Short answerStart from the monthly payment you are comfortable with, not the largest loan you qualify for. Add principal and interest, property taxes, homeowners insurance, any mortgage insurance, utilities, and a repair reserve. On a $220,000 home with 5% down at a 7.18% example rate, the loan payment, mortgage insurance, taxes, and insurance come to about $1,836 a month.
What goes into the monthly cost
- Principal and interest.
- Property taxes, often lower for a homestead.
- Homeowners insurance; older homes usually cost more to insure.
- Mortgage insurance with less than 20% down on most loans.
- Utilities and a reserve for repairs.
Run your own numbers with the monthly cost calculator.
What lenders look at
- Debt to income ratio: monthly debts, including the new payment, divided by gross monthly income.
- Credit history and score.
- Cash for down payment, closing costs, and reserves.
Local context
Year to date median sale prices through September 2026 ranged from $202,500 in Jennings County and $220,000 in Jackson County to $279,000 in Bartholomew County and $416,000 in Brown County. See every county we serve.
Loan rules and rates change and depend on your file. Your lender has the final word on what you qualify for.
Frequently asked questions
What percent of my income should go to housing?
Many planners use about 28% of gross income for housing. Your comfort level and other debts matter more than any rule of thumb.
Does the calculator include repairs?
Yes, it adds utilities and a maintenance reserve to show a fuller monthly cost.
Keep reading
Looking at a house and not sure what you are getting into?
Ask for a free Before You Offer review. Send me the listing. I look over the photos, the seller's disclosure, and recent sales, then flag likely condition issues and planning cost ranges before you write an offer.
Request a Before You Offer reviewOr call or text (812) 525-5489, or email john@yourpropertynegotiator.com.
The Before You Offer review is a REALTOR® and contractor review of the listing, not a home inspection. It is for buyers who are not already working with an agent. If you have an agent, please bring these questions to your agent.
Sources
- F.C. Tucker Company central Indiana market data, September 2026, as reported by the Seymour Tribune and Brown County Democrat
- CFPB, Buying a House tools and resources
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.