Mortgage Refinance in Indiana
Indiana charges no tax on a new mortgage and no transfer tax, so an Indiana refinance closes for the lender’s and title company’s fees and tends to pay for itself sooner than in most states. We put every cost in the break-even before you commit, price every refinance type side by side, and are licensed statewide, in all 92 counties, closing at a title company near you.
Indiana-DFI Mortgage Lending License 59609. NMLS #1925352.
Refinancing in Indiana, 2026
State taxes on the new loan
None
Homestead deduction
Carries on through a refinance
Cash-out
Up to 80% on FHA and most conventional (primary residence); VA higher
Streamlines
FHA Streamline and VA IRRRL, usually no appraisal
Closing
Title company near you, or a mobile notary
$0
Indiana tax on a new mortgage
80%
Maximum cash-out loan-to-value, conventional and FHA
92
Indiana counties, licensed statewide
4.9
Average of 5,300+ Google reviews
Why an Indiana refinance pays for itself sooner than most.
A refinance pays for itself when the monthly saving has covered the closing costs, and Indiana’s closing costs are lower than in states that tax the sale or the loan, because Indiana taxes neither. The new mortgage records for a county fee of a few dollars a page, and there is no deed, so nothing from the purchase side comes back either. What remains is the lender’s charges, a new lender’s title policy, the title company’s settlement fee and an appraisal where one is needed. We show you the month your refinance breaks even, and if it is further out than you plan to keep the home, we say so.
Three things make an Indiana refinance worth running the numbers on. Price growth in Hamilton County, the Indianapolis suburbs and northern Indiana has given many owners who bought with FHA the equity to refinance into a conventional loan and drop mortgage insurance for good. A cash-out refinance can pay for a finished basement, a new roof, debt consolidation or the down payment on a rental, at a mortgage rate. And a homeowner with a VA or FHA loan has a streamline option that skips the appraisal and most of the paperwork, with no state tax on the new loan to lengthen the break-even.
This page covers refinancing in Indiana. For the state as a whole, see our Indiana page; for the refinance process itself, see the refinance hub and the cash-out hub. If you are buying rather than refinancing, buying in Indiana is the page you want, and FHA in Indiana and VA in Indiana cover the streamlines in depth.
Three kinds of Indiana refinance, and when each makes sense.
Lower the rate or the term, pull equity out, or replace an FHA or VA loan with less paperwork. None of them carries a state tax.
Lower payment
Rate-and-term refinance
Replace your loan with a lower rate, a shorter term or a fixed payment, with as little as 5 percent equity on a conventional loan. The usual Indiana reason is dropping FHA mortgage insurance once you reach 20 percent equity; we show the new payment beside the old one with every closing cost in the estimate.
Use equity
Cash-out refinance
Borrow up to 80 percent of the home’s value on a conventional or FHA loan, more on VA, and take the difference in cash. Common uses in Indiana: a finished basement, a new roof, debt consolidation, a down payment on a rental or a lake cottage. With no state tax on the loan, the size of the cash-out does not change the closing costs much.
Less paperwork
FHA Streamline and VA IRRRL
If you already have an FHA or VA loan, the streamline replaces it at a lower rate with no appraisal and, in most cases, no income verification, as long as the new loan gives you a real benefit. With no Indiana tax on the new mortgage, the title company’s fee and the lender’s costs are the whole bill.
What each refinance needs, and what Indiana adds.
Program rules are federal; the last column is what changes in Indiana. Your pro tells you which fits your file.
| Refinance | Equity, credit and appraisal | In Indiana |
|---|---|---|
| Conventional rate-and-term | From 5% equity, 620 score, appraisal usually required; mortgage insurance you can ask to cancel at 80% of the original value | No state tax on the loan; the title company’s settlement fee and a new lender’s title policy are the main third-party costs |
| Conventional or FHA cash-out | Keep 20% equity on a primary residence (lower caps on second homes and rentals); 620 conventional, 580 FHA; appraisal required | Costs do not rise with the loan amount the way they do in states that tax the mortgage |
| FHA Streamline | Existing FHA loan at least 210 days old with six payments; no appraisal; net tangible benefit test | No state tax; part of the original upfront premium is refunded toward the new one |
| VA IRRRL | Existing VA loan; 0.5% funding fee; no appraisal or income verification in most cases | No state tax; the funding fee is exempt if you receive VA disability compensation |
| VA cash-out | Up to 100% of value under VA rules, most lenders cap at 90%; full underwriting | Can replace a non-VA loan; the funding fee is 2.15% on first use or 3.3% after, exempt if you receive VA disability compensation |
Indiana charges no tax on the mortgage and no transfer tax on a refinance, because no deed is recorded. The new loan records for a county fee only, on every refinance type.
Dropping FHA mortgage insurance is the most common Indiana refinance.
A large share of recent first-time buyers in Indianapolis, Fort Wayne, South Bend and the Region used FHA, and with less than 10 percent down FHA’s annual mortgage insurance never goes away on its own. Price growth has pushed many of them past 20 percent equity, which is the point where a conventional refinance removes the premium for good. On a $250,000 loan that is roughly $115 a month, before any rate change.
The arithmetic has to beat only the lender’s charges, a new lender’s title policy and the title company’s fee, not a state tax, which is why the break-even here is often under two years when the premium saving is the main reason. If rates are higher than your current one, we show you whether the premium saving still wins. Either way you see the break-even month before anything is ordered.
The Region to the Ohio River
Refinances closed at an Indiana title company near you, or with a mobile notary at your kitchen table.
Six Indiana details on a refinance file.
These decide what an Indiana refinance costs and how it closes. All of them are on your Loan Estimate from the start.
01
No tax on the loan
Indiana has no recordation, intangible or mortgage tax, so the new loan records for a county fee only. That is the main reason an Indiana refinance costs less than one in Tennessee, Georgia or Florida.
02
No transfer tax
There is no transfer tax in Indiana on a sale, and a refinance records a mortgage rather than a deed in any case.
03
Title company
Indiana refinances close at a title company, which issues the new lender’s policy and disburses the payoff. We coordinate the closing package with their office, and a mobile notary can bring the signing to you.
04
The appraisal
Required on most refinances except streamlines. Values in Hamilton County and the Indianapolis suburbs moved quickly, so a recent sale on your street can change what you qualify for.
05
Homestead deduction stays
Refinancing does not affect your homestead deduction or the 1 percent cap. The new lender sets up an escrow for the next instalment and the old escrow is refunded after payoff.
06
The right of rescission
When the refinance is secured by your principal residence, federal law gives you three business days to cancel, counted under federal rules from closing and delivery of the required notices, and the payoff funds once that period passes. A refinance with your current lender is covered only as to new money advanced, and a second home or rental has no waiting period. The payoff funds once that period ends.
When does an Indiana refinance pay for itself?
Enter your current loan and the new rate. Add the lender, title and settlement fees, with no state tax to include, and the calculator shows the break-even month.
The U.S. mortgage market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. Your refinance rate and APR depend on your credit, equity, loan type and the day you lock.
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
VA 30-year fixed, U.S. average
7.09%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date.
How an Indiana refinance works with us.
Four steps, one licensed pro, and a closing at an Indiana title company near you.
1
The break-even first
Your current loan, the new rate and every closing cost in one estimate with the month the refinance pays for itself.
2
The right refinance, priced side by side
Rate-and-term, cash-out, FHA Streamline or VA IRRRL compared for your file.
3
Appraisal and title
Appraisal ordered early where one is needed, and the title work started as soon as the application is in.
4
Close near you
At an Indiana title company near you or with a mobile notary; the payoff funds after the three-business-day cancellation period that applies to a principal residence. If you would rather sit across a desk, our Troy office is a short drive from northern Indiana.
Ready to see your Indiana break-even?
An Indiana-licensed pro shows you the new payment, every cost, and the month the refinance pays for itself. Free, and it starts without a hard credit pull.
Refinancing in Indiana, answered.
The questions Indiana homeowners ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
What does an Indiana refinance cost?
The lender’s fees, a new lender’s title policy, the title company’s settlement fee, an appraisal where one is required, and prepaid interest and escrow. There is no state tax on the new loan. On a $250,000 refinance plan on roughly $3,000 to $4,500 in total, depending on the lender’s charges and whether an appraisal is needed. Your actual costs are itemized on the Loan Estimate before you commit.
Does Indiana charge any tax on a refinance?
No. Indiana has no transfer tax and no tax on recording a mortgage. A refinance pays county recording fees of a few dollars a page and nothing more to the state.
How much equity do I need?
About 5 percent for a conventional rate-and-term refinance, and on a primary residence you generally keep 20 percent equity after an FHA or conventional cash-out; second homes and rentals are capped lower. VA cash-out can go higher under VA rules, though most lenders cap it at 90 percent. FHA Streamlines and VA IRRRLs usually need no appraisal at all.
Will refinancing affect my homestead deduction?
No. The homestead deduction and the 1 percent cap stay with the home as long as you own and live in it. Refinancing changes the loan, not the assessment.
Can I refinance to get rid of FHA mortgage insurance?
Yes, and it is the most common Indiana refinance. Once you have about 20 percent equity, a conventional refinance removes the premium for good, and with no state tax on the new loan the break-even is often under two years. We show you the saving beside the closing costs before anything is ordered.
Do I have to come to Michigan?
No. Your licensed pro handles the refinance by phone, email and e-signature, and the closing is at an Indiana title company near you or with a mobile notary. Our Troy office is close enough to visit if you prefer.
Talk to a Indiana-licensed pro about refinancing.
Tell us what you are looking to do and where in Indiana. A licensed pro will call back, usually the same business day. Asking does not start a loan or require a hard credit pull.
Prefer to talk?
248-416-1361
Open 24/7. Ask for your pro by name.
Visit our office
880 W. Long Lake Rd, Suite 300
Troy, Michigan 48098, just off I-75. Free parking.
Licensed and reviewed
Indiana-DFI Mortgage Lending License 59609. NMLS #1925352. Rated 4.9 across 5,300+ Google reviews.