Iowa Mortgage Rates

August 27, 2015 05:09 PM Eastern

Refinance rates now in DES MOINES, IA [Change this]

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Home Price (Purchase)
When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
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Home Value (Refinance)
This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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Down Payment
The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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Credit Score
Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.

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Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

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 Iowa Mortgage Rates

Mortgage rates can vary from state-to-state because of economic factors, competition among lenders, and local laws.

Buying a Home in Iowa

Unlike many parts of the country, Iowa home prices held fairly stable through the recession. Over the last 10 years they are up 21%. Prices are forecast to rise another 1.22% over the next 12 months, outperforming the housing market in other parts of the country.

The Housing Opportunity Index indicates that  92% of Iowa homes are affordable to median income households. Adding in closing costs on a $200,000 mortgage of $2,403—just about average for all states and the District of Columbia--buying a home in Iowa is very affordable.

For homebuyers who may need additional help with financing and down payments, Iowa offers state and regional programs that may be able to offer assistance. Here is a partial list:

FHA Mortgages

FHA mortgages allow homes to be purchased with just 3.5 percent down. FHA mortgage loan amounts are capped at $271,050 in all Iowa counties.

VA Home Loans

Eligible veterans buying in Iowa can borrow up to $417,000 with no down payment in all Iowa counties.