Mortgage Rates in Knightstown, Indiana — March 2026
Updated March 2026 | Based on Knightstown market data and regional lending conditions
Knightstown is a smaller Indiana community of 28,793 where the housing market reflects local economic conditions. The current 30-year fixed rate here is 6.64% (0.01% below the national average). At a median home price of $220,000, the estimated $1,296/month payment (with 20% down) is affordable on the local median income of $74,000.
Current Mortgage Rates in Knightstown, IN
Below are the current average mortgage rates available in the Knightstown area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.64% | 6.65% | -0.01% |
| 15-Year Fixed | 5.9% | 5.89% | +0.01% |
| 5/1 ARM | 6.19% | 6.15% | +0.04% |
| FHA | 6.45% | 6.25% | +0.2% |
| VA | 6.2% | 6.05% | +0.15% |
| Jumbo | 6.89% | 6.85% | +0.04% |
Knightstown Housing Market Overview
At $220,000, Knightstown offers more affordable housing than most U.S. metros. The local cost of living index is 92.2 (100 = national average), and the median household income of $74,000 provides comfortable purchasing power in this market.
Monthly Payment Breakdown for Knightstown
Based on the median home price of $220,000 with 20% down ($44,000), here is what you can expect to pay monthly in Knightstown:
15-Year vs. 30-Year Mortgage in Knightstown
Choosing a 15-year mortgage in Knightstown at 5.9% instead of a 30-year at 6.64% would save you $140,760 in total interest over the life of the loan. However, your monthly payment would be $1,476 instead of $1,129 — an increase of $347 per month.
Calculate Your Knightstown Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Knightstown
What are the current mortgage rates in Knightstown, IN?
As of March 2026, the average 30-year fixed mortgage rate in Knightstown, Indiana is 6.64%, while the 15-year fixed rate is 5.9%. FHA loans average 6.45% and VA loans 6.2%. These rates are 0.01% below the national average of 6.65%.
How much is a monthly mortgage payment in Knightstown?
Based on the median home price of $220,000 with 20% down, the estimated monthly mortgage payment in Knightstown is $1,129 for principal and interest. Including property taxes of $167/month, the total monthly housing cost is approximately $1,296.
What income do I need to buy a home in Knightstown?
Using the 28% rule, you would need an annual income of approximately $55,543 to afford the median-priced home in Knightstown at $220,000. The median household income in Knightstown is $74,000. The median income is currently sufficient to meet this threshold.
Is Knightstown a good place to buy a home in 2026?
Knightstown offers a below-average cost of living with a cost of living index of 92.2 (national average = 100). The property tax rate in Indiana is 0.91%, which is near the national average. Knightstown has a population of 28,793 and offers a very affordable lifestyle.
Mortgage Rates in Other Indiana Cities
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Last updated: March 2026. Rates are approximate averages based on regional lending data for the Knightstown, Indiana area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.