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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 3.29% 3.29% 0.00
15 year fixed 2.41% 2.38% +0.03
5/1 ARM 2.25% 2.25% 0.00
30 yr fixed mtg refi 3.15% 3.05% +0.11
15 yr fixed mtg refi 2.40% 2.25% +0.15
7/1 ARM refi 3.63% 3.63% 0.00
15 yr jumbo fixed mtg refi 2.50% 2.50% -0.00

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: 63.63% (CFPB)
  • Homeownership Rate: 69.5% (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 $548,250 and FHA loan limit of $356,362, 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$548,250$356,362
Adams$548,250$356,362
Allamakee$548,250$356,362
Appanoose$548,250$356,362
Audubon$548,250$356,362
Benton$548,250$356,362
Black Hawk$548,250$356,362
Boone$548,250$356,362
Bremer$548,250$356,362
Buchanan$548,250$356,362
Buena Vista$548,250$356,362
Butler$548,250$356,362
Calhoun$548,250$356,362
Carroll$548,250$356,362
Cass$548,250$356,362
Cedar$548,250$356,362
Cerro Gordo$548,250$356,362
Cherokee$548,250$356,362
Chickasaw$548,250$356,362
Clarke$548,250$356,362
Clay$548,250$356,362
Clayton$548,250$356,362
Clinton$548,250$356,362
Crawford$548,250$356,362
Dallas$548,250$356,362
Davis$548,250$356,362
Decatur$548,250$356,362
Delaware$548,250$356,362
Des Moines$548,250$356,362
Dickinson$548,250$356,362
Dubuque$548,250$356,362
Emmet$548,250$356,362
Fayette$548,250$356,362
Floyd$548,250$356,362
Franklin$548,250$356,362
Fremont$548,250$356,362
Greene$548,250$356,362
Grundy$548,250$356,362
Guthrie$548,250$356,362
Hamilton$548,250$356,362
Hancock$548,250$356,362
Hardin$548,250$356,362
Harrison$548,250$356,362
Henry$548,250$356,362
Howard$548,250$356,362
Humboldt$548,250$356,362
Ida$548,250$356,362
Iowa$548,250$356,362
Jackson$548,250$356,362
Jasper$548,250$356,362
Jefferson$548,250$356,362
Johnson$548,250$356,362
Jones$548,250$356,362
Keokuk$548,250$356,362
Kossuth$548,250$356,362
Lee$548,250$356,362
Linn$548,250$356,362
Louisa$548,250$356,362
Lucas$548,250$356,362
Lyon$548,250$356,362
Madison$548,250$356,362
Mahaska$548,250$356,362
Marion$548,250$356,362
Marshall$548,250$356,362
Mills$548,250$356,362
Mitchell$548,250$356,362
Monona$548,250$356,362
Monroe$548,250$356,362
Montgomery$548,250$356,362
Muscatine$548,250$356,362
O’Brien$548,250$356,362
Osceola$548,250$356,362
Page$548,250$356,362
Palo Alto$548,250$356,362
Plymouth$548,250$356,362
Pocahontas$548,250$356,362
Polk$548,250$356,362
Pottawattamie$548,250$356,362
Poweshiek$548,250$356,362
Ringgold$548,250$356,362
Sac$548,250$356,362
Scott$548,250$356,362
Shelby$548,250$356,362
Sioux$548,250$356,362
Story$548,250$356,362
Tama$548,250$356,362
Taylor$548,250$356,362
Union$548,250$356,362
Van Buren$548,250$356,362
Wapello$548,250$356,362
Warren$548,250$356,362
Washington$548,250$356,362
Wayne$548,250$356,362
Webster$548,250$356,362
Winnebago$548,250$356,362
Winneshiek$548,250$356,362
Woodbury$548,250$356,362
Worth$548,250$356,362
Wright$548,250$356,362

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 2.94% (Zillow, Jan. 2021).

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 $548,250 in every Iowa county.

The average 30-year fixed jumbo loan rate in Iowa is 2.52% (Zillow, Jan. 2021).

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 3.21% (Zillow, Jan. 2021).

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.

Best Places To Get A Mortgage

SmartAsset’s interactive map highlights the best counties in the U.S. (and in each state) for securing a home mortgage. Hover over states and counties to see rankings and data points for each region, or use the map’s tabs to view the top counties for each of the factors included in our analysis.

Worst
Better
Rank County Loan Funding Rate 5 Year Borrowing Costs Property Tax Annual Mortgage Payment

Methodology In order to determine the best places in the country to get a mortgage, our study compared four factors, including overall borrowing costs, likelihood of securing a mortgage, property taxes and annual mortgage payments.

To calculate the overall borrowing costs, we analyzed the expected costs throughout the first five years for a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to mortgage originations (secured mortgages) in each county. Annual mortgage payments are a measure of the annual principal and interest payments for a $200,000 loan in that location using average mortgage rates in each county.

Finally, we ranked locations based on these four factors, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.

Sources: Mortgage Bankers Association, US Census Bureau 2018 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset