Mortgage rates in Iowa
30-yr fixed 7.18% · Freddie Mac PMMS, week of Nov 5, 2026 · APR benchmark 7.19% (APOR for locks from Nov 9, 2026) · Last reviewed Oct 18, 2026 by the Editorial Team
Iowa combines low home prices with above-average property-tax rates.
Mortgage rates today by loan type
These are national averages. Lenders in Iowa price off the same national market, so treat them as a benchmark: your quote depends on your credit, down payment, loan size and points. The APR benchmark folds in typical points and fees, so it shows what a prime borrower's APR looks like this week.
| Loan type | Avg rate | APR benchmarkAPOR | Source · as of | What it measures |
|---|---|---|---|---|
| 30-year fixed | 7.18% | 7.19% | Freddie Mac PMMSNov 5, 2026 | Conventional purchase loans, 20% down, strong credit; weekly survey |
| 20-year fixed | 6.66% | 6.93% | Zillow (via NerdWallet)Nov 6, 2026 | Lender-quoted average; checked by hand every two weeks |
| 15-year fixed | 6.57% | 6.67% | Freddie Mac PMMSNov 5, 2026 | Conventional purchase loans, 20% down, strong credit; weekly survey |
| 10-year fixed | 6.31% | 6.82% | Zillow (via NerdWallet)Nov 6, 2026 | Lender-quoted average; checked by hand every two weeks |
| 5-year ARM | 6.73% | 6.67% | Zillow (via NerdWallet)Nov 6, 2026 | Fixed for 5 years, then adjusts; APOR = prime ARM benchmark |
| 7-year ARM | — | 6.50% | APOR, locks from Nov 9, 2026 | No free rate series; APOR benchmark only |
| 10-year ARM | — | 6.63% | APOR, locks from Nov 9, 2026 | No free rate series; APOR benchmark only |
| FHA 30-year | 6.89% | — | Optimal Blue OBMMINov 5, 2026 | Locked FHA loans, all credit profiles; daily |
| VA 30-year | 6.71% | — | Optimal Blue OBMMINov 5, 2026 | Locked VA loans; daily |
| USDA 30-year | 6.86% | — | Optimal Blue OBMMINov 5, 2026 | Locked USDA loans; daily |
| Jumbo 30-year | 7.25% | — | Optimal Blue OBMMINov 5, 2026 | Locked loans above the conforming limit; daily |
APR benchmark = FFIEC/CFPB Average Prime Offer Rate for rate locks in the week starting Nov 9, 2026 (published in advance): a prime borrower's APR including typical points and fees. It is not a quote; your APR depends on credit, down payment and the points you pay. APOR is not published for FHA, VA, USDA or jumbo loans.
Calculate your Iowa mortgage payment
The calculator starts from Iowa's median list price, 20% down, the state's 1.33% effective property tax, its median insurance premium and its average closing costs. Switch to FHA or VA, change the down payment, or pick your county to set its conforming limit. For the month-by-month split of principal and interest, open the full amortization schedule. To see how Iowa's property tax and insurance compare with every other state, try the mortgage calculator with taxes and insurance.
Iowa vs. the U.S.
Iowa's median list price is 32% below the U.S. median, so at the same 7.18% rate the principal and interest on a 20%-down loan runs $718 a month less. Five-year price growth here was the 16th-slowest of 51 jurisdictions.
| Measure | Iowa | U.S. |
|---|---|---|
| Median list priceRealtor.com, Oct 2026 | $282,500 | $415,000 |
| Principal + interest, 20% down30-yr avg 7.18% | $1,531 | $2,249 |
| Average home-purchase loanHMDA 2025 | $239,550 | $404,828 |
| Average closing costsincl. transfer taxes | $1,640 | $4,661 |
| Median conventional rate paid2025 purchase loans | 6.38% | 6.50% |
| Mortgage approval rateHMDA 2025 | 84.2% | 76.6% |
| Home values, 1 yearFHFA index, Q2 2026 | +3.2% | +3.0% |
| Home values, 5 yearsFHFA index, Q2 2026 | +37.4% | +41.3% |
What Iowa borrowers actually paid in 2025
This is the state-specific part. Federal HMDA records show the rate and costs on every Iowa home-purchase loan closed in 2025. We compare like with like: 30-year fixed, first-lien, one-unit primary homes. On conventional loans, Iowa borrowers paid 0.22 percentage points below the market benchmark at lock, the lowest of all 50 states and the District of Columbia.
| 2025 purchase loans | Median rateIA · U.S. | Over benchmarkIA · U.S. | Closing costsIA · U.S. | Paid pointsshare of loans | Median downequity on refis · IA |
|---|---|---|---|---|---|
| Conventional 30-yr fixed (conforming, 20%+ down)6,546 loans | 6.38%6.50% | −0.22+0.02 | $2,411$5,476 | 27.3%53.2% | 22.2% |
| FHA 30-yr fixed3,337 loans | 6.50%6.25% | +0.66+0.42 | $7,413$11,291 | 43.9%59.3% | 3.5% |
| VA 30-yr fixed2,264 loans | 6.25%6.13% | −0.28−0.36 | $4,237$6,554 | 44.2%59.3% | 0% |
| Conventional rate-and-term refinance1,327 loans | 6.13%6.38% | −0.21−0.06 | $2,162$4,390 | 26.6%45.4% | 30.2% |
Source: 2025 HMDA loan-level records (FFIEC/CFPB), medians. "Over benchmark" = rate spread, the APR minus APOR on the lock date, which removes the effect of when each loan locked. Closing costs = total loan costs on the Closing Disclosure. HMDA has no credit scores, so these are what borrowers paid, not what you will be offered. See the lenders active in Iowa and what their borrowers paid.
Iowa's biggest conventional lenders: what their borrowers paid
The 8 largest conventional lenders in Iowa by 2025 purchase loans, out of 525 that made one. Each row is the median for that lender's comparable loans here: 30-year fixed, conforming, 20% or more down. A lower figure over the benchmark means cheaper pricing for the same week.
| Lender | 2025 loansshare in IA | Median rate | Over benchmark | Originationmedian | Paid pointsshare · median | Median down |
|---|---|---|---|---|---|---|
| Greenstate Credit Union | 4,40114.3% | 6.25% | −0.42 | $725 | 23%$276 | 23.3% |
| Veridian Credit Union | 1,9096.2% | 6.25% | −0.36 | $500 | 5%$712 | 20.4% |
| Hills Bank and Trust Company | 1,6585.4% | 6.13% | −0.48 | $750 | 10%$358 | 25% |
| Iowa Bankers Mortgage Corporation | 1,3694.4% | 6.50% | −0.14 | $950 | 7%$602 | 25% |
| Northwest Bank | 8172.7% | 6.50% | −0.12 | $1,050 | 16%$1,320 | 20.2% |
| U.S. Bank | 6482.1% | 6.50% | −0.06 | $1,139 | 58%$731 | 22.3% |
| Community Choice Credit Union | 6412.1% | 6.31% | −0.28 | $1,325 | 8%$500 | 20.8% |
| Dupaco Community | 5711.9% | 6.25% | −0.34 | $950 | 0%— | 23.2% |
Source: 2025 HMDA loan-level records (FFIEC/CFPB), lenders with at least 30 comparable loans in Iowa. Minimum credit scores are not shown here: conventional loans usually start at 620 (a lender floor; Fannie Mae's automated underwriting sets none), FHA 580 (500 with 10% down), VA none set by VA (lenders often 620). HMDA has no credit scores, so a lender's medians reflect its own mix of borrowers. FHA and VA lenders: Iowa lender rankings.
How rates have moved
Weekly national averages over the past 30 days to 5 years. The 30- and 15-year lines are Freddie Mac average rates; the ARM lines are the APOR APR benchmark, because no free weekly ARM rate series exists.
- Now
- 7.18%
- Nov 5, 2026
- 1 week ago
- 7.24%
- −0.06 pts
- 1 month ago
- 7.40%
- −0.22 pts
- 1 year ago
- 6.22%
- +0.96 pts
30-year fixed: Freddie Mac PMMS (rate), weekly. National series.
What a mortgage costs in Iowa
On a home at Iowa's median list price of $282,500 with 20% down, the loan works out to $226,000, or about $1,531 a month in principal and interest at the 7.18% 30-year average.
What makes Iowa different is the cost around the loan. Its 1.33% effective property-tax rate adds roughly $313 a month, and homeowners insurance — at the state's median 0.63% of home value — about $149 more, bringing the all-in estimate to $1,993. That figure is principal and interest at the 30-year average, property tax and insurance; at 20% down a conventional loan has no PMI, and HOA dues or local special assessments are not included. Your own price and down payment will move the number — work backward from your income with the affordability estimator.
Payment at the $282,500 median list price by down payment and loan type
| Loan | Rate | Monthlyall-in | Mortgage ins. | Cash to close | Income needed28% rule · yearly |
|---|---|---|---|---|---|
| Conventional, 20% downNo PMI | 7.18%Freddie Mac 30-yr avg | $1,993P&I $1,531 | — | $58,140 | $85,000 |
| Conventional, 10% downPMI est. 0.7%/yr | 7.18%Freddie Mac 30-yr avg | $2,333P&I $1,722 | $148 | $29,890 | $100,000 |
| Conventional, 5% downPMI est. 0.7%/yr | 7.18%Freddie Mac 30-yr avg | $2,437P&I $1,818 | $157 | $15,765 | $104,000 |
| Conventional, 3% downPMI est. 0.7%/yr | 7.18%Freddie Mac 30-yr avg | $2,478P&I $1,856 | $160 | $10,115 | $106,000 |
| FHA, 3.5% down1.75% upfront MIP financed + annual MIP | 6.89%OBMMI FHA avg | $2,412P&I $1,825 | $125 | $11,528 | $103,000 |
| VA, 0% down2.15% funding fee financed; no monthly MI | 6.71%OBMMI VA avg | $2,326P&I $1,864 | — | $1,640 | $100,000 |
Monthly = principal and interest + property tax (1.33% effective) + homeowners insurance (about $149/mo — Iowa's median premium, 0.63% of home value) + mortgage insurance. HOA dues and local special assessments are not included. Cash to close = down payment + Iowa's average closing costs ($1,640). PMI is an illustrative 0.7% a year; FHA and VA figures use HUD's MIP schedule and VA's first-use funding fee. Income needed = the gross yearly income at which the monthly figure is 28% of pay, the classic housing-cost guideline. Lenders also limit your total monthly debts as a share of income, so car, student-loan and card payments raise the income you need.
Prices, loan limits and payments in Iowa's biggest counties
Home prices, and so the loan you need, vary more inside Iowa than rates do. The table covers the largest county markets. Pick a row to load it into the calculator above.
| County | Median list priceSep 2026 · yr/yr | Avg purchase loanHMDA 2025 | Conforming limitmax price at 20% down | At 20% down | Est. paymentP&I + tax + ins. | Calculator |
|---|---|---|---|---|---|---|
| Polk County2,352 homes for sale · Sep 2026 | $313,450-0.9% | $296,9457,647 loans | $832,750$1,040,937 | Conforming$250,760 loan | $2,211at 7.18% | |
| Dallas County890 homes for sale · Sep 2026 | $429,900+0.6% | $343,8022,329 loans | $832,750$1,040,937 | Conforming$343,920 loan | $3,033at 7.18% | |
| Johnson County547 homes for sale · Sep 2026 | $403,725+10.6% | $282,8532,594 loans | $832,750$1,040,937 | Conforming$322,980 loan | $2,848at 7.18% | |
| Scott County470 homes for sale · Sep 2026 | $339,862+16.9% | $239,6382,641 loans | $832,750$1,040,937 | Conforming$271,890 loan | $2,398at 7.18% | |
| Linn County463 homes for sale · Sep 2026 | $335,973+20.8% | $214,1704,010 loans | $832,750$1,040,937 | Conforming$268,778 loan | $2,370at 7.18% | |
| Black Hawk County325 homes for sale · Sep 2026 | $262,450+5% | $194,0981,973 loans | $832,750$1,040,937 | Conforming$209,960 loan | $1,852at 7.18% | |
| Cerro Gordo County308 homes for sale · Sep 2026 | $317,350+11.3% | $222,352321 loans | $832,750$1,040,937 | Conforming$253,880 loan | $2,239at 7.18% | |
| Warren County301 homes for sale · Sep 2026 | $366,998+5.3% | $310,8831,047 loans | $832,750$1,040,937 | Conforming$293,598 loan | $2,589at 7.18% | |
| Woodbury County256 homes for sale · Sep 2026 | $225,000-4.7% | $203,1761,168 loans | $832,750$1,040,937 | Conforming$180,000 loan | $1,587at 7.18% | |
| Story County254 homes for sale · Sep 2026 | $344,500-1.6% | $293,863985 loans | $832,750$1,040,937 | Conforming$275,600 loan | $2,431at 7.18% | |
| Dickinson County221 homes for sale · Sep 2026 | $567,500+18.4% | $505,381289 loans | $832,750$1,040,937 | Conforming$454,000 loan | $4,004at 7.18% | |
| Dubuque County187 homes for sale · Sep 2026 | $297,000-17.3% | $244,6871,341 loans | $832,750$1,040,937 | Conforming$237,600 loan | $2,095at 7.18% |
Sources: Realtor.com county research data (median listing price, Sep 2026); FHFA 2026 one-unit conforming limits; 2025 HMDA home-purchase originations (average loan, all loan types). Payments use the 30-year average (7.18%, or the jumbo average 7.25% above the limit), Iowa's 1.33% effective property tax and its median insurance premium (0.63% of value), both from Census ACS 2024 data; county tax rates differ. Max price at 20% down = the county limit ÷ 0.8, the highest price at which a 20%-down loan stays conforming. Homes for sale = active Realtor.com listings in the month, excluding pending sales.
What's different about buying a home in Iowa
Rates are national, but the rules around the loan are not. These Iowa specifics can change your payment, your closing or your protections as a borrower.
Flat-fee title coverage through Iowa Title Guaranty
Iowa Title Guaranty, the state's title coverage program, charges a flat $175 for residential owner coverage up to $750,000, rather than a percentage of the purchase price. That owner coverage is free if your lender simultaneously obtains Iowa Title Guaranty coverage, so consult your lender early.
Source: opportunityiowa.govSeller disclosure due before any written offer
Iowa generally requires a seller, or the seller's broker, to deliver a written disclosure statement before making or accepting a written offer. If it is not timely delivered, the buyer may withdraw the offer or revoke the acceptance without liability within three days of personal delivery, or five days of electronic or mailed delivery.
Source: legis.iowa.govLenders may elect foreclosure without redemption
For nonagricultural property, an Iowa lender may elect foreclosure without redemption: the sale follows promptly after judgment, and the borrower has no redemption right afterward. A written demand delays the sale until six months after judgment for a one- or two-family residence, or three months if the lender waives a deficiency judgment.
Source: legis.iowa.govHomestead exemption claims are due by July 1
Iowa's homestead exemption equals 10% of the home's taxable value, not less than $5,500 and not more than $20,000, adjusted for inflation annually. The owner must occupy the home on July 1 and file the claim on or before July 1; once allowed, it continues without refiling while the owner stays eligible.
Source: revenue.iowa.govSpouse must sign for Iowa homestead mortgages
If an Iowa homestead owner is married, a conveyance or mortgage of the homestead is not valid until the owner's spouse also signs. A purchase money mortgage is an exception, so a home-purchase loan may not need the spouse's signature, but other mortgages on the homestead, such as a home equity loan, generally do.
Source: legis.iowa.govChecked against official sources on October 20, 2026. Laws and programs change; confirm details with the agency named or a local real estate attorney.
How Iowa buyers finance their homes
USDA loans are where Iowa stands out: they made up 1.0% of home loans originated here in 2025, against 0.6% nationally — the 13th-highest USDA share of any state. Lenders, agents and appraisers here handle USDA deals routinely, which helps if that is the loan you need.
| Loan type | Share in IA | U.S. share | Approval in IA | Avg loan in IA |
|---|---|---|---|---|
| Conventional | 85.7% | 78.0% | 85.5% | $210,837 |
| FHA | 7.9% | 13.2% | 74.4% | $207,653 |
| VA | 5.5% | 8.2% | 81.5% | $285,272 |
| USDA | 1.0% | 0.6% | 78.8% | $138,528 |
The average Iowa home loan in 2025 was $213,952 — 39% below the U.S. average of $352,861, the 3rd-smallest of 51 jurisdictions. Home purchases accounted for 68.1% of those loans (U.S. 64.2%); cash-out refinances for 11.6% (U.S. 17.1%), a sign that fewer owners here borrowed against their equity.
Source: 2025 HMDA originations, FFIEC/CFPB. Approval = originated ÷ (originated + denied).
Iowa loan limits for 2026
All 99 of Iowa's counties use the 2026 baseline conforming limit of $832,750 for a one-unit home. Any loan above that is a jumbo loan here, which usually means a larger down payment and cash reserves. See the full national grid in our conforming loan limit reference.
County limits: FHFA 2026 conforming loan limit list (one-unit properties; two- to four-unit limits are higher).
Cash you'll need to close in Iowa
Average closing costs in Iowa are about $1,640 including transfer taxes (among the lowest in the country). On a home at the median list price of $282,500:
| 20% down | 3% down | |
|---|---|---|
| Down payment | $56,500 | $8,475 |
| Average closing costs | $1,640 | $1,640 |
| Cash to close (estimate) | $58,140 | $10,115 |
Prepaid taxes and insurance are extra. Closing-cost averages by state (source: Bankrate).
Transfer taxes and recording rules in Iowa
Iowa's real estate transfer tax is $0.80 per $500 of the price above the first $500 (0.16%), paid to the county recorder with a declaration of value when the deed is recorded. Source: legis.iowa.gov
Getting approved in Iowa
Federal HMDA lending records show Iowa lenders originated 75,933 home loans in 2025 and denied 14,267 applications — an approval rate near 84.2% among decisioned applications, against 76.6% nationwide. See how all 50 states compare in our mortgage approval report, and how Iowa ranks for lender complaints (1,527 on record).
Shopping for a loan? See the most active mortgage lenders in Iowa, ranked by federal HMDA volume.
Down-payment help in Iowa
You rarely need 20% down. These are the main programs from Iowa Finance Authority, Iowa's housing finance agency; they are offered through participating lenders, usually alongside the agency's own first mortgage.
FirstHome
The Iowa Finance Authority's first-time buyer mortgage, paired with either a $2,500 grant or a second loan of up to 5% of the price with no monthly payments (repaid on sale, refinance or payoff). IFA's assistance options change on November 2, 2026, adding a 3% second-mortgage option.
Source: iowafinance.comMilitary Homeownership Assistance
A $5,000 grant for eligible service members and veterans that can be combined with FirstHome or Homes for Iowans, while funding lasts.
Source: iowafinance.comChecked against official sources on October 9, 2026. Assistance amounts, income limits and funding change during the year — confirm current terms with Iowa Finance Authority or a participating lender.
Iowa's MCC program: closed
IFA says there is currently no funding for new MCCs (its program was a 50% credit, up to $2,000); existing certificates can be reissued on a refinance. MCC status in all 50 states and DC.
Check current terms at Iowa Finance Authority, see how a smaller down payment changes your number with the down-payment estimator, or compare assistance in every state.
How these numbers are measured
- Freddie Mac PMMS (30- and 15-year): a weekly average of rates offered to borrowers with 20% down and strong credit, published Thursdays; latest week Nov 5, 2026. Points are not reported.
- Optimal Blue OBMMI (FHA, VA, USDA, jumbo): daily averages of rates actually locked, across credit profiles. Points vary by loan.
- APOR (APR benchmark): FFIEC/CFPB's weekly Average Prime Offer Rate, an APR that includes typical points and fees for a prime borrower. Regulators use it to flag higher-priced loans.
- HMDA 2025 (Iowa vs U.S.): rates, costs, points and down payments on loans that actually closed, reported by lenders to federal regulators. Updated once a year.
- Census ACS 2024 (property tax and insurance): what homeowners with a mortgage in Iowa reported paying — the median real-estate tax divided by the median home value, and the median insurance premium as a share of value. Updated once a year.
- Interest rate vs APR: the rate sets your payment; the APR adds points and lender fees spread over the loan. Compare APRs on Loan Estimates for the same day and loan type.
Rates and APOR refresh every week; HMDA, loan limits and closing-cost averages refresh when their publishers release new data. Reviewed by our editorial team. Full sources and formulas: our methodology.
Iowa mortgage FAQ
What is a good mortgage rate in Iowa right now?
A 30-year fixed close to the national average of 7.18% (Freddie Mac, week of Nov 5, 2026) is a fair benchmark for a borrower with strong credit and 20% down. In 2025, Iowa's conventional buyers paid a median 6.38%.
Quotes well above that usually reflect lower credit, a small down payment or lender credits taken in exchange for a higher rate.
Are mortgage rates higher in Iowa than in other states?
No, if anything slightly lower. In 2025 HMDA records, Iowa's median conventional 30-year rate was 6.38%, against 6.50% nationally.
Against the benchmark for each loan's lock week, which counts points and fees, Iowa loans priced 0.22 percentage points below it (the lowest of all 50 states and the District of Columbia), against 0.02 above nationally.
Rates are set mainly in one national market, so your credit, down payment and loan size matter more.
What are current jumbo mortgage rates in Iowa?
The national jumbo 30-year average is 7.25% (Optimal Blue). A loan is jumbo above the $832,750 conforming limit, which applies in every Iowa county. Jumbo lenders typically want 10–20% down, a 700+ credit score and 6–12 months of reserves.
Should I choose a 15-year or 30-year mortgage?
On a $226,000 loan (20% down on Iowa's median list price), a 30-year at 7.18% costs $1,531 a month and a 15-year at 6.57% costs $1,977.
The 15-year saves about $195,227 in interest but needs $446 more a month, so it fits only if that payment is comfortable.
How much does a 1% difference in mortgage rates change my monthly payment?
On a $226,000 loan (20% down on Iowa's median list price), moving from 7.18% to 8.18% raises the principal-and-interest payment from $1,531 to $1,687, or $156 a month.
Over 30 years that is about $56,070 more in interest, which is why comparing several lenders on the same day matters.
Are mortgage rates different for purchase and refinance loans?
Yes, slightly. In 2025, Iowa's conventional rate-and-term refinances closed at a median 6.13% and purchases at 6.38%, partly because refinances bunch up when rates dip. Refinances priced 0.21 percentage points below the market benchmark; cash-out refinances usually cost more. Your own pricing depends on credit, loan-to-value and points.
How much is a $400,000 mortgage at 7.18% interest?
About $2,710 a month in principal and interest over 30 years. In Iowa, a $500,000 home with that loan adds roughly $554 a month in property tax at the 1.33% effective rate, plus homeowners insurance. Over 30 years the loan costs about $575,506 in interest.
How much income do I need to buy a home in Iowa?
About $85,000 a year for a home at the $282,500 median list price with 20% down, if the full $1,993 monthly payment, including tax and insurance, stays within 28% of gross income.
Smaller down payments add mortgage insurance and raise that figure; existing debts lower what lenders approve.
What down payment assistance is available in Iowa?
Iowa Finance Authority, the state housing finance agency, runs FirstHome and Military Homeownership Assistance, offered through participating lenders. Help usually comes as a grant or a deferred or forgivable second loan paired with the agency's first mortgage.
Amounts, income limits and funding change during the year, so confirm current terms with Iowa Finance Authority or a participating lender before you apply.
- Freddie Mac — Primary Mortgage Market Survey
- FFIEC / CFPB — Average Prime Offer Rates (APOR)
- FFIEC / CFPB — HMDA data browser (2025 loan-level records)
- Optimal Blue OBMMI via FRED (FHA, VA, USDA, jumbo)
- FHFA — 2026 conforming loan limits by county
- U.S. Census Bureau — 2024 American Community Survey microdata (property tax and homeowners insurance)
- HUD — Handbook 4000.1 (FHA mortgage insurance)
Rates shown are national weekly averages for general guidance, not an offer or personalized quote. Payment estimates assume the down payment noted plus estimated taxes and insurance. Confirm current pricing with a licensed lender.