Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Indiana and Vermont. 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 Vermont. 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 $1,233/month ($14,796/year) compared to Vermont, based on median home prices with identical loan terms.
Indiana offers meaningfully lower home prices than Vermont, with median prices running 37% less ($140K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Vermont may find Indiana far more accessible, particularly when combined with local down payment assistance programs.
Property taxes are dramatically different: Indiana charges 0.84% while Vermont charges 1.9%, a gap of 1.06 percentage points. On the respective median homes, this means Vermont homeowners pay roughly $7,220 per year in property taxes versus $2,016 in Indiana. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Insurance costs favor Vermont at $1,100/year versus $1,700/year in Indiana, a difference of $600 annually. While not the largest cost factor, this adds up to over $6K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Closing costs are a one-time but significant expense. Vermont averages $6K in closing costs (1.6% of purchase price) while Indiana averages $3K (1.1%). Much of Vermont's higher costs come from its 1.45% transfer tax, which adds $6K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. Indiana's IHCDA Next Home provides Up to 6% DPA, while Vermont's VHFA MOVE Mortgage offers $5K–$15K DPA. 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: Indiana homes cost $140K less than Vermont on average. That translates to roughly $1,233 less per month in total housing costs if you choose Indiana. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.