Current Mortgage Rates in Iowa

Contributor, Benzinga

Most of our users get purchase loans and refinance from New American Funding.

Loan Type Rate APR
30-year fixed 5.695% 5.787%
15-year fixed 4.95% 5.221%
7/1 ARM (adjustable rate) 5.75% 4.988%
5/1 ARM (adjustable rate) 5.535% 4.594%
Rates based on an average home price of $152,885 and a down payment of 20%.
See more mortgage rates on Zillow

Iowa has it all — cityscapes, rolling hills and gorgeous plains. Plus, interest rates are low and the housing market is thriving. Whether you’re looking for lenders for first time buyers or refinance opportunities, opportunities will come your way — as long as you’re prepared to shop around.

Best Mortgage Lenders in Iowa

Benzinga put together a comprehensive list of the best mortgage lenders in the Hawkeye State.

New American Funding New American Funding
Get started securely through New American Funding’s website
Avg. Days to Close Loan
31-40
Minimum Credit Score
620
1 Minute Review

New American Funding offers conventional, proprietary and government-backed mortgages. Its variety of mortgage options make it worth checking out, especially if you have unique financial needs. It also offers options for refinancing and tapping into your home equity. Its products aren’t available to New York or Hawaii residents.

Best For
  • Self-employed individuals
  • Those with lower credit scores
  • Those who want access to a variety of mortgage options
Pros
  • Offers several mortgage options
  • Website and app to manage your mortgage
  • Educational resources like calculators, blogs and home buyer guides
Cons
  • Not available in New York or Hawaii
Rocket Mortgage Rocket Mortgage
Get started securely through Rocket Mortgage’s website
Avg. Days to Close Loan
30
Minimum Credit Score
580
1 Minute Review

Rocket Mortgage is one of the best mortgage lenders on the market, making it easy to apply for a home loan entirely online. Its streamlined preapproval process and quick access to customer service set it apart from other online lenders. Rocket Mortgage offers a large variety of mortgages and is backed by the largest mortgage lender, Quicken Loans. Whether you need help or know exactly what you’re looking for, Rocket Mortgage matches you with the right mortgage type and helps you quickly complete your online application.

Best For
  • Homebuyers who are looking to complete the mortgage application process on their own
  • Homebuyers who have found their dream home and are looking to move through the approval process quickly
  • Homebuyers with good credit scores looking to review their mortgage options
  • Current homeowners looking to refinance within the next few months
Pros
  • Rocket Mortgage allows you to move at your own pace, guiding you through each step of the process. After you answer all the application questions, Rocket Mortgage lets you know if you’re approved and show your personalized mortgage recommendations
  • You can submit checking and savings account information, tax returns and other financial documents online — a feature that sets Rocket Mortgage apart from online competitors
  • RateShield allows you to lock in your Rocket Mortgage approved rate for up to 90 days
  • The home loan application process can be completed in minutes, allowing you to find out if you qualify for a mortgage right away
  • The online software allows you to navigate through the entire home buying process, from approval to home closing. Once you’re approved and you make an offer on your home, Rocket Mortgage offers online tools that will help you move through the rest of the closing process
Cons
  • While Rocket Mortgage has customer specialists ready to answer your questions and provide guidance, if you prefer sitting across from a person when filling out financial forms, this lender might not be right for you
  • You can’t easily view all of Rocket Mortgage’s home loan options prior to applying. It offers conventional, FHA, USDA and VA loans, but you’ll need to apply to find out more about the mortgage types within these offerings and which ones you’re eligible for
Morty Morty
get started securely through Morty’s website
Avg. Days to Close Loan
21
Minimum Credit Score
680
1 Minute Review

Morty is a mortgage broker that uses technology to speed up the loan process. While it has limited mortgage options and a relatively high minimum credit score requirement, its competitive rates and transparent process make it worth considering if you meet the criteria.

Best For
  • Those with good credit
  • Conventional loan borrowers
  • Primary residence borrowers
Pros
  • Competitive rates
  • Fast, verified preapproval
  • Expedited closing with clear instructions
Cons
  • Only offers conventional loans
  • Not available in 15 states
SoFi Mortgage SoFi Mortgage
get started securely through SoFi Mortgage’s website
loanDepot Mortgage loanDepot Mortgage
Compare Lenders securely through loanDepot Mortgage’s website

What is a Mortgage Rate?

Mortgages are a necessity for almost anyone who’s tackling a loan — you can pay a mortgage back in installments over a fixed period of time. However, you’ll be charged interest in the process, and that interest is calculated as a percentage of the amount you borrow. That percentage is known as the interest rate, a.k.a. the “mortgage rate.”

What Factors Impact Your Mortgage Rate?

The rate you pay for your mortgage won’t be identical to what the next person pays, even if you live in the same part of Iowa. Here are a few factors that will affect the purchase quote you receive from a lender:

  • Your credit score: Your credit history is logged by creditors and recorded by the 3 credit bureaus — Equifax, TransUnion and Experian — and the results are packaged up as a number. You’ll need a credit score around 580 to qualify for the most flexible loan type.
  • Your income and debt: You probably know how well you can meet your expenses each month, but your lender will eyeball your monthly income amount that goes toward your debt. That way, your lender can evaluate how risky you are. Not only will this determine whether you’re approved, it will also influence your mortgage rate.
  • Your investment in the purchase: The lender will expect you “buy-in” a little. This investment is called a down payment, and it’s expected at closing. You’ll need to put at least 3% of the purchase price down, but the more you put down, the lower your rate will be.
  • Type of lender: You have a wide range of lender options wherever you live in Iowa. You may get a more competitive rate from a local lender. Don’t rule out credit unions, which are often open to the community at large and can sometimes beat rates from traditional lenders.
  • Supply and demand: Lenders tend to drop their rates to try to compete when demand slows. As demand picks back up, lenders might raise those rates to maximize the profit they can make before the market slows again.
  • The Federal Reserve: Inflation in general is heavily influenced by the Federal Reserve. The adjustments it makes to the money supply have a direct impact on the economy. The Federal Reserve also bases its actions on how the economy performs.
  • Your decision-making process: You’ll likely find most of the rates you’re quoted fall within the same range, but you may save a percentage point or 2 by getting multiple quotes and choosing the best.

What is a Mortgage Type?

The type of mortgage you choose can also affect your interest rate. Here are some of the loan types to consider:

  • Conventional: A conventional is not backed by the federal government. This makes it riskier for the lender — you’ll often see a higher interest rate.
  • FHA: First time and credit-challenged buyers often opt for this loan, which is backed by the Federal Housing Administration. Due to its government insurance against default, lenders can typically take on lower-credit borrowers and a reduced down payment amount. Interest rates will also often be lower with an FHA loan.
  • USDA: It’s worth checking your eligibility for a USDA loan unless you live in a major metropolitan area. These government-backed loans go to home purchases in rural areas — a large percentage of Iowa land qualifies for a USDA loan.
  • VA: You may qualify for a Veterans Administration-backed loan if you’re a former military member. You’ll get a zero down payment loan and low-interest rates.

What is a Mortgage Term?

The rate you pay will be influenced by the length of your loan, no matter where you live in Iowa. Here are the most common mortgage terms.

  • 30-year fixed: A fixed loan sets a single rate you pay for the entirety of your loan. A 30-year loan stretches your payments over 30 full years, so your payments are lower compared to a 15-year loan. Lenders will charge a higher rate for this type.
  • 15-year fixed: A fixed loan with a shorter duration bumps up the amount you’ll pay each month. But the reduced interest rate can save you a lot of money over the course of your loan. 
  • 5/1 ARM: Adjustable-rate mortgages are ideal if your income is likely to increase in the coming years. A 5/1 ARM means you’ll get 5 years of payments at a fixed interest rate, but that rate will change at the end of the 5 years. At that point, you’ll pay the going rate.

Current Mortgage Rates in Iowa

Benzinga monitors interest rates and updates the figures below as frequently as possible to ensure that you have the most recent data available.

Loan Type Rate APR
30-year fixed 5.695% 5.787%
15-year fixed 4.95% 5.221%
7/1 ARM (adjustable rate) 5.75% 4.988%
5/1 ARM (adjustable rate) 5.535% 4.594%
Rates based on an average home price of $152,885 and a down payment of 20%.
See more mortgage rates on Zillow

Calculating Interest in Iowa

A mortgage is calculated using a process called amortization. Amortization means that interest is recalculated as you gradually pay off your home. Whether you’re getting a purchase or refinance quote, here’s what you can expect to pay over a 30-year loan in interest.

City Average Home Value Loan Term Current Rate Downpayment (20%) Monthly Payment Total Interest Paid
Des Moines $144,600 30-year fixed 4.792% $28,920 $606.37 $102,613.20
Cedar Rapids $134,200 30-year fixed 4.792% $26,840 $562.76 $95,233.60
Iowa City $225,600 30-year fixed 4.966% $45,120 $965.11 $166,959.60
Davenport $130,400 30-year fixed 4.792% $26,080 $546.83 $92,538.80
See more mortgage rates on Zillow

Lender Credit Score Minimums in Iowa

As you pay bills, you build a credit score, and that score can help you get loans for large purchases — a car, a home or even a business. Your score will start to nudge downward if you’ve missed payments or have defaulted on a loan in the past.

Conventional loan lenders will typically want to see a score in the 600s, although FHA-backed loans will let you drop below 600.

LenderMinimum Credit Score Required
Keller Mortgage600
Flagstar620
Rocket Mortgage®620
Vylla620
U.S. Bank620

Making Homes More Affordable in Iowa

Iowa is an affordable state with plenty of job opportunities. Whether you already live in the Hawkeye State or are thinking of relocating, low-interest rates can make it a great time to buy a home. Shop around so you get the best deal on interest and save money when you’re ready to buy a home.

Get Ready for Take Off

Rocket Mortgage® is an online mortgage experience developed by Quicken Loans®, America’s largest mortgage lender. Rocket Mortgage® makes it easy to get a mortgage — you just tell the company about yourself, your home, your finances and Rocket Mortgage® gives you real interest rates and numbers. You can use Rocket Mortgage® to get approved, ask questions about your mortgage, manage your payments and more.

You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.