Current Iowa Mortgage and Refinance Rates
Mortgage interest rates currently average 6.11% for 30-year fixed loans and 5.23% for 15-year fixed loans.
Refinance rates in Iowa
30-year FIXED
Current refinance rates are averaging:
6.52%
15-year FIXED
Current refinance rates are averaging:
6.06%
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.
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast?
The current mortgage rates forecast anticipates rates will remain around 6.0% in early 2026 after three rate cuts by the Federal Reserve in late 2025.
Home affordability remains low and is not expected to change in the near future, so potential Iowa homebuyers looking to get the lowest monthly payment on their home loan should focus on improving their financial eligibility to qualify for the best rates.
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.
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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.
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.
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
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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.