Short answerOn a $220,000 Southern Indiana house with 5% down at a 7.18% example rate, plan on about $1,836 a month for the loan payment, mortgage insurance, property tax, and insurance, and about $2,270 once you add utilities and a maintenance reserve. Your numbers depend on your rate, loan type, county, and the house.
What goes into the monthly cost?
- Principal and interest on the loan.
- Mortgage insurance on conventional loans with less than 20% down, and on most FHA loans. VA loans have none; they have a one time funding fee instead.
- Property tax. Indiana caps property tax on a homestead at 1% of its gross assessed value. Many homes pay less after deductions and credits, which changed in 2025 and 2026. Your county auditor and lender can estimate yours.
- Homeowners insurance. Published Indiana averages for 2026 range widely, from about $1,150 to about $3,100 a year, depending on the source, the house, and the coverage. Get a quote on the actual house.
- Utilities. Ask the seller for 12 months of bills.
- Maintenance. A common planning rule is to set aside about 1% of the home's value each year, more for older houses.
Worked example: a $220,000 house
Assumptions: 7.18% rate, the Freddie Mac weekly average for 30 year fixed loans on November 5, 2026, used for every loan type for comparison only; 30 year term; property tax at the 1% homestead cap as a conservative ceiling; insurance of $1,800 a year; conventional mortgage insurance at an assumed 0.5% a year; FHA at 3.5% down with the 1.75% upfront premium financed and 0.55% annual premium; VA at no money down with the 2.15% first use funding fee financed; utilities of $250 a month and maintenance of 1% a year as placeholders. Your lender's quote replaces all of these.
| Conventional, 20% down | Conventional, 5% down | FHA, 3.5% down | VA, no down payment | |
|---|---|---|---|---|
| Down payment | $44,000 | $11,000 | $7,700 | $0 |
| Principal and interest | $1,192 | $1,416 | $1,463 | $1,522 |
| Mortgage insurance | $0 | $87 | $97 | $0 |
| Property tax | $183 | $183 | $183 | $183 |
| Homeowners insurance | $150 | $150 | $150 | $150 |
| Monthly payment | $1,526 | $1,836 | $1,894 | $1,856 |
| Plus utilities and maintenance reserve | $1,959 | $2,270 | $2,327 | $2,289 |
Run your own numbers
Down payment: · Loan amount:
Principal and interest: · Mortgage insurance: · Property tax: · Insurance:
Monthly payment:
With utilities () and maintenance (): a month
Planning estimate only, not a loan offer. Your lender's Loan Estimate shows your actual payment.
What changes these numbers the most?
- Your rate. Each quarter point on a $209,000 loan changes the payment by roughly $35 a month.
- The house's condition. An old roof or furnace belongs in your budget even if it is not in your payment. Build a five year repair budget.
- Rural homes. Wells and septic systems add their own costs. Well and septic ownership costs.
- Help with the down payment. Indiana down payment assistance.
Selling too? See the other side: what you keep when you sell.
What John sees in the field
The payment is the number lenders talk about. The repairs are the number that surprises people. On older houses, I ask buyers to budget the furnace, water heater, and roof ages before they fall in love with the kitchen.
Insurance quotes on older Southern Indiana houses can vary by hundreds of dollars a year between companies. Get at least two quotes during your inspection period.
Frequently asked questions
What interest rate does this page use?
7.18%, the Freddie Mac weekly average for 30 year fixed loans on November 5, 2026. FHA and VA rates are often different. Use your lender's quote in the calculator.
How much are property taxes on a house in Southern Indiana?
Indiana caps homestead property tax at 1% of gross assessed value, and many homes pay less after deductions and credits. The county auditor's records show the current bill on a specific house.
Does a VA loan have mortgage insurance?
No monthly mortgage insurance. There is a one time funding fee, which many veterans finance into the loan and some are exempt from.
How much should I save for repairs?
A common planning rule is about 1% of the home's value a year, more for older homes. Your inspection report tells you which systems will need money first.
Can I trust this calculator for my loan?
Use it to plan, not to decide. Your lender's Loan Estimate is the document that shows your actual terms.
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
- Freddie Mac Primary Mortgage Market Survey via FRED, 30 year fixed 7.18% (week of November 5, 2026)
- FHA mortgage insurance: 1.75% upfront, 0.55% annual for most borrowers (HUD schedule as reported 2026)
- VA funding fee 2.15% first use with no down payment (VA.gov)
- Indiana homestead 1% property tax cap and 2026 supplemental homestead credit (SEA 1, 2025)
- Indiana homeowners insurance averages, 2026: InsuranceQuotes.com about $1,150; MoneyGeek about $3,136 for $250,000 dwelling coverage
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.