Iowa Mortgage and Refinance Rates

As of Saturday, May 8, 2021, current rates in Iowa are 3.09% for a 30-year fixed, and 2.35% for a 15-year fixed.

Bankrate has offers for Iowa mortgage and refinances from top partners that are well below the national average. Compare, apply, and start saving today.

About our Mortgage Rate Tables: The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our "Advertisers"). Other lenders' terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a "Next" button that can be used to click-through to the Advertiser's own website or a phone number for the Advertiser.

Availability of Advertised Terms: Each Advertiser is responsible for the accuracy and availability of its own advertised terms. Bankrate cannot guaranty the accuracy or availability of any loan term shown above. However, Bankrate attempts to verify the accuracy and availability of the advertised terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. Click here for rate criteria by loan product.

Loan Terms for Bankrate.com Customers: Advertisers may have different loan terms on their own website from those advertised through Bankrate.com. To receive the Bankrate.com rate, you must identify yourself to the Advertiser as a Bankrate.com customer. This will typically be done by phone so you should look for the Advertisers phone number when you click-through to their website. In addition, credit unions may require membership.

Loans Above $548,250 May Have Different Loan Terms: If you are seeking a loan for more than $548,250, lenders in certain locations may be able to provide terms that are different from those shown in the table above. You should confirm your terms with the lender for your requested loan amount.

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Compare today's average mortgage rates in the state of Iowa. Bankrate aggregates mortgage rates from multiple sources to provide averages for Iowa.

Iowa Mortgage Interest Rates Saturday, May 8
Loan Term Interest Rate Change 1 Day Rate Last Week
30-year fixed mortgage rate 3.09% trend-up-red 0.03% 3.12%
15-year fixed mortgage rate 2.35% trend-up-red 0.02% 2.37%
30-year fixed jumbo mortgage rate 3.12% trend-up-red 0.03% 3.15%
30-year fixed refinance rate 3.17% trend-up-red 0.03% 3.20%

Lenders nationwide provide weekday mortgage rates to our comprehensive national survey to help consumers in their mortgage process. To learn more about the different rate averages Bankrate publishes above, see Understanding Bankrate's Rate Averages.

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Iowa mortgage overview

By Jeff Ostrowski

The state of Iowa has both first-time homebuyer programs and programs for current homeowners moving into a new home. Funds from the state can help residents with making a down payment and paying closing costs for a mortgage, which are often barriers to purchasing a home.

First-time homebuyer programs in Iowa

FirstHome Program

Iowa’s first-time homebuyer program is operated by the Iowa Finance Authority (IFA) and provides buyers assistance with the down payment and closing costs. Through the FirstHome program, borrowers who obtain a mortgage through the Iowa Finance Authority can take advantage of either a down payment assistance grant or a loan through the 2nd Loan program.

  • The FirstHome grant is a $2,500 grant to put toward the down payment and closing costs.
  • The 2nd Loan is a no-monthly-payment loan of up to 5 percent of the sale price of the home, or $5,000, depending on which is less, that can help with the down payment and closing costs. The loan must be repaid when the first mortgage is paid off, or when the home is refinanced or sold.

To be eligible for the FirstHome program, borrowers must meet household income limits, which depend on the location of the home and vary. The income limit for a two-person household ranges from $79,700 to $101,200. The maximum purchase price limit is $294,000, unless you’re buying in a targeted area, where the purchase price limit is $360,000.

The FirstHome program also has a minimum credit score requirement of 640, although alternative credit history may be considered, and the maximum debt-to-income ratio is 45 percent.

To participate in the program, the borrower must be either:

  • A first-time homebuyer (or have not owned a home in the past three years)
  • A member of the military who was discharged honorably and has not already participated in the program Buying a home in a targeted area

Military Homeownership Assistance Program

Iowa’s Military Homeownership Assistance Program is a $5,000 grant for service members, veterans and surviving spouses that can be used toward the down payment and closing costs. The money can be used together with the FirstHome program and the Homes for Iowans program (for current homeowners). There are certain eligibility requirements, including length of service, and the borrower must work with an IFA-approved lender to qualify.

Iowa mortgage refinancing

The Iowa Finance Authority does not currently offer a mortgage refinancing program. Refinancing to a lower interest rate can help you save thousands of dollars over the life of your mortgage, and make the payments more affordable. If you’re considering a refinance, shop around for lenders and compare the terms of each loan offer to get the best possible refinance rate.

Alabama mortgage resources