans
Before you apply for a personal loan, here's what you need to know.
Get Started!
Knowledge
If you're looking to buy a home in Indiana, it's important to understand what your monthly mortgage payments will look like once you sign your loan. That way, you can make sure those payments fit comfortably within your budget. Our Indiana mortgage calculator makes it easy to run the numbers and get a sense of your mortgage payments based on the amount you borrow.
If you're looking to buy a home in Indiana, it's important to understand what your monthly mortgage payments will look like once you sign your loan. That way, you can make sure those payments fit comfortably within your budget. Our Indiana mortgage calculator makes it easy to run the numbers and get a sense of your mortgage payments based on the amount you borrow.
Indiana is a notably affordable place to buy a home. The median home value in Indiana right now is only $166,556, according to Zillow. By contrast, the median home value on a national level is $295,300.
In fact, many major Indiana cities offer low home values despite the abundance of amenities residents enjoy. In Fort Wayne, the median home value is $110,600, reports Niche. In South Bend, it's $82,500. Even Indianapolis has affordable homes — the median property value there is $129,300.
Indiana's current mortgage rates are also quite competitive. Note the mortgage rate you qualify for depends on a number of factors. These might include your credit score, income, and existing debt. However, you can use the current average Indiana mortgage interest rate with our simple Indiana mortgage calculator to estimate monthly payments.
To calculate your monthly mortgage payments in Indiana, just take your loan amount, its term (the number of years you'll be paying it back), and your rate, and plug them into our Indiana mortgage calculator.
Based on a rate of 3.005% and a 30-year term, a $100,000 mortgage in Indiana will cost you $421.60 a month for principal and interest on your loan. But there are other expenses you need to tack onto that figure to see what your total monthly housing costs will be. These include:
It's these added costs that can really catch you off guard as a new home buyer, so use our Indiana mortgage calculator to see exactly how your monthly payments might break down.
If you want to calculate your mortgage payment for yourself, you can use this formula:

True, housing in Indiana is relatively affordable compared to home costs in the rest of the country. But you still should, of course, make sure your income can support your mortgage payments.
As a general rule, your mortgage payment should not eat up more than 30% of your take-home pay. By "mortgage payment," we're not just talking about principal and interest on your loan. Rather, we're talking about principal and interest plus all of the items bulleted above: taxes, insurance, etc. This means that if your post-tax paycheck gives you $3,000 a month, you should not spend more than $900 a month on your mortgage payment and the above expenses.
However, that 30% rule doesn't have to include maintenance. It can include maintenance, but it's also okay if maintenance costs sometimes go above your 30% budget (as long as you can afford it).
Home maintenance is often a variable expense. You might, for example, spend more money on maintenance during the winter months than the summer, or vice versa. Because of this, some people prefer to keep their predictable monthly housing costs to 30% of their income or less — and budget for maintenance separately.
Property maintenance generally amounts to 1% to 4% of your home's value per year. What does that mean for you? If you buy a home worth $100,000, budget $1,000-4,000 each year for maintenance. The older your home, and the worse shape it's in, the more maintenance is likely to cost.
This estimate applies to general maintenance, but major repairs are a separate category, so make sure you have a decent chunk of money in emergency savings in case big issues arise.
Buying a home for the first time can be a nerve-wracking experience — and an expensive one at that, even in a state like Indiana where homes are relatively affordable. Here are a few things to remember as you buy your first home.
Thankfully, there are a number of programs that could help you afford your first home.
One is the First Place Program, which offers first-time buyers down payment assistance of up to 6% (some borrowers, including veterans, may qualify for this program even if they're not first-time buyers). Under this program, you get a 30-year fixed FHA loan, provided you have a minimum credit score of 640 and your debt-to-income ratio is less than 45%. Or you can qualify with a minimum credit score of 680 if your debt-to-income ratio is above 45%, but under 50%.
You may also qualify for a Mortgage Credit Certificate, a certificate issued by some state or local governments that gives you a tax credit for some of the mortgage interest you pay. If you're a U.S. veteran, you might also qualify for a VA loan, so check out the best VA mortgage lenders to see what offers you're eligible for.
If you're applying for a home loan, it pays to gather offers from several mortgage lenders rather than going with the first offer you receive. Each lender sets its own rates and closing costs. If you gather a few offers, you can use our Indiana mortgage calculator to compare your costs with each.
Keep in mind that there are steps you can take to snag the best mortgage rates possible. These include:
The more stable you seem to lenders, the less lenders will charge you for your mortgage.
If you're certain you want to settle down in Indiana, then it definitely pays to use our Indiana mortgage calculator to get a sense of your monthly payment. That way, you can factor that payment into your budget and make sure you're truly comfortable with it. Remember, while homes may be affordable in Indiana, you want to make sure the property you buy is actually affordable to you.
Getting pre-approved for a mortgage loan is an important step in the home buying process. Our experts recommend mortgage pre-approval before you begin looking at houses or deciding on a real estate agent.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 – 2022 The Ascent. All rights reserved.

source