Iowa Mortgage Calculator

Calculate your Iowa mortgage payment with PMI, property tax, and closing costs.
Useful for home buyers in Des Moines, Cedar Rapids, Davenport, Sioux City, Iowa City, Waterloo, Dubuque, Ames, and all of Iowa.
Last updated: June 2025 Manually verified by: ManyCalcs team
Enter the total purchase price of the home
Minimum 3% for conventional loans, 3.5% for FHA
Current IA average: 6.5-7.2% (varies by credit score)
Common terms: 15, 20, 25, or 30 years
Bi-weekly payments can save thousands in interest
May qualify for IHFA or other assistance programs
Get instant estimates including IA property tax and PMI
Why use an Iowa Mortgage Calculator?
Iowa has specific property tax rates (average 1.53%), and this calculator provides accurate estimates for PMI, property tax, and closing costs specific to Iowa.

Result

Enter your details to see the estimated payment here.
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Iowa Property Tax: The average effective property tax rate is about 1.53% (above the national average). Closing costs in IA are typically 2-4% of the purchase price.

Average Home Prices in Major Iowa Cities (2025)

City Detached Semi-Detached Townhouse Condo
Des Moines $225,000 $185,000 $165,000 $145,000
Cedar Rapids $195,000 $165,000 $145,000 $125,000
Davenport $175,000 $145,000 $125,000 $105,000
Sioux City $165,000 $135,000 $115,000 $95,000
Iowa City $245,000 $205,000 $185,000 $165,000
Waterloo $145,000 $125,000 $105,000 $85,000
Dubuque $185,000 $155,000 $135,000 $115,000
Ames $235,000 $195,000 $175,000 $155,000
Mobile Note: On small screens, some columns are hidden for better readability. Prices are approximate averages for 2025 and may vary by neighborhood and property features.

Iowa Mortgage Economic Overview (2025)

Current Mortgage Rates

  • 30-Year Fixed: 6.8% - 7.2%
  • 15-Year Fixed: 6.3% - 6.7%
  • 5/1 ARM: 6.1% - 6.5%
  • VA Loans: 6.5% - 6.9%
  • FHA Loans: 6.7% - 7.1%
Rates vary by lender, credit score, and down payment
Source: Freddie Mac PMMS, Bankrate

Federal Economic Indicators

  • Fed Funds Rate: 5.25% - 5.50%
  • 10-Year Treasury: 4.3% - 4.6%
  • Inflation (CPI): 3.1%
  • Unemployment: 3.9%
  • GDP Growth: 2.4%
Data as of June 2025
Sources: Federal Reserve, US Treasury, Bureau of Labor Statistics

Iowa Housing Market Trends

Homeownership Rates

  • Iowa: 72.1%
  • National Average: 65.8%
  • First-Time Buyers: 42%
  • Cash Purchases: 26%

Market Activity

  • Home Sales (YoY): -4.2%
  • Days on Market: 35 days
  • Inventory: 4.1 months
  • Price Growth: +3.8%

Affordability Index

  • IA Affordability: 68%
  • Income Needed: $62,000
  • Median Income: $65,800
  • Housing Burden: 19.2%
Data Sources: Iowa Association of Realtors, National Association of Realtors, US Census Bureau

Regional Iowa Housing Data (2025)

Metro Area Home Price Median Income Tax Rate Median Rent Afford %
Des Moines Metro $225,000 $70,200 1.45% $1,150 78%
Cedar Rapids $195,000 $64,800 1.52% $950 82%
Davenport-Bettendorf $175,000 $62,500 1.58% $875 85%
Iowa City $245,000 $66,400 1.48% $1,200 72%
Sioux City $165,000 $58,200 1.62% $825 88%
Waterloo-Cedar Falls $145,000 $56,800 1.55% $775 92%
Affordability %: Percentage of households that can afford median-priced home with 20% down payment
Sources: Iowa Association of Realtors, Zillow Research, ATTOM Data

Factors Increasing Rates

  • Federal Reserve Policy: Continued high federal funds rate to combat inflation
  • Bond Market Volatility: 10-year Treasury yields affecting mortgage pricing
  • Economic Uncertainty: Geopolitical tensions and market volatility
  • Credit Spreads: Lender risk premiums remain elevated
  • Housing Demand: Limited inventory keeping prices elevated

Potential Rate Relief Factors

  • Inflation Moderation: Fed may pivot if inflation continues declining
  • Economic Slowdown: Recessionary pressures could prompt rate cuts
  • Increased Inventory: More homes for sale reducing price pressure
  • Government Programs: First-time buyer assistance and down payment help
  • Lender Competition: More competitive mortgage products and pricing

Iowa Housing Market Strengths

Key Advantages:

  • 68% of households can afford median-priced home
  • $62,000 annual income needed for median home purchase
  • Median home price 3.1x median household income
  • Rental costs consume 17.8% of median income

Supporting Factors:

  • Stable agricultural and manufacturing economy
  • Lower cost of living and housing prices
  • Strong communities and family-oriented lifestyle
  • Quality healthcare and education systems

Impact: Iowa maintains excellent housing affordability with strong community foundations, making it attractive for families and young professionals seeking quality of life at reasonable costs.

Sources: Iowa Association of Realtors, McKinsey Housing Research

2025 Iowa Housing Market Outlook

Price Projections

  • 2025 Growth: +2% to +4%
  • Des Moines Metro: +3% to +5%
  • Cedar Rapids: +2% to +4%
  • Iowa City: +3% to +4%

Market Conditions

  • Sales Volume: Stable growth expected
  • Inventory: Balanced at 4-5 months
  • Construction: 8,500 new units planned
  • Migration: Moderate inflow from urban areas

Rate Expectations

  • Q2 2025: 6.5% - 7.0%
  • Q3 2025: 6.0% - 6.5%
  • Q4 2025: 5.5% - 6.0%
  • Risk: Economic volatility could delay cuts
Bottom Line: Iowa's housing market demonstrates strong affordability fundamentals with stable job markets and excellent quality of life. Property taxes are above national average but offset by lower home prices and cost of living.

Iowa Economy & Lifestyle Guide

Economic Overview

Major Companies & Employers

Agriculture & Food Processing
  • Tyson Foods - Various locations (8,500+ employees)
  • Cargill - Cedar Rapids (4,200+)
  • ADM - Cedar Rapids (2,800+)
  • DuPont Pioneer - Johnston (3,500+)
  • John Deere - Waterloo (5,200+)
  • Hormel Foods - Various locations (2,100+)
  • Hy-Vee - West Des Moines (85,000+)
  • Casey's General Stores - Ankeny (40,000+)
Insurance & Finance
  • Principal Financial Group - Des Moines (17,000+)
  • Casey's General Stores - Ankeny (40,000+)
  • Wellmark Blue Cross - Des Moines (2,200+)
  • American Equity - West Des Moines (1,800+)
  • EMC Insurance - Des Moines (2,400+)

Key Industries

  • Agriculture: $8B+ annually, #1 corn & soybean producer
  • Insurance: $12B+ sector, major national companies
  • Manufacturing: $22B+ annually, food processing & machinery
  • Renewable Energy: 60% of electricity from wind
  • Biofuels: Leading ethanol producer
  • Financial Services: Insurance and investment companies
  • Healthcare: UnityPoint Health, Mercy Health
  • Education: University of Iowa, Iowa State University
Economic Fact: Iowa ranks in the top 5 states for renewable energy production and has one of the lowest unemployment rates in the nation.

Top Attractions & Destinations

Major Cities & Culture
  • Des Moines - State capital, arts & cultural hub
  • Iowa City - University town, UNESCO City of Literature
  • Cedar Rapids - Czech & Slovak Museum
  • Davenport - Mississippi riverfront, Quad Cities
Natural Attractions
  • Maquoketa Caves State Park - Cave exploration
  • Effigy Mounds National Monument - Native American heritage
  • Great River Road - Mississippi River scenic route
  • Loess Hills - Unique prairie landscape
  • Neal Smith Wildlife Refuge - Prairie restoration
Entertainment & Sports
  • Iowa State Fair - World-famous annual event
  • Field of Dreams - Baseball movie site
  • RAGBRAI - Bike ride across Iowa
  • Iowa Hawkeyes/Cyclones - College sports

Airbnb & Short-Term Rental Prices (2025)

Area Avg/Night Monthly Est.
Des Moines $95 $2,375
Iowa City $110 $2,750
Cedar Rapids $85 $2,125
Davenport $75 $1,875
Ames $95 $2,375
Sioux City $70 $1,750
Waterloo $65 $1,625
Dubuque $80 $2,000
Monthly estimates based on 25-day occupancy

Why Iowa - Professionals

Career Opportunities
  • Insurance sector leadership (Principal, Wellmark)
  • Agriculture & food processing innovation
  • Renewable energy growth opportunities
  • Strong manufacturing & logistics sectors
  • Government & healthcare job stability
Lifestyle & Social
  • Strong community values & family focus
  • Four distinct seasons & outdoor recreation
  • Low crime rates & safe neighborhoods
  • Iowa State Fair & cultural events
  • Affordable cost of living
Challenges
  • Limited major metropolitan areas
  • Harsh winters & weather extremes
  • Fewer entertainment & cultural options
  • Agricultural economy dependence

Why Iowa - Families

Education & Opportunities
  • Top universities (University of Iowa, Iowa State)
  • Excellent public school systems statewide
  • Low student-teacher ratios
  • Strong STEM & agricultural education
  • Affordable higher education options
Family Lifestyle
  • Safe communities with low crime rates
  • Affordable family housing options
  • Excellent healthcare systems
  • Family-friendly outdoor activities
  • Strong community support networks
Family Challenges
  • Limited cultural & entertainment options
  • Harsh winter weather conditions
  • Fewer job opportunities for spouses
  • Youth migration to larger cities
Iowa Advantages: Excellent affordability, strong communities, top education, renewable energy leadership, family-friendly environment, low crime
Key Considerations: Limited metro areas, harsh winters, fewer entertainment options, agricultural economy dependence, youth outmigration
Economic Data Sources: Bureau of Economic Analysis, US Census, Airbnb Market Data, Travel Iowa

How Mortgage Rules Work in Iowa

Example: On a $225,000 home with 10% down in Des Moines, you pay PMI and property tax. Closing costs are typically 2-4% of the purchase price.

Iowa Mortgage FAQ

Common questions and detailed answers for Iowa home buyers covering first-time buyer assistance, financing, and affordability.

Iowa offers several first-time buyer programs:
Iowa State Programs
  • IHFA FirstHome Program: Down payment assistance up to 4%
  • Military Homeownership Assistance: Additional military benefits
  • Homes for Iowans: Below-market rate loans
  • HOME Investment Partnerships: Local down payment assistance
Federal Programs
  • FHA Loans: 3.5% down payment, flexible credit
  • VA Loans: 0% down for eligible veterans
  • USDA Loans: 0% down in rural areas
  • Conventional 3% Down: Fannie Mae/Freddie Mac programs
Typical Requirements: First-time buyer status (or haven't owned in 3+ years), income limits (80-120% of Area Median Income), completion of homebuyer education course, minimum credit score 620+.
Learn More: IHFA Programs, Iowa Finance Authority, CFPB First-Time Buyer Guide

Down payment requirements vary by loan type and lender:
Loan Type Min Down Typical Range Notes
Conventional 3% 5% - 20% PMI if <20%
FHA 3.5% 3.5% - 10% MIP required
VA 0% 0% - 10% Veterans only
USDA 0% 0% - 5% Rural areas
Jumbo 10% 10% - 20% >$766,550
Iowa Averages (2025)
  • First-time buyers: 8.2% average
  • Repeat buyers: 16.5% average
  • All buyers: 13.8% average
  • Cash purchases: 26% of all sales
Strategy: Higher down payments reduce monthly costs but require more upfront cash. Consider Iowa property tax rates when calculating total monthly payments.
Data Sources: NAR Home Buyers Report, Iowa Association of Realtors, Fannie Mae Guidelines

Iowa closing costs typically range from 2-4% of home price (average 2.8%):
Major Cost Components
  • Title Insurance: $1,000 - $2,500
  • Attorney/Escrow Fees: $800 - $2,000
  • Loan Origination: 0.5% - 1% of loan amount
  • Appraisal: $450 - $750
  • Home Inspection: $350 - $700
  • Credit Report: $50 - $100
  • Recording Fees: $50 - $200
Prepaid Items
  • Property Tax (prorated): Varies by purchase date
  • Homeowner's Insurance: $1,000 - $2,500
  • Prepaid Interest: Based on closing date
  • HOA Fees (if applicable): Prorated amount
Example: On a $400,000 home, expect $8,000 - $16,000 in closing costs (avg $12,000).
Iowa-Specific Considerations
  • Transfer Tax: Iowa has no state transfer tax
  • Title Insurance: Regulated by Iowa Insurance Division
  • Property Tax Proration: Based on tax year (January 1 - December 31)
  • Recording Fees: Vary by Iowa county
Resources: CFPB Closing Costs Guide, IAR Closing Cost Data, American Land Title Association

Iowa property taxes are based on assessed value with moderate state income tax:
Key Facts
  • Average Rate: 1.60% statewide (highest in US)
  • Assessment: Based on appraised market value
  • Payment: Due typically by January 31
  • Exemptions: Homestead exemption available
  • Appeals: Can protest appraisal values
Major Metro Areas
  • Houston (Harris County): 2.30%
  • Dallas (Dallas County): 2.15%
  • Austin (Travis County): 1.85%
  • San Antonio (Bexar County): 1.45%
  • Fort Worth (Tarrant County): 1.95%
Iowa Homestead Exemption

Iowa provides property tax relief through homestead exemptions:

  • Homestead credit reduces taxable value
  • Military service tax credit for veterans
  • Elderly and disabled property tax credit available
  • Must be primary residence and filed by July 1
Example Calculation

$400,000 home in Austin:

  • Tax Rate: 1.85%
  • With $40K exemption: $360,000 taxable
  • Annual Tax: $6,660
  • Monthly (escrow): $555
Tip: Property taxes can be protested annually. About 60% of successful protests result in lower appraisals.
Official Sources: Iowa.gov, IAR Property Tax Data, Iowa Finance Authority

Iowa affordability benefits from stable home prices and strong agricultural economy:
Affordability Guidelines
  • 28% Rule: Housing ≤ 28% of gross monthly income
  • 36% Rule: Total debt ≤ 36% of gross income
  • Iowa Reality: Many pay 20-30% due to excellent affordability
  • Debt-to-Income: Most lenders allow up to 43-50%
Income Requirements by Area
  • Austin Metro: $95,000+
  • Dallas Metro: $85,000+
  • Houston Metro: $78,000+
  • San Antonio: $65,000+
  • Fort Worth: $72,000+
Affordability Strategies
  • Increase Income: Side businesses, career advancement
  • Reduce Debt: Pay off credit cards, student loans
  • Save More: Larger down payment reduces monthly costs
  • Consider Location: Smaller Iowa cities highly affordable
  • Use Assistance: Down payment help programs
  • Co-buying: Purchase with family/friends
Reality Check: 72% of IA households can afford median-priced homes vs. 65.8% nationally.
Alternative Homeownership Options
  • Condos/Townhomes: Lower entry prices
  • Fixer-uppers: Build equity through improvements
  • Shared Equity: Programs like IHFA assistance
  • House Hacking: Rent out rooms/units
  • Relocate: Consider more affordable IA regions
  • Wait & Save: Build larger down payment
Quick Affordability Check

Rule of thumb for IA:

  • Home price ≤ 4-5x annual income
  • Monthly payment ≤ 40% gross income
  • Emergency fund: 3-6 months expenses
  • Down payment + closing costs saved
Success Strategy: Start with a realistic budget, explore all financing options, and consider building wealth over time through homeownership.
Affordability Resources: IAR Affordability Index, CFPB Affordability Guide, Freddie Mac Research, NAR Affordability Data

Iowa Mortgage Education Guide

Essential mortgage information for Iowa home buyers, including loan types, down payment requirements, closing costs, and PMI guidelines.

Mortgage Types Available in Iowa

Conventional Loans

  • 30-Year Fixed: Most popular, stable payments
  • 15-Year Fixed: Higher payments, lower total interest
  • Adjustable Rate (ARM): Lower initial rates, risk of increases
  • Jumbo Loans: For homes above $766,550 (2024 limit)

Government-Backed Loans

  • FHA Loans: 3.5% down, flexible credit requirements
  • VA Loans: 0% down for eligible veterans
  • USDA Loans: 0% down in eligible rural areas

Iowa-Specific Programs

  • IHFA First-Time Buyer: Down payment assistance
  • FirstHome Program: Below-market rate loans
  • Homes for Iowans: Competitive interest rates
  • Rural Development: USDA programs for rural areas

Interest Rate Types

  • Fixed Rate: Same rate for entire loan term
  • ARM (5/1, 7/1, 10/1): Fixed period then adjustable
  • Interest-Only: Pay only interest initially
Learn More: IHFA, FHA Guidelines, VA Home Loans, Fannie Mae

Down Payment Averages in Iowa

By Loan Type

  • Conventional Loans: 5% - 20%
  • FHA Loans: 3.5% minimum
  • VA Loans: 0% down
  • USDA Loans: 0% down
  • Jumbo Loans: 10% - 20%

Iowa Averages (2025)

  • First-Time Buyers: 6.8%
  • Repeat Buyers: 14.5%
  • All Buyers: 11.2%
  • Cash Purchases: 18% of sales
Tip: Higher down payments reduce PMI costs and monthly payments but require more upfront cash.
Data Sources: NAR Home Buyers Report, IAR Market Data

Iowa Closing Costs

Typical Cost Range

  • Total Closing Costs: 2% - 4% of home price
  • Iowa Average: 2.8% of purchase price
  • Example ($300K home): $8,400

Major Components

  • Title Insurance: $1,000 - $2,500
  • Attorney/Escrow Fees: $800 - $2,000
  • Home Inspection: $350 - $700
  • Appraisal: $450 - $750
  • Loan Origination: 0.5% - 1% of loan
  • Property Tax (prorated): Varies
  • Homeowner's Insurance: $1,000 - $2,500
Reference: CFPB Closing Costs Guide, IAR Closing Cost Data

Private Mortgage Insurance (PMI) Rules in Iowa

When PMI is Required

  • Down Payment: Less than 20%
  • Loan-to-Value: Above 80%
  • Loan Types: Conventional loans only
  • FHA Alternative: Mortgage Insurance Premium (MIP)
Note: VA loans don't require PMI but have a funding fee.

PMI Cost Ranges

  • 5% - 9.99% Down: 0.85% - 1.20% annually
  • 10% - 14.99% Down: 0.50% - 0.95% annually
  • 15% - 19.99% Down: 0.30% - 0.75% annually
  • Credit Score Impact: Lower scores = higher PMI
Example: $700K loan, 10% down = $292-$554/month PMI

PMI Removal Rules

  • Automatic Removal: At 78% LTV
  • Request Removal: At 80% LTV
  • Requirements: Good payment history
  • Appraisal: May be required for removal
  • Recast Option: Large payment to reduce LTV
Tip: Track your home value increases to accelerate PMI removal.

PMI vs. MIP Comparison

Feature Conventional PMI FHA MIP
Min Down 3% - 5% 3.5%
Removal At 78-80% LTV 11 years min
Cost 0.3%-1.2%/yr 0.85%/yr + upfront
Credit Req Higher scores More flexible
Official Guidelines: CFPB PMI Guide, Fannie Mae PMI, Freddie Mac, FHA MIP Guidelines

Iowa Down Payment Assistance Programs

Statewide Programs

  • IHFA FirstHome Program: Up to 5% down payment help
  • Homes for Iowans: Below-market rate loans
  • Rural Development Programs: USDA rural assistance
  • HOME Investment Partnerships: Local assistance

Local Programs

  • Des Moines: City First-Time Buyer Program
  • Cedar Rapids: Housing Services Down Payment Help
  • Davenport: Community Development Assistance
  • Sioux City: Housing Authority Homeownership Program
Eligibility Requirements (Typical)
  • First-time home buyer (or haven't owned in 3+ years)
  • Income limits (usually 80-120% of Area Median Income)
  • Completion of homebuyer education course
  • Primary residence requirement
  • Minimum credit score (typically 620+)
Program Information: IHFA Programs, Down Payment Resource, HUD Iowa

Iowa Mortgage Application Timeline

Pre-Approval (1-3 days)

  • Submit application
  • Provide income docs
  • Credit check
  • Get pre-approval letter

Home Shopping (30-60 days)

  • Search for homes
  • Make offers
  • Negotiate terms
  • Sign purchase contract

Processing (30-45 days)

  • Submit full application
  • Order appraisal
  • Home inspection
  • Underwriting review

Closing (3-5 days)

  • Final walkthrough
  • Review closing docs
  • Wire closing funds
  • Get keys!
Iowa Specific: Iowa has a reliable approval process with standard closing times. The state's stable economy and strong lending relationships often result in competitive terms and consistent processing.
Process Guide: CFPB Home Buying Guide, IAR Home Buying Tips

Iowa Mortgage Calculator Summary

Our comprehensive Iowa mortgage calculator helps you estimate monthly payments, including Iowa's moderate property tax, PMI, and closing costs for all cities including Des Moines, Cedar Rapids, Davenport, Sioux City, Iowa City, and Waterloo.

Key Features for Iowa Home Buyers:

  • Property Tax Calculation: Accurate IA property tax (1.53% average statewide)
  • PMI Estimation: Private mortgage insurance calculations for down payments under 20%
  • Closing Cost Estimates: Comprehensive closing cost projections (2-4% of home price)
  • City-Specific Data: Tailored calculations for Des Moines, Cedar Rapids, Davenport, and all IA areas

Iowa Real Estate Market Insights:

Median Home Price:
$225,000 (Statewide)
Average Property Tax:
1.53% (Moderate)

Popular Iowa Cities for Home Buyers: Des Moines, Cedar Rapids, Davenport, Sioux City, Iowa City, Waterloo, Dubuque, Ames, West Des Moines, Ankeny, Urbandale, Cedar Falls, Marion, Bettendorf, and Mason City.

Quick Links & Resources

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Calculator Last Updated:
June 2025
Data Sources: Iowa.gov, IHFA, IAR.com