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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Current 30-year fixed mortgage rates are averaging: 7.13%
Current 15-year fixed mortgage rates are averaging: 6.65%
Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners on the previous day for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
Compare IA mortgage rates today
Refinance rates in Iowa
Take a look at your home refinance options, each offering unique features and rates.
- Rate-and-term refinances allow you to modify your mortgage either by adjusting the interest rate, loan term — or both. Lengthening your loan term or reducing the interest rate results in a lower monthly mortgage payment.
- Cash-out refinances replace your existing loan with a new mortgage and let you borrow cash against your home equity. Rates on cash-out refinances are typically higher than regular refinances, though.
- Conventional refinances aren’t part of government programs and usually have higher rates than government-backed refinance options.
- FHA refinances, backed by the Federal Housing Administration (FHA), are generally more accessible and may have lower rates than conventional refinances.
- VA refinances, which are guaranteed by the U.S. Department of Veterans Affairs, offer lenient requirements and some of the lowest rates, but eligibility is reserved for qualified military borrowers.
Current 30-year fixed mortgage refinance rates are averaging: 7.39%
The current average rate for a 15-year fixed mortgage refinance is: 6.83%
Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners on the previous day for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
See whether refinancing makes sense for you using our mortgage refinance calculator.
- Mortgage rate trends
- How to get the best mortgage rate for a Iowa home loan
- 2024 Iowa home loan programs
- Learn about different types of IA mortgage loans
- Featured resources
What is the current mortgage rates forecast for 2024?
The current mortgage rates forecast anticipates a decline in rates, with 2024 predictions pointing to the average 30-year fixed mortgage interest rates dropping to around 6% — or potentially lower — leading up to 2025.
Despite the higher rates since the COVID-19 pandemic, a positive trend started to form in late 2023, with rates dropping from a peak of 7.79% in October to 6.61% by the year-end.
How do I get the best mortgage rate for my Iowa home loan?
Several factors influencing mortgage rates are beyond your control, but taking the following actions can help you secure the best mortgage rate.
- Boost your credit. Improving your credit score to access more favorable mortgage rates is key, as higher scores often lead to better offers.
- Lower your debt-to-income (DTI) ratio. Enhance your financial profile by either increasing your income or paying down debt. If necessary, a cosigner can also assist in lowering a higher DTI ratio.
- Buy a single-family, site-built home. Opting for a single-family, site-built home can potentially offer lower mortgage rates, as rates tend to be higher for manufactured homes, vacation homes, investment properties or multifamily homes.
- Pay mortgage points. Lower your interest rate by up to 0.25 percentage points for each mortgage point you purchase. While these are upfront interest payments, they can lead to long-term savings.
- Compare offers from multiple lenders. No two lenders are alike, so gathering rate quotes from three to five lenders can result in substantial savings. LendingTree data revealed shopping around for the best mortgage rate can potentially save thousands or even tens of thousands over the loan’s lifespan.
Read more about our picks for the best mortgage lenders.
When should I lock in my mortgage rate?
When should I lock in my mortgage rate?Once you’ve completed your mortgage application and received a favorable loan estimate, it’s time to request a mortgage rate lock from the lender. This step ensures that the agreed-upon interest rate remains unchanged until your closing date. This stability and peace of mind allow you to proceed with confidence throughout the mortgage process, especially in fluctuating market conditions.
2024 Iowa home loan programs
Homes for Iowans
The Iowa Finance Authority’s (IFA) Homes for Iowans program is designed to simplify the homebuying process by offering flexible down payment options, including the potential for a 3% down payment and reduced mortgage insurance for qualifying borrowers.
Who qualifies?
Borrowers must:
Have a minimum 640 credit score
Have a maximum 50% DTI ratio
Have a maximum income of $161,560
Purchase home worth no more than $588,000
Occupy the home as a primary residence within 60 days of purchase
Complete a homebuyer education course
Military Homeownership Assistance Program
Iowa’s Military Homeownership Assistance Program provides service members and veterans a $5,000 grant to help with their down payment and closing costs on eligible homes.
Who qualifies?
Borrowers must:
Have served at least 90 days of active duty between Aug. 2, 1990, and April 6, 1991, or Sept. 11, 2001, to present
Be a federal status injured service member active during the periods of Aug. 2, 1990, and April 6, 1991, or Sept. 11, 2001, to present
Be the surviving spouse of an eligible service member who wasn’t dishonorably discharged
Iowa City, GreenState Credit Union and Hills Bank Down Payment Assistance Program
Iowa City has partnered with financial institutions GreenState Credit Union and Hills Bank to tackle the racial homeownership gap. Their down payment assistance program provides flexible financing options for underserved neighborhoods. Eligible homebuyers can receive up to $15,000 as a 10-year forgivable loan for down payment assistance. In addition, they’ll get access to complimentary homebuyer education and financial counseling from Horizons, a human services organization based in eastern Iowa.
Who qualifies?
Borrowers must:
Have an income between $64,650 and $107,100, depending on household size
Finance through GreenState Credit Union or Hills Bank
Complete a HUD-approved homebuyer education course
Contribute a minimum of $250 for down payment or closing costs and have two months of housing payments in savings
Purchase a single-family or condo unit for no more than $271,000 in a low-income census tract area within the municipal boundaries of Iowa City
Pass Housing Quality Standards (HQS) inspection
FirstHome Program
Iowa Finance Authority’s FirstHome Program eases the financial strain for first-time homebuyers by providing a $2,500 grant toward their down payment and closing costs. A second option allows homebuyers to secure a second mortgage up to 5% of the home’s sale price, which must be repaid if the home is sold or refinanced, or when the first mortgage is paid off.
Who qualifies?
Borrowers must:
Have a minimum 640 credit score
Have a maximum 50% DTI ratio
Have a maximum $115,400 income for a two-person household
Purchase a home priced no more than $418,000 to $588,000, based on the location
Occupy the home as a primary residence within 60 days of close
Complete a homebuyer education course (mandatory for conventional loans)
Be a first-time homebuyer, a homebuyer purchasing in a targeted area or military member who wasn’t dishonorably discharged
Who qualifies as a first-time homebuyer?
Those who have never owned a home
Those who have not owned real estate within the last three years
Learn about different types of IA mortgage loans
→Iowa conventional loans: Those with good credit and a decent down payment may find conventional loans to be a reliable option. These typically adhere to minimum mortgage requirements set by Fannie Mae and Freddie Mac.
→Iowa FHA loans: FHA loans are a great alternative to conventional loans, as their requirements are generally more accessible. Borrowers can be approved with a credit score as low as 500 and a 10% down payment — and if you have at least a 580 score, you can put down as little as 3.5%.
→Iowa VA loans: VA loan requirements offer flexibility and value for borrowers with a military background, including benefits like the option to purchase or refinance without a down payment or monthly mortgage insurance payments.
→Iowa streamline refinances: Available for an FHA streamline refinance loan or VA interest rate reduction refinance loan (IRRRL), these refinance options involve less paperwork and hassle compared to other types. However, to take advantage of these options, you’ll need to refinance from one FHA loan to another FHA loan, or from a VA loan to another VA loan.
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