Interest Rate
4.921%
APR*
5.008%
Average home price
$152.885

Your new home might be waiting for you in Iowa. Be sure that you’re informed about Iowa mortgage rates and what lenders will be looking at before you buy. You’ll want to be able to disclose everything about your finances, from your income and down payment ability to your credit score and debt-to-income ratio.

To get the best mortgage rate in Iowa, get a copy of your credit report and make sure there are no surprises. Gather your income and asset documents, and apply for mortgage preapproval with a trustworthy lender prior to starting your house hunt in Iowa.

Here’s a quick look at current Iowa mortgage rates:

Loan Program Mortgage Rate APR* 1 Day Change
Conventional 30 year fixed 4.921% 5.008% +0.06%
Conventional 20 year fixed 4.529% 4.686% Unchanged
Conventional 15 year fixed 4.193% 4.342% +0.11%
Conventional 5 year ARM 4.67% 4.23% +0.3%
FHA 15 year fixed 3.375% 4.376% Unchanged
FHA 30 year fixed 3.903% 4.671% -0.05%
VA 30 year fixed 4.575% 4.846% +0.12%
VA 15 year fixed 3.987% 4.691% Unchanged

Data source: ©Zillow, Inc. Use is subject to the Terms of Use

Buying a Home in Iowa

Iowa is often regarded as the land of corn and pig farming. The Hawkeye State is home to boundless plains and is an agricultural center of the nation.

Iowa’s population is just over 3 million people. Roughly one in six live in the state’s top five cities:

  • Des Moines (state capital)
  • Cedar Rapids
  • Davenport
  • Sioux City
  • Iowa City

House hunting with the intent to buy a home in Iowa can quickly reveal that homes in the state are inexpensive overall. Iowa ranks 49th in US homes for sale at average price, and 45th for homes over $1,000,000. Getting preapproved so your budget isn’t a mystery is a good first step.

First-time Homebuyers

You might benefit from a program administered by the Iowa Finance Authority (IFA) if you’re a first-time homebuyer purchasing a home in Iowa. There is one main program designed especially for FTHBs.

With the IFA FirstHome program, you can get below-market interest rates and fees on several types of mortgages,as well as lower mortgage insurance premiums if you meet income requirements. You can choose between a 25- or 30-year term.

Borrower and property requirements mean you’ll need:

  • A minimum 3% down payment (for conventional loans)
  • A minimum 640 credit score
  • A maximum 45% debt-to-income ratio
  • A completed homebuyer education course

Refinancing in Iowa

Seeing lower Iowa mortgage rates? It could be time to refinance your home in the state. You can do any of the following:

  • Lower your total interest costs over the term of the loan
  • Lower your monthly payment by stretching out your loan term
  • Get your hands on extra month by cashing out equity
  • Get rid of your private mortgage insurance (PMI) mandate

Want a streamlined refinance? This is an option in some cases with the right loan type. Ask your lender for more information.

GUIDES

Buying a Home?

Each step-by-step guide is designed to shepherd you through a process from start to finish. Know what to expect and how to proceed, no matter where you are in your home buying journey.

1 The First Step in Buying a Home – Preapproval

What Is a Mortgage Preapproval? | How Much Will My Monthly Payment Be? | How Much Will My Down Payment Be? | How Long Does a Mortgage Preapproval Last? | What Is the Difference Between a Standard Preapproval and an Underwritten Preapproval?

Read More

3 How much money do I need?

How Can I Lower My Mortgage Payment? | How Can I Lower My Closing Costs? | When Do I Pay Out-Of-Pocket Costs? | What are Prepaid Items or Escrows? | What Will My Closing Costs Be?

Read More

4 The Basics of Mortgage

What Documents Need to be Updated During the Home Loan Process? | What Contingencies Do I Need? | How Important is the Closing Date? | Steps in the Loan Process | Understanding Common Mortgage Terms

Read More

5 Finding a Real Estate Agent

What Are the Top 6 Questions to Ask a Real Estate Agent? | Should I Use the Seller's Real Estate Agent? | Are Online Discount Realty Services a Good Idea? | How Much Does a Buyer's Real Estate Agent Cost? | Why Do I Need a Real Estate Agent to Buy a Home?

Read More
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