What are average mortgage rates in Iowa in 2026?

Mortgage rates in Iowa generally track national averages. As of 2026, expect 30-year fixed rates from 5.5% to 7.5% for good credit borrowers. Use CalcDeck's Iowa mortgage calculator to model your payment at current rates.

How much are closing costs in Iowa?

Closing costs in Iowa typically range from 2% to 5% of purchase price, including lender fees, title insurance, and prepaid items. Use CalcDeck's Iowa mortgage calculator to include closing costs in your calculation.

What are property tax rates in Iowa?

Property tax rates in Iowa range from 0.3% to 2.5% of assessed value. CalcDeck's Iowa calculator includes property tax in your PITI payment.

What first-time homebuyer programs exist in Iowa?

Iowa offers down payment assistance, favorable-rate mortgages, and tax credits through state agencies. Use CalcDeck's Iowa calculator to see how programs affect your payment.

How do I use the CalcDeck Iowa mortgage calculator?

Enter home price, down payment, interest rate, and loan term. Adjust property tax and insurance to match Iowa averages. Get instant monthly payment, total interest, and amortization schedule.

Iowa Mortgage Calculator

Median home prices, property taxes, and monthly payment estimates for Iowa homeowners.

Iowa at a Glance

Median Home Price: $205,000
Property Tax Rate: 1.49%
Median Household Income: $68,572
Annual Property Tax: $3,055

Sources: Zillow ZHVI (2024), Tax Foundation (2023), US Census ACS (2023)

Monthly Mortgage Payment in Iowa

Based on the Iowa median home price of $205,000 at 6.7% interest (30-year fixed):

Payment Breakdown	20% Down	5% Down
Loan Amount	$164,000	$194,750
Principal and Interest	$1,058	$1,257
Property Tax (IA)	$255	$255
Homeowners Insurance	$125	$125
PMI	$0	$81
Total Monthly	$1,438	$1,717

How Much House Can You Afford in Iowa?

Using the 28/36 rule (housing costs under 28% of gross income):

With 20% down, you need ~$61,620/year to afford Iowa's median home
With 5% down, you need ~$73,601/year
Iowa's median household income is $68,572

Iowa insight: Iowa's property tax rate of 1.49% is near the national average.

Iowa Housing Market Overview

Iowa's housing market remains relatively affordable compared to national averages, with a median home price of $205,000. This is well within reach of the median household income of $68,572, yielding a price-to-income ratio of roughly 3.0. Major metro areas like Des Moines, Cedar Rapids, and Iowa City have seen moderate price appreciation of 4-6% annually over the past two years, though inventory remains tight—only about 2.5 months of supply statewide as of early 2025. Smaller cities such as Davenport and Sioux City offer even lower entry points, with median prices around $160,000. However, rising mortgage rates have tempered demand slightly. The effective property tax rate of 1.49% adds approximately $3,055 annually, a significant but manageable cost for most buyers.

First-Time Homebuyer Programs in Iowa

The Iowa Finance Authority (IFA) operates several first-time homebuyer programs, including the IFA FirstHome Program, which offers fixed-rate mortgages with down payment assistance of up to $5,000 for eligible buyers. The IFA Move Iowa Program provides up to $2,500 in closing cost assistance for qualifying households earning below 80% of area median income. Additionally, the IFA Homes for Iowans program offers a 30-year fixed-rate loan with a low interest rate and a minimum down payment of just $1,000. Local housing trust funds, such as the Polk County Housing Trust Fund, also provide grants of $3,000–$7,500 for down payment help. Buyers must complete a homebuyer education course through IFA-approved counselors.

Tips for Homebuyers in Iowa

1. Factor in Iowa's effective property tax rate of 1.49%—on a $205,000 home, that's about $3,055/year, so budget accordingly and check county-level rates (e.g., Polk County averages 1.62%). 2. Iowa homes often lack central air conditioning; if buying an older home, budget $5,000–$8,000 for a new HVAC system, especially in humid eastern cities like Iowa City. 3. Homeowners insurance in Iowa averages $1,200–$1,500 annually due to tornado and hail risk; get quotes from multiple carriers before committing. 4. Spring and early fall are peak buying seasons in Des Moines and Cedar Rapids—houses sell faster and at 2-3% premium; consider a winter purchase for less competition and possible price reductions. 5. Radon levels are high in Iowa (nearly 60% of homes test above EPA action level); always request a radon test during inspection and budget $800–$1,500 for mitigation if needed. 6. In rural areas, verify well and septic system condition—replacement can cost $5,000–$15,000 and is not typically covered by standard inspections.

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Iowa Mortgage FAQ

What is the median home price in Iowa?

The median home price in Iowa is approximately $205,000 as of 2024 (Zillow ZHVI). Your actual price will vary by city and neighborhood.

What is the property tax rate in Iowa?

The effective property tax rate in Iowa is approximately 1.49% (Tax Foundation). On a $205,000 home, that is about $3,055/year in property taxes.

How much income do I need to buy a home in Iowa?

Using the 28/36 rule with 20% down at 6.7%, you would need about $61,620/year to afford the median Iowa home at $205,000. With 5% down (including PMI), about $73,601.

What will my monthly mortgage payment be in Iowa?

On Iowa's median home price of $205,000 with 20% down at 6.7%, your total monthly payment (P and I plus tax plus insurance) is approximately $1,438. With 5% down including PMI, about $1,717.

Data sources: Zillow ZHVI typical home values (2024), Tax Foundation effective property tax rates (2023), US Census Bureau ACS median household income (2023). Mortgage rate assumption: 6.7% APR 30-year fixed. This is an estimate — use our calculator for personalized numbers.