Iowa Mortgage Calculator: Estimate Your Monthly Payment
Updated: January 18, 2024
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Iowa has a population of around 3.1 million people. In 2020, approximately 72.1% of Iowa residents own a home.
Iowa has the lowest average monthly mortgage payment in the country, at $970. With a monthly household income of $6,329, Iowa residents spend $189 less than the national average, making it an affordable place to live.
When you’re ready to shop for a mortgage, it’s important to understand what you’ll owe each month. Otherwise, it will be difficult to determine which loan is best for your financial situation. MoneyGeek's mortgage calculator can help you create a monthly estimate of what you'd pay in various scenarios. By seeing how different factors can affect your monthly payment, you'll better understand which mortgage product could work for you.
Start Here: Plug In Your Mortgage Factors
MoneyGeek's Iowa mortgage calculator will give you a holistic estimate of your monthly mortgage payment. MoneyGeek explains the key factors that impact mortgage costs below.
Why and How to Use Our Mortgage Calculator
MoneyGeek's Iowa mortgage calculator considers 12 significant homeownership factors, highlighting how each one affects your mortgage payments. As a result, you may be able to find ways to reduce your monthly mortgage costs.
Some of these factors include the home’s price, your down payment, the interest rate and more.
Our Iowa mortgage calculator is an easy-to-use tool that can help you estimate your monthly payment before talking to a lender. This will help you calculate your monthly payment more easily. To estimate your homeownership costs, you'll need to gather specific data that you can enter into the calculator.
Home Price:
Enter the maximum price you can pay or the amount you'd like your potential home to cost.
Down Payment:
The down payment can be entered either as a fixed amount or a percentage. This amount is used to determine the loan amount. Your monthly payment will be lower if you have a high down payment.
Interest Rate:
The annual interest rate charged by lenders for the money you borrowed. Rates are available using MoneyGeek's daily mortgage rates report. You can also get rates directly from lenders.
Loan Terms:
This is the mortgage loan repayment period. Mortgage terms usually last 15, 20 or 30 years.
Payments per Year:
This is an annual payment frequency. The yearly installments are 12 if paid monthly.
Property Tax:
The yearly tax levied by the municipality on the purchase price of a dwelling. In Iowa, this averages out to $3,407 annually.
HOA Fees:
You will be charged monthly fees for maintenance and amenities if you dwell in a neighborhood that has a homeowners association.
Principal & Interest:
The total of your loan and the interest you owe the lender.
Monthly Payment:
The total due each month, including principal, interest, taxes and HOA fees.
Principal Payment:
The monthly principal payments reduce the mortgage balance.
Interest Payment:
The interest payment is the amount charged by the lender for the mortgage loan.
Total Cost with Interest:
The entire amount due to the lender based on all factors.
- Buy a cheaper home. By opting to buy a less expensive home, you’ll save on your payments.
- Put more money down. Make a more sizable down payment to reduce your monthly mortgage payment.
- Research assistance programs. Consider loan refinance to reduce your interest rates.
- Change the length of your loan term. Extend your loan term to lower monthly repayment bills.
- Buy elsewhere. Be flexible in terms of where you are looking to buy. Considering other locations can save you money.
Next Steps: What to Do After You Have Estimated Your Mortgage Payments
The homebuying journey can be complex. To help you take your next steps, MoneyGeek gathered the necessary information to guide you through your home buying journey.
- Shop & Compare Rates - Before taking out a mortgage, make sure you shop around and get quotes from various mortgage companies. Our Iowa mortgage rates page can help you with additional information.
- Not Ready to Buy? - If you're on the fence about whether to rent or buy a home in Iowa, there are several factors to consider.
- Learn More - Uncertain about the type of mortgage you need? MoneyGeek provides information on several mortgages, including reverse mortgages, VA loans and FHA loans.
Frequently Asked Questions About Mortgages in Iowa
It depends on how much you're comfortable spending on mortgage payments. Mortgage lenders often use the debt-to-income (DTI) ratio to measure affordability. If your DTI is 45% or below, your home loan is considered affordable.
The outstanding mortgage amount in Iowa is $131,494 on average.
A down payment of roughly 20% is required for a conventional loan. Government-backed loans require lower down payments since they use other methods to mitigate possible risks.
You do not need private mortgage insurance (PMI) if you can make a 20% down payment. However, PMI is required if you cannot pay 20% down payments.
The average annual tax in Iowa is $3,407.
The average monthly mortgage payment in Iowa is $970.
The median home price in Iowa is $146,500.
sources
- World Population Review. "Iowa Population 2022." Accessed March 2, 2022.
- FRED. "Homeownership Rate for Iowa (IAHOWN)." Accessed March 2, 2022.