Today's Mortgage Rates in Iowa

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Updated: July 16, 2024

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Today's mortgage rate in Iowa is 6.95% for a 30-year fixed-rate mortgage, which is higher than the national average of 6.90%. Iowa homebuyers can take advantage of the FirstHome Program and the Homes for Iowans Program, which are designed to help reduce mortgage costs.

We'll help you understand today's 30-year mortgage rate in Iowa, including how different loan types can have varying rates. We explain the differences between an interest rate and an annual percentage rate (APR) and provide insight into how your credit score affects the rates available to you, allowing you to navigate your mortgage options confidently. Information about the variety of mortgage types available, how rate structures work and details on lenders and mortgage programs will equip you to make well-informed decisions for your home financing needs.

MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot of rates to analyze rate information for Iowa. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources.

Unless specifically noted otherwise, rates featured in the content are annual percentage rates (APRs).

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This data was last updated on July 2, 2024.

Current Mortgage Rates in Iowa

As of July 2024, the current mortgage rate in Iowa for a 30-year fixed mortgage is 6.95%, up from 6.54% the previous month. A change like this could mean that on a $250,000 loan with a 20% down payment, you might see a difference in the total cost of about $19,613 over the life of the loan. This does not consider additional expenses like property taxes or HOA fees.

Even modest movements in rates have significant financial implications. The line chart below displays the trend in rates over the past several months, reflecting changes that affect your monthly payments.

Current Mortgage Rates in Iowa (Jan to May)

Understanding the current mortgage rate in Iowa can help you budget as rates adjust often, impacted by economic shifts and interest rate changes set by the Federal Reserve.

Who Needs to Know Current Mortgage Rates in Iowa?

First-time buyers and those refinancing will find value in understanding today's mortgage interest rates in Iowa amid the shifting housing market.

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    First-time homebuyers

    First-time homebuyers in Iowa can benefit from knowing current mortgage rates to gauge what lenders offer and to check rate competitiveness.

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    Homeowners with mortgages

    Iowa homeowners can use knowledge of current mortgage rates to consider a mortgage refinance if new rates are lower.

Purchase rates often differ from refinance rates. In Iowa, the average APR for a 30-year fixed-rate mortgage is 6.95%, while the refinance APR for the same loan type is higher at 7.90%. Always keep an eye on the current mortgage rate movements as they directly impact your monthly payments.

Current Mortgage Rates in Iowa by Loan Type

A 30-year fixed-rate mortgage in Iowa has higher interest rates than a 15-year fixed-rate mortgage. Longer loan terms mean the lender faces more uncertainty over time, such as economic shifts or financial changes that increase the risk of lending for that long.

Explore different mortgage loan types in Iowa to see what fits best with your financial planning. A mortgage calculator can guide you on monthly payments and how much interest you'll pay over the life of the loan.

Data filtered by:Results filtered by:
Loan Type:
Loan Type:10-Year Fixed
5.81%APR5.98%
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INTEREST RATE VS. APR: WHAT'S THE DIFFERENCE?

The interest rate on a mortgage is the percentage of the loan amount you pay annually for borrowing money. In Iowa, the average mortgage interest rate for a 30-year fixed loan is 6.92%.

The APR, or annual percentage rate, reflects the yearly cost of your loan, including the interest rate and additional fees such as mortgage points. The average APR for a 30-year fixed mortgage in Iowa is 6.95%, giving you a clear picture of the overall cost.

Current Mortgage Rates in Iowa by Credit Score

If you have a credit score of 740 or higher and plan to make a down payment between 5% and 20%, the average APR for a 30-year fixed mortgage in Iowa is 7.70%. If your score is below 680, the rate climbs to an average of 8.03%.

Your credit score and down payment directly impact the mortgage rates you may qualify for in Iowa. Our interactive table will show you the possible rates based on your situation.

Data filtered by:Results filtered by:
Credit Score Range:
Credit Score Range:680 - 740
Down Payment:
Down Payment:20% or higher
15-year FixedAPR6.30%
20-year FixedAPR6.88%
30-year FixedAPR7.11%
5-year ARMAPR8.22%
7-year ARMAPR8.27%

Mortgage Types in Iowa

In July 2024, 30-year fixed-rate VA loans have the lowest average APR for 30-year fixed-rate mortgages in Iowa at 6.29%. Understanding your options helps you make better decisions that impact your monthly payments and the overall cost of your home. These are the various mortgage loan types available in Iowa:

Mortgage Type
Definition
Impact on Rates
30-Year Rates in Iowa

Conventional Loans

Conventional loans in Iowa are a standard financing option not secured by the government.

Credit history and down payment size can influence rates on conventional loans, potentially leading to variations.

6.95%

FHA Loans

FHA loans in Iowa are backed by the Federal Housing Administration and are designed for borrowers with low to moderate income.

FHA loans may offer lower rates for individuals with lower credit scores compared to conventional loans.

7.04%

VA Loans

VA loans in Iowa are available to military service members, veterans and their spouses and are backed by the Department of Veterans Affairs.

VA loans typically offer competitive rates due to government backing, which reduces the lender's risk.

6.29%

USDA Loans

USDA loans in Iowa are for rural homebuyers and are guaranteed by the United States Department of Agriculture.

USDA loans often provide lower rates due to government backing aimed at developing rural areas.

currently unavailable

Jumbo Loans

Jumbo loans in Iowa are for amounts exceeding conforming loan limits set by the Federal Housing Finance Agency.

Rates for jumbo loans may be higher as they represent a greater risk to lenders due to the larger amounts.

6.82%

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MORTGAGE RATE STRUCTURES IN IOWA

Mortgage rates in Iowa feature two main types: fixed and adjustable.

  • Fixed mortgage rates lock in your rate for the life of the loan, which stabilizes your monthly mortgage payments.
  • Adjustable mortgage rates may start lower than fixed rates and fluctuate with market conditions, potentially lowering your initial payments.

As of July 2024, the average APR for a 30-year fixed-rate loan in Iowa is 6.95% and 7.59% for a 7-year ARM.

Mortgage Lenders in Iowa

First Midwest Bank, Lower and Loan Depot are solid options for securing a mortgage in Iowa. They have been filtered based on state availability, Better Business Bureau accreditation and their homeowner assistance offerings. Note that our list isn't exhaustive, and other lenders in Iowa may suit your needs.

The mortgage rate you get in Iowa can vary depending on the lender you choose. Lenders offer diverse mortgage products and terms, which include differing mortgage rates. Comparing offers from several lenders can help you secure the best rate for your mortgage.


  • First Midwest Bank
    • 8Number of Mortgage Options
    • YesOnline Application
    • A+BBB Rating
    • Monday to Friday, 8 am to 7 pm ET Saturday, 8 am to 1 pm ETCustomer Service Hours

    In Iowa, First Midwest Bank provides a suite of mortgage options accessible online and in person. Notable choices include the Community Experts and Heroes loans, with the former requiring a credit score of 720. Community experts can take advantage of 0% down financing, while Community heroes may only need a 1% down payment — a big leg up for those serving their communities.

    First Midwest Bank ensures customers can receive assistance during flexible hours. Services are available Monday to Friday from 8 a.m. to 7 p.m. ET and Saturday from 8 a.m. to 1 p.m. ET. In-person and phone support cater to different preferences for managing mortgage concerns. The lender also offers programs like Home Manager and Down Payment Assistance, which aid homeowners in navigating the financial demands of property ownership.

    Pros

    • Prequalification online available
    • Construction loan options
    • Interactive tools for guidance

    Cons

    • Limited to seven states
    • Credit requirements unclear
    • FAQ focuses on online management
    First Midwest Bank

  • Lower.com
    • 5Number of Mortgage Options
    • YesOnline Application
    • A+BBB Rating
    • Monday to Friday, 9 am to 5 pm ETCustomer Service Hours

    Available solely through its online platform, Lower offers convenience in securing a mortgage in Iowa. It presents a slate of mortgage options, including conventional and FHA loans, catering to a diverse pool of borrowers. Its FHA loans cater to those with credit scores starting at 580, making homeownership more accessible. Conventional loans offer competitive advantages for those with stronger credit.

    Lower's borrowers can access customer service via phone or text from 9 a.m. to 5 p.m. ET during the work week, ensuring assistance is at your fingertips. It also offers an innovative homeowners assistance program called Buy Before You Sell, which may provide unique opportunities for homeowners looking to move into their next home seamlessly. Lower stands out as the top home equity line of credit lender for most states, based on MoneyGeek's analysis — a testament to its broad appeal among various credit profiles.

    Pros

    • Online prequalification available
    • A+ BBB-accredited business
    • Available program to buy before selling your home

    Cons

    • Online application not entirely virtual
    • No unique mortgage products
    • No in-person support options
    Lower.com

  • Loan Depot
    • 3Number of Mortgage Options
    • YesOnline Application
    • A+BBB Rating
    • Monday to Friday, 10 am to 9 pm ETCustomer Service Hours

    Loan Depot offers various mortgage options for borrowers in Iowa, including fixed-rate and adjustable-rate loans. You can also explore government-backed options like FHA and VA loans if they better suit your needs. Its services are available online and in person, accommodating the preferences of a wide range of customers. The minimum credit requirement for its FHA loans is 580, making it accessible for many first-time homebuyers.

    To get started with Loan Depot, you need a minimum down payment of 5% for conventional loans. However, if you opt for an FHA loan and your credit score is under 580, the down payment requirement goes up to 10%. The lender supports you along the way with customer service available Monday to Friday, 10 a.m. to 9 p.m. ET, through phone and email. It also offers helpful programs like Loss Mitigation Assistance to support homeowners facing financial challenges, ensuring a supportive borrowing experience.

    Pros

    • Provides hardship loan assistance
    • Interactive mortgage calculator available
    • Online prequalification possible

    Cons

    • No unique mortgage products
    • No weekend customer support
    Loan Depot

Mortgage Programs in Iowa

Owning a home brings hidden costs beyond the monthly mortgage, impacting your budget. In Iowa, the Iowa Finance Authority provides mortgage programs to support homebuyers.

Program
Content

FirstHome Program

The FirstHome Program offers low mortgage rates for eligible buyers, with down payments as low as 3%. It is ideal for first-time buyers or military members in certain areas, with income and house price limits applied. Participants may receive a $2,500 grant and a no-monthly-payment loan of up to 5% of the purchase price, to be paid back under specified conditions.

Homes for Iowans Program

The Homes for Iowans Program assists first-time and repeat buyers with lower rates and down payments starting at 3%. Eligibility depends on income and house cost with additional support to tackle closing costs and down payment. A loan for up to 5% of the home sale price, repayable upon selling or refinancing, is available, alongside compulsory homebuyer education.

Military Homeownership Assistance Program

The Military Homeownership Assistance Program thanks Iowa's service persons with a $5,000 grant for down payments and closing costs. Compatible with FirstHome or Homes for Iowans programs, this grant calls for prior service requirements, lender coordination and residency commitments to qualify.

FAQ: Mortgage Rates in Iowa

Understanding today's mortgage rates in Iowa can significantly impact your home-buying process. We've addressed common questions borrowers have about securing a mortgage, ensuring you have the information you need to make informed decisions.

What are the current mortgage rates in Iowa?
How do mortgage rates in Iowa compare to national rates?
How does my credit score impact the mortgage rates I get in Iowa?
Are there any special mortgage programs in Iowa to help homebuyers?
How can I get the best possible mortgage rate in Iowa?
What are today's mortgage refinance rates in Iowa?
How do I calculate my mortgage payments?

About Zachary Romeo

Zachary Romeo headshot

Zachary Romeo is the Head of Loans and Banking at MoneyGeek, with over 10 years of experience and forthcoming certification as a Commercial Banking and Credit Analyst (CBCA). Previously, he led production teams for some of the largest online informational resources in higher education.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt through people-first content.

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