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Buying a home in Iowa
According to Zillow, the typical home value in Iowa is much lower than the typical value of $356,026 across the US. The typical home value in Iowa is $193,295, and home values have increased 11.0% over the past year.
Historic mortgage rates for Iowa
By looking at the average mortgage rates in Iowa since 2010, you can see trends for 30-year fixed mortgages, 15-year fixed mortgages, and 7/1 adjustable mortgages:
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Seeing how today’s rates compare to historic Iowa mortgage rates may help you decide whether you’d be getting a good deal by getting a mortgage or refinancing now.
Mortgage calculator
To see how today’s mortgage rates will affect your monthly payments, use Insider’s free mortgage calculator.
Mortgage Calculator
$1,161
Your estimated monthly payment
- Paying a 25% higher down payment would save you $8,916.08 on interest charges
- Lowering the interest rate by 1% would save you $51,562.03
- Paying an additional $500 each month would reduce the loan length by 146 months
Click on “More details” for tips about how to save money on your mortgage.
Iowa first-time homebuyer programs
The Iowa Finance Authority has several financial assistance programs for first-time homebuyers who borrow from participating lenders:
- FirstHome grant: Depending on your income, you may qualify for a $2,500 grant to put toward a down payment or closing costs. You don’t have to repay the grant.
- FirstHome loan: If you qualify, you can borrow up to 5% of your home purchase price or $5,000, whichever is less. You’ll repay the IFA when you sell the home, refinance your mortgage, or completely pay off your mortgage.
- Homes for Iowans grant: If you don’t qualify for the FirstHome program, you might be eligible for Homes for Iowans. The IFA will give you $2,500, and you don’t have to pay it back.
- Homes for Iowans loan: Borrow up to 5% of your mortgage amount or $5,000 — whichever amount is smaller — for closing costs or a down payment. Repay the loan when you pay off your mortgage, sell, or refinance.
- Military Homeownership Assistance Program: If you’re an active-service military member or a veteran, you may be eligible for a $5,000 grant. You don’t have to pay back the grant, and you can combine this assistance with FirstHome or Homes for Iowans assistance.
- Federal Housing Administration mortgage: You can get a down payment of 3.5% with a credit score of at least 580, or get a mortgage with a credit score between 500 and 580 with 10% down using this loan, which is also called an FHA loan.
- United States Department of Agriculture mortgage: These loans, also called USDA loans, can be useful if you are a low-to-moderate income borrower looking to buy a home in a rural or suburban area.
- Veterans Affairs mortgage: These mortgages, also called VA loans, are for active-service military members or veterans, or spouses of members who have died and can provide lower interest rates than conventional mortgages.
Refinancing your mortgage in Iowa
Rates are at historic lows right now, so it could be worth it to switch your current mortgage for one with a lower rate — especially if the new rate would be significantly lower.
You don’t necessarily need to refinance with the same lender you used for your initial mortgage. A different company may offer you a better deal this time around. Shop around for a lender who will offer the lowest rate based on your credit score and debt-to-income ratio, and the one that charges relatively low fees.
How to get a low interest rate on your mortgage
Here are some tips for landing a good interest rate on your mortgage:
- Save more for a down payment. With a conventional loan, you may be able to put down as little as 3%. But lenders reward a higher down payment with a better interest rate. Mortgage rates should stay low for a while, so you may have time to save a bigger down payment.
- Increase your credit score. Many lenders require a minimum credit score of 620 to receive a mortgage. But you can land a better interest rate with a higher score. The most important factor for boosting your score is to pay all your bills on time.
- Lower your debt-to-income ratio. Your DTI is the amount you pay toward debts each month, divided by your gross monthly income. Most lenders want to see a DTI of 36% or less for a conventional mortgage, but a lower DTI can result in a lower rate. To improve your DTI, pay down debts or consider opportunities to increase your income.
- Choose a federally backed mortgage. If you’re eligible, you might consider a USDA loan (for low-to-moderate income borrowers buying in a rural area), a VA loan (for military members and veterans), or an FHA loan (not designated for any particular group). These loans typically come with lower interest rates than conventional mortgages. As a bonus, you won’t need a down payment for USDA or VA loans.
Improving your financial situation and choosing the right type of mortgage for your needs can help you get the best interest rate possible.
Mortgage and refinance rates by state
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming
