Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Indiana and Texas. Updated for 2026.
Indiana wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $240K and lower overall costs, Indiana offers meaningful savings compared to Texas. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Indiana saves you approximately $896/month ($10,752/year) compared to Texas, based on median home prices with identical loan terms.
Indiana offers meaningfully lower home prices than Texas, with median prices running 23% less ($70K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Texas may find Indiana far more accessible, particularly when combined with local down payment assistance programs.
Indiana has a moderate property tax advantage at 0.84% versus Texas's 1.8%. While the rate gap of 0.96% may seem small, it translates to an annual difference of approximately $3,564 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $29K in savings.
Homeowners insurance is significantly cheaper in Indiana ($1,700/year) compared to Texas ($3,800/year). That's an extra $2,100 per year — or $175/month — eating into your budget in Texas. Texas's high insurance costs are often driven by severe weather risks (hurricanes, tornadoes, or wildfires), which also affect availability of coverage.
Both states offer down payment assistance for first-time buyers. Indiana's IHCDA Next Home provides Up to 6% DPA, while Texas's TDHCA My First Texas Home offers Up to 5% DPA grant. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: insurance costs heavily tilt the scales. Texas homeowners pay $3,800/year for coverage versus $1,700 in Indiana — a $2,100 annual gap. If you're budgeting for a home in Texas, make sure to factor in this ongoing expense. It can make an otherwise affordable market surprisingly costly month-to-month.