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Mortgage rates in Iowa

Interest rates on a 30-year $300,000 conventional mortgage start at around 3.563%

If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.750% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your Iowa home will depend on several factors, including your credit score, loan amount and lender.

Rates were last checked on January 10 and are from the Consumer Financial Protection Bureau (CFPB) website.

Your credit score affects the rate you’ll get

People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in Iowa by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).

Credit score $200,000 mortgage $300,000 mortgage $400,000 mortgage $500,000 mortgage
620-639 4.250% 4.250% 4.250% 4.250%
640-659 4.125% 4.125% 4.063% 4.063%
660-679 4.000% 4.000% 4.000% 4.000%
680-699 3.813% 3.750% 3.750% 3.750%
700-719 3.875% 3.750% 3.625% 3.625%
720-739 3.750% 3.625% 3.500% 3.500%
740-759 3.625% 3.563% 3.500% 3.500%
760-779 3.625% 3.563% 3.500% 3.500%
780-799 3.625% 3.563% 3.500% 3.500%
800+ 3.625% 3.563% 3.500% 3.500%

*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage

Interest rates vary by lender

Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.

Comparing lenders can help you find the best deal. 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
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
Streamline your mortgage from quote to final payment — all from your computer or phone.
(NMLS #1168)
Conventional, Jumbo, FHA, VA, USDA, Refinance
Not available in: NY
Great customer reviews and customized rate quotes in three minutes with no SSN needed.
Veterans United
(NMLS #1907)
Veterans United
Conventional, FHA, VA, USDA, Jumbo, Refinance
Available in all states
Veterans United stands out from other lenders for its focus on serving the military community.
(NMLS #330511)
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
Online preapproval in minutes and no origination fees with this direct lender.

Compare up to 4 providers

Interest rates also vary by loan type

The type of loan you get can also affect how much you pay for your Iowa home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.

Loan type $200,000 mortgage $300,000 mortgage $400,000 mortgage $500,000 mortgage
15-year conventional 2.750% 2.625% 2.625% 2.625%
30-year conventional 3.875% 3.750% 3.625% 3.625%
15-year FHA 3.000% 2.875% Not eligible Not eligible
30-year FHA 3.500% 3.500% Not eligible Not eligible
15-year VA 3.188% 3.125% 3.000% 2.875%
30-year VA 3.750% 3.500% 3.500% 3.500%

*Based on a 10% down payment, fixed interest rate and 710 credit score

Research ahead of time to get the best rates

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.

Home values in Iowa are projected to rise, but less than other states

According to Zillow, the price of a typical home in Iowa increased by 6.8% in the 12 months prior to June 2021. But compared to other states, this is a relatively modest increase, and the average home price in the Hawkeye State sits at $165,955.

If you’re looking to buy a home in Iowa, prices in Bouton, Solon, Williamson and Douds are set to see increases north of 11% by June 2022. Meanwhile, the rest of Iowa should see price rises below 11% during the same timeframe, including the capital of Des Moines, at 10.2%.

As prices go up, waiting to buy likely means paying more for a home in the future and potentially missing out on 2021’s record low interest rates.

5 fast facts about Iowa’s housing market

If you’re looking to settle down in Iowa, here are five facts you should know:

  1. The average price of a home in Iowa is $165,955 as of June 2021, which is 43.4% less than the national average.
  2. As of 2019, the average monthly homeownership cost in Iowa is $1,260 with a mortgage, which is 21% less than the national average of $1,595.
  3. Closing costs in Iowa run about 1.16% with taxes. Iowa ranks 46th out of 50 states in average closing costs paid.
  4. According to SmartAsset, Iowans pay an average of 1.53% in property taxes for assessed value, which is slightly higher than the national average.
  5. Iowa has first-time homebuyer programs, including the FirstHome program, which offers grants and loans to help cover your down payment.

Bottom line

Mortgage rates in Iowa vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.

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