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Mortgage rates in Iowa

Rates often come in higher than the rest of the country.

With national rates set to hover around 4% in 2020, rates in the Hawkeye State come in slightly above at 4.576% for a 30-year conventional loans, and a bit higher at 4.634% for government-insured options.

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Compare these lenders and lender marketplaces by the type of home loan you're searching for, state availability and minimum credit score (for a conventional loan). Select See rates to provide the company with basic property and financial details for personalized rates.
Name Product Loan products offered State availability Min. credit score
Morty
(NMLS #1429243)
Morty
Conventional, Jumbo, Refinance
AL, AR, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, MD, ME, MI, MN, MS, MT, NC, NE, NJ, NM, OH, OK, OR, PA, SC, TN, VA, WA, WI, WV
660
Preapproval in minutes and closing in as little as 3 weeks with no origination fees.
SoFi
(NMLS #1121636)
SoFi
Conventional, Home equity, Refinance
Not available in: HI, MO, NM, NY, WV
620
No hidden fees, multiple loan terms, and member discounts available.
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
Better
(NMLS #330511)
Better
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
620
Online preapproval in minutes and no origination fees with this direct lender.
LendingTree
(NMLS #1136)
LendingTree
Conventional, Jumbo, FHA, VA, USDA, Home Equity, HELOC, Reverse, Refinance
Available in all states
620
Connect with vetted home loan lenders quickly through this online marketplace.
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How much do Iowa rates vary?

According to 2018 data, average mortgage rates for 30-year mortgages in Iowa range from 4.465% to 4.805%. A few variables can impact your rate. For example, VA loans generally have lower interest rates and more requirements than conventional mortgages.

2018 average rates in Iowa by loan type

Loan type15-year average rate30-year average rate

Conventional4.438%4.576%
FHA4.369%4.805%
VA3.925%4.465%
USDANot available4.632%

Based on data from ffiec.cfpb.gov.

To give you an idea of how much a slight difference in interest rate can make, suppose you had a $145,000 mortgage. A 30-year conventional loan with an average rate of 4.576% might cost $741.26 per month, before taxes and fees. On the other hand, a 30-year VA loan with an average rate of 4.465% might have a monthly payment of $731.68.

Although the difference is only $9.58 per month, the VA loan could save you $3,446.89 over the life of the loan.

Which way are rates trending in Iowa?

Mortgage rates in Iowa will likely seesaw around the 4% mark in 2020.

Iowa mortgage rates have come in higher than the rest of the country, especially since 2014. In 2018, mortgage rates in Iowa averaged 0.18% higher than the national average, with 2017 coming in 0.13% higher.

Housing authorities, including mortgage buyers Freddie Mac and Fannie Mae, predict 30-year rates to average between 3.55% and 3.9%. Iowa mortgage rates will probably come in above the national average at a solid 4%.

Compare mortgage rates throughout Iowa

Mortgage rates and home values fluctuate slightly in the Hawkeye State, relative to the metropolitan area you live in. That means even if you have the same rate as another homebuyer in the next county over, you may have a higher monthly payment because home prices are higher in your area.

We took a look at data from the Home Mortgage Disclosure Act to give you an idea of what the average 30-year fixed-rate mortgage might cost you in different metropolitan areas in Iowa. These estimated payments don’t account for taxes, fees, PMI or other expenses specific to your mortgage.

Metropolitan statistical area (MSA)Average mortgage rateMedian loan amountEstimated monthly cost

Ames4.653%$175,000$900
Cedar Rapids4.481%$145,000$730
Davenport MSA (Scott County, IA)4.572%$155,000$790
Des Moines-West Des Moines4.609%$185,000$950
Dubuque4.524%$155,000$790
Iowa City4.286%$195,000$960
Omaha MSA (Harrison, Mills and Pottawattamie Counties, IA)4.745%$145,000$760
Sioux City MSA (Woodbury County, IA)4.766%$135,000$700
Waterloo-Cedar Falls4.514%$125,000$630

Based on data from ffiec.cfpb.gov.

How to get the best mortgage rate in Iowa

Here are some strategies to get the best mortgage rate in Iowa:

  1. Read up on loan programs. Lenders offer different loan programs with varying interest rates. Find out which loan products you’re eligible for and compare rates.
  2. Improve your borrowing profile. Before you apply for a loan, take some time to boost your credit score and lower your debt-to-income ratio by paying down debt. Lenders give the best rates to borrowers with strong credit profiles.
  3. Check closing costs. Some lenders advertise lower interest rates but tack on high closing costs. Closing costs range from 0.96% to 1.91% in Iowa of the home purchase price. Weigh all the costs attached to your loan, from the interest rate to what’s due at closing.

Historical mortgage interest rates in Iowa

Bottom line

Iowa mortgage rates frequently surpass the national average. With predictions for the US 30-year rates in the upper 3%, Iowa mortgage rates will likely dance around 4% in 2020. Compare mortgages and lenders to find the best loan program for you.

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