Best Mortgage Rates in Iowa (IA) for 10-15-20-30-Year Fixed, Jumbos, and 3/1- 7/1 ARMs | New Homes & Refinancing
Today, the median down payment for a single-family home or condo is $18,850, or 7.3 percent of the total median price of all homes purchased.
With rising home down payment costs, finding an affordable and manageable Iowa mortgage rate is becoming even more important for new homeowners.
For those planning on refinance or buying a home in Waterloo, Iowa City, Omaha, Des Moines, Sioux City, or any other city in Iowa, it’s important to take the time to find the best mortgage rates in IA.
It’s no secret that Iowa mortgages represent long-term commitments, and having access to great IA mortgage rates can do wonders to set new homeowners up for financial success and stability down the road.
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Which Iowa City Are You Located in?
When it comes to finding the best IA mortgage rates, there are plenty of factors to consider, especially for a first-time home buyer in Iowa.
For many Iowa mortgage lenders in Omaha, Des Moines, Cedar Rapids, Davenport, Iowa City, Sioux City, and other cities in Iowa, the location of the home will play a large role in what type of IA mortgage rates are available.
This means that homes across the state could have varying IA mortgage rates based on the individual city, neighborhood, and the condition of the home itself.
While you are browsing through current mortgage rates in IA, it may be worthwhile to check the rates for neighboring cities to explore other IA mortgage rates that could potentially be more affordable over the long run.
See the table below for a list of some of the largest cities in the state offering a wide range of Iowa mortgages.
| Top Iowa Cities | Population (2016) |
| Omaha | 446,970 |
| Des Moines | 215,472 |
| Cedar Rapids | 131,127 |
| Davenport | 102,612 |
| Sioux City | 82,872 |
| Iowa City | 74,398 |
| Waterloo | 67,934 |
| Ames | 66,191 |
| West Des Moines | 64,560 |
| Council Bluffs | 62,524 |
| Ankeny | 58,627 |
| Dubuque | 58,531 |
Source: Google
Getting Better Iowa Mortgage Rates with Larger Down Payments
Although some IA mortgage lenders require a down payment of 3 percent, the best way to secure great IA mortgage rates is to put down at least 20 percent of the home’s value.
Along with getting more favorable mortgage rates in IA, a higher down payment means that you can avoid paying extra for private mortgage insurance (PMI).
IA mortgage lenders require the purchase of mortgage insurance for smaller down payments to protect their investments in case borrowers stop making payments.
Typically, borrowers must continue paying until they reach a loan-to-value ratio of 80 percent. While it may not help you cut down costs over the long-term, it certainly does provide short-term affordability for an Iowa mortgage.
According to Zillow, the average premium for PMI ranges between $30-$70 for every $100,000 borrowed, which could make it an affordable compromise for borrowers that can’t put down the full 20 percent.
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Saving for a Larger Down Payment
Many homeowners struggle with saving enough money for a sizable down payment to get the best IA mortgage rates.
If you don’t have already established savings, the thought of putting aside thousands of dollars can seem overwhelming.
Below, we’ve compiled a few tips to help you save for a down payment and get the best Iowa mortgage rate:
Re-Examine Your Budget
While some expenses are non-negotiable, like rent or car insurance, sticking to a monthly budget can help you identify overspending and help you establish a savings for a down payment on an Iowa mortgage.
Free budgeting tools—like those from Mint and Personal Capital—will take your monthly expenditures and sort them into categories like food, restaurants, bars, and entertainment.
For example, if you find that you’re spending tons of money each month on dining out, you can use budgeting tools to decrease spending and allocate savings towards your new Iowa mortgage fund.
Dubuque, IA
Pick Up Additional Income
Earning additional income is a great way to increase your financial stability and build your down payment savings to lock in the best mortgage rates in IA.
There are plenty stay-at-home jobs to consider, or you can pick up a part-time job to supplement full-time income.
Make a commitment to apply additional income to your Iowa mortgage fund, and you will be in good shape to contribute a 20 percent down payment.
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Conclusion – Finding a Top Mortgage Loan for a Home in Iowa
Finding great mortgage rates in IA may take time, but the payoff is certainly worth the effort.
As you search for the best IA mortgage rates, consider the following questions:
- Can I use local banks or credit unions for affordable Iowa mortgage rates?
- Can I get better Iowa refinance rates from online-only lenders?
- Which lenders offer competitive IA mortgage rates in Denver, Aurora, Lakewood, or Iowa Springs?
Ultimately, finding the best mortgage rates in IA comes from analyzing long-term affordability and partnership.
No matter which of the top Iowa mortgage lenders you choose, it’s important to partner with a financial institution that you trust and are comfortable working with throughout the length of your Iowa mortgage.
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