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Iowa Mortgage Rates

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Use SmartAsset's mortgage rate comparison tool to compare mortgage rates from the top lenders and find the one that best suits your needs.

Overview of Iowa Mortgages

If you decide to become a Hawkeye homeowner, know that mortgage rates have historically been higher than the national average. That means Iowa monthly mortgage payments are a bit pricier than those in the rest of the country. Iowa counties’ conforming loan limits are fully standard, as every county is in line with the national limit.

Today's Mortgage Rates in Iowa

Product Today Last Week Change
30 year fixed 6.75% 6.75% 0.00
15 year fixed 4.00% 3.63% +0.38
5/1 ARM 4.63% 2.25% +2.38
30 yr fixed mtg refi 7.49% 7.49% 0.00
15 yr fixed mtg refi 5.13% 5.00% +0.13
7/1 ARM refi 5.25% 5.13% +0.13
15 yr jumbo fixed mtg refi 3.08% 3.12% -0.03

National Mortgage Rates

Source: Freddie Mac Primary Mortgage Market Survey, SmartAsset Research
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Historical Mortgage Rates in Iowa

Photo Credit: ©iStock.com/traveler1116

Iowa Mortgage Rates Quick Facts

  • Median Home Value: $158,900 (U.S. Census Bureau)
  • Loan Funding Rate: 64.37% (CFPB)
  • Homeownership Rate: 72.1% (St. Louis Fed)
  • Median Monthly Homeownership Costs: $1,260 (U.S. Census Bureau)

For the past decade or so, Iowa mortgage rates have been coming in slightly above the national average.

A financial advisor in Iowa can help you plan for the homebuying process. Financial advisors can also help with investing and financial plans, including tax, retirement and estate planning, to make sure you are preparing for the future.

Iowa Historic Mortgage Rates*

YearIowa RateU.S. Rate
20008.067.86
20016.926.94
20026.536.44
20035.665.67
20045.705.68
20055.805.85
20066.476.54
20076.396.42
20086.046.06
20095.025.05
20104.804.81
20114.624.56
20123.543.65
20133.823.84
20144.174.13
20153.943.88
20163.833.73
20174.164.03
20184.744.56

*The FHFA stopped reporting new data in 2018.

Iowa Mortgages Overview

Midwestern real estate is often more affordable than coastal homes, and that’s the case in Iowa too. The median home value sits at $158,900, which is well below the nation’s median of $240,500. Property values vary throughout the state.

Every county in the state has a standard conforming loan limit of $647,200 and FHA loan limit of $420,680, putting Iowa once again at an average rate in line with the rest of the country.

Conforming and FHA Loan Limits by County

CountyConforming LimitFHA Limit
Adair$647,200$420,680
Adams$647,200$420,680
Allamakee$647,200$420,680
Appanoose$647,200$420,680
Audubon$647,200$420,680
Benton$647,200$420,680
Black Hawk$647,200$420,680
Boone$647,200$420,680
Bremer$647,200$420,680
Buchanan$647,200$420,680
Buena Vista$647,200$420,680
Butler$647,200$420,680
Calhoun$647,200$420,680
Carroll$647,200$420,680
Cass$647,200$420,680
Cedar$647,200$420,680
Cerro Gordo$647,200$420,680
Cherokee$647,200$420,680
Chickasaw$647,200$420,680
Clarke$647,200$420,680
Clay$647,200$420,680
Clayton$647,200$420,680
Clinton$647,200$420,680
Crawford$647,200$420,680
Dallas$647,200$420,680
Davis$647,200$420,680
Decatur$647,200$420,680
Delaware$647,200$420,680
Des Moines$647,200$420,680
Dickinson$647,200$420,680
Dubuque$647,200$420,680
Emmet$647,200$420,680
Fayette$647,200$420,680
Floyd$647,200$420,680
Franklin$647,200$420,680
Fremont$647,200$420,680
Greene$647,200$420,680
Grundy$647,200$420,680
Guthrie$647,200$420,680
Hamilton$647,200$420,680
Hancock$647,200$420,680
Hardin$647,200$420,680
Harrison$647,200$420,680
Henry$647,200$420,680
Howard$647,200$420,680
Humboldt$647,200$420,680
Ida$647,200$420,680
Iowa$647,200$420,680
Jackson$647,200$420,680
Jasper$647,200$420,680
Jefferson$647,200$420,680
Johnson$647,200$420,680
Jones$647,200$420,680
Keokuk$647,200$420,680
Kossuth$647,200$420,680
Lee$647,200$420,680
Linn$647,200$420,680
Louisa$647,200$420,680
Lucas$647,200$420,680
Lyon$647,200$420,680
Madison$647,200$420,680
Mahaska$647,200$420,680
Marion$647,200$420,680
Marshall$647,200$420,680
Mills$647,200$420,680
Mitchell$647,200$420,680
Monona$647,200$420,680
Monroe$647,200$420,680
Montgomery$647,200$420,680
Muscatine$647,200$420,680
O’Brien$647,200$420,680
Osceola$647,200$420,680
Page$647,200$420,680
Palo Alto$647,200$420,680
Plymouth$647,200$420,680
Pocahontas$647,200$420,680
Polk$647,200$420,680
Pottawattamie$647,200$420,680
Poweshiek$647,200$420,680
Ringgold$647,200$420,680
Sac$647,200$420,680
Scott$647,200$420,680
Shelby$647,200$420,680
Sioux$647,200$420,680
Story$647,200$420,680
Tama$647,200$420,680
Taylor$647,200$420,680
Union$647,200$420,680
Van Buren$647,200$420,680
Wapello$647,200$420,680
Warren$647,200$420,680
Washington$647,200$420,680
Wayne$647,200$420,680
Webster$647,200$420,680
Winnebago$647,200$420,680
Winneshiek$647,200$420,680
Woodbury$647,200$420,680
Worth$647,200$420,680
Wright$647,200$420,680

Iowa has required real estate disclosures, meaning the seller must disclose that basement flood or leaky roof. But regardless of the laws, it’s still best to opt for a home inspection before officially closing on your home. This will protect buyers from uncovering massive pitfalls after they’ve purchased the property.

Additionally, Iowa is one of a dozen or so states in the country that is non-recourse, which is good news for a worst-case scenario. If you buy a house in Iowa and it later goes into foreclosure, your house could be worth less than what you owe on your mortgage. In a recourse state, the lender could go after your assets to make up for that deficiency. But in a non-recourse state, you typically won’t be held liable to make up that difference.

30-Year Fixed Mortgage Rates in Iowa

Weighing your mortgage options in the Hawkeye State? You’ll probably want to consider a fixed-rate mortgage if you are planning on staying in your home for the long haul. A 30-year fixed-rate mortgage is the most common type of home loan. With this mortgage you have a long time to pay back the loan (30 years) and your interest rate will remain steady throughout that time, unless you refinance. You also have the option of obtaining a 15-year fixed-rate mortgage which comes with a lower interest rate, but the monthly payments for that will be higher.

The average Iowa mortgage rate for a fixed 30-year mortgage is 3.42% (Zillow, Feb. 2022).

Iowa Jumbo Loan Rates

If you need to take out a loan that exceeds that limit, it’s considered a jumbo loan and it will normally be accompanied by a higher interest rate. However, the average jumbo loan rate in Iowa is less than the rate for a normal loan. Iowa homes are less expensive than the average American home, so the jumbo loan limit holds steady at $647,200 in every Iowa county.

The average 30-year fixed jumbo loan rate in Iowa is 3.27% (Zillow, Feb. 2022).

Iowa ARM Loan Rates

An adjustable-rate mortgage (ARM) could be a good option if you are looking to flip the house you buy or if it’s a starter home that you think you will move out of pretty quickly. The main attraction of an ARM is that it offers a lower initial interest rate for a fixed period of time between one and 10 years, depending on the loan’s terms. When that period ends, the rate can change and usually will go up. However, how often it goes up as well as a cap on how high it can get is laid out in the terms. Since you know from the get-go what the highest possible rate is, it is a smart idea to check that it’s something that you can afford if your plans were to suddenly change.

The average rate for a 5/1 ARM in Iowa is 2.31% (Zillow, Feb. 2022).

Iowa Mortgage Resources

If you need assistance buying a home in Iowa, here are some of the options that can help you at any step of the process.

The Iowa Finance Authority has a couple different options for homebuyers, both of which offer 30-year fixed-rate mortgages. First-time homebuyers can look into the FirstHome program, and first and repeat buyers can apply for the Homes for Iowans Program, which helps potential buyers afford a home in Iowa. There are “plus” versions of both of those programs as well, and that adds in a $2,500 grant for a down payment or closing costs.

The Neighborhood Finance Corporation also has several loan and grant opportunities for homeowners in certain lending areas. The NFC offers up to $10,000 in forgivable home improvement funds, up to $2,500 in closing cost assistance, no private mortgage insurance and a competitive fixed interest rate.

Available Resources

ResourceProblem or IssueWho Qualifies
Iowa Finance AuthorityLoan options for any eligible homebuyer, plus down payment assistance programs.Homebuyers who meet income requirements.
Neighborhood Finance CorporationOffers up to $10,000 in forgivable home improvement funds, up to $2,500 in closing cost assistance, no private mortgage insurance and a competitive fixed interest rate.Eligible homebuyers seeking homes in designated lending areas.
USDA Rural Development - Single family loansOffers payment assistance to increase an applicant’s repayment ability.Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; and Not be suspended or debarred from participation in federal programs.

The United States Department of Agriculture Rural Development program also offers loan help and mortgage grants throughout the country. The program aims to help develop more rural areas of a state while offering safe, affordable housing for residents. Iowa has grants and loans available for home repairs as well as loan assistance programs for those who qualify.

Iowa Mortgage Taxes

Homeowners are allowed to deduct the mortgage interest they pay when they file their federal income taxes and this deduction applies for Iowa state income taxes as well. You can double your deductions for the qualifying mortgage interest payments you have made in the tax year by including it on both state and federal filings.

Also keep in mind that Iowa charges taxes on real estate property title transfers. The real estate transfer tax for Iowa is $1.60 per $1,000, with the first $500 being exempt. In Iowa transactions, the seller typically pays this fee.

Iowa Mortgage Refinance

Refinancing can help cut thousands of dollars off your overall mortgage. Iowans hoping to refinance have options. The Neighborhood Finance Corporation also offers a refinance program in its NFC lending areas. You also always have the option of returning to the lender who issued your current mortgage and comparing the rates with other lenders, in order to land on a new plan that is the best fit for your current situation.