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Closing Costs in Indiana (2026)

Buyers in Indiana typically pay $5,178 to $12,945 in closing costs (2–5%) on a median-priced home of $258,900. Our itemized estimate: about $8,754 (3.4% of the price), plus a $51,780 down payment at 20% down.

Indiana at a Glance

Median home price

$258,900

Estimated closing costs

$8,754

3.4% of price

Property tax rate

0.87%

≈ $2,252/year

2026 conforming loan limit

$832,750

2026 one-unit conforming limit

Cash to close

$60,534

20% down + closing costs

Monthly payment

$1,652

30-yr at 6.75%

What Makes Indiana Different

Indiana has no real estate transfer tax and title-company closings, which keeps government fees lean. Home prices and insurance sit near the Midwest average, so cash to close is driven mostly by the down payment and lender fees.

Local cost factors

Buyer-paid transfer tax

None typical

Seller-paid or no state transfer tax

Closing custom

Title / escrow

Closings usually run through a title or escrow company

Homeowners insurance

$1,450/yr

Typical premium scaled to the median-priced example

Example loan vs. limit

Conforming

$207,120 loan at 20% down

Itemized Closing Cost Estimate

Assumes a $258,900 purchase with 20% down ($207,120 loan) at 6.75% for 30 years, a 0.87% property tax rate, and $1,450/year insurance. Transfer tax includes only the share buyers in Indiana customarily pay.

Line ItemCategoryEstimate
Loan Origination Fee (1% assumed)Lender fees$2,071
Credit ReportLender fees$50
Flood CertificationLender fees$20
Underwriting FeeLender fees$750
Processing FeeLender fees$500
AppraisalThird-party fees$550
Title InsuranceThird-party fees$1,036
Title SearchThird-party fees$300
Survey (if required)Third-party fees$400
Recording FeeGovernment fees$125
Prepaid Interest (15 days)Prepaids & escrow$575
Prepaid Homeowners Insurance (1 year)Prepaids & escrow$1,450
Escrow Prefund — Property Taxes (3 months)Prepaids & escrow$564
Escrow Prefund — Insurance (3 months)Prepaids & escrow$363
Total estimated closing costs$8,754

What You'd Pay Each Month

On a median-priced Indiana home with 20% down, the full monthly payment is about $1,652: $1,343 in principal and interest, $188 in property taxes, and $121 in homeowners insurance. Taxes and insurance here add 23% on top of the loan payment itself.

Run Your Own Numbers

Closing Cost EstimatorHow Much House Can I Afford?True Monthly Mortgage CostDown Payment Strategy

Frequently Asked Questions

Buyers in Indiana typically pay 2% to 5% of the purchase price in closing costs — roughly $5,178 to $12,945 on a median-priced home around $258,900. Our itemized estimate, including lender fees, title work, government fees, and prepaid taxes and insurance, comes to about $8,754 (3.4% of the price) with 20% down at 6.75%.

The effective property tax rate in Indiana is approximately 0.87% of home value per year. On a median-priced home of $258,900, that works out to about $2,252 per year, or $188 per month. Several months of taxes are usually collected up front at closing to fund your escrow account.

No statewide real estate transfer tax. That keeps government fees at closing lower in Indiana than in most states.

The 2026 conforming loan limit in Indiana is $832,750 for a one-unit home — the national baseline. No counties in this state are designated high-cost for 2026. On a median-priced $258,900 home with 20% down, the loan is $207,120, so a typical purchase stays conforming. FHA limits also vary by county (2026 floor about $541,288).

With 20% down on a $258,900 home, plan for about $60,534 in total: $51,780 for the down payment plus roughly $8,754 in closing costs and prepaid items. A smaller down payment reduces the cash needed but adds PMI to your monthly payment.

On a median-priced $258,900 home with 20% down and a 30-year loan at 6.75%, the total monthly payment is about $1,652 — $1,343 in principal and interest, $188 in property taxes, and $121 in homeowners insurance.

Nearby states

IllinoisIowaKansasMichiganMinnesotaMissouriNebraskaNorth DakotaOhioSouth DakotaWisconsin
Figures on this page are educational estimates, last reviewed October 18, 2026. Median prices (Redfin via Bankrate), effective property tax rates (Tax Foundation), insurance (Bankrate 2026 averages scaled to the median home), and 2026 conforming loan limits (FHFA) are approximations that vary by county, property, lender, and transaction. They are not a Loan Estimate and not financial advice — your lender's official Loan Estimate is the authoritative document for your closing costs. See our methodology.