HELOC rates in Iowa rose from 4.4% in mid-2021 to 8.4% by November 2024. Continued increases could mean higher borrowing costs for homeowners. Consider securing a rate now to mitigate potential future expenses.
HELOC
Best HELOC Rates in Iowa
Updated: November 19, 2024
Advertising & Editorial Disclosure
Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Iowa with an 80% LTV is 8.2%, compared with 8.5% for a 90% LTV.
HELOC rates vary by city in Iowa. Milton has an average APR of 6.9%, whereas Cumberland's is 9.8%.
Different lenders offer varying rates for the same loan types. First Class Community Credit Union's average APR is 5.5%, whereas Marine Credit Union's is 10.3%.
Current HELOC Rates in Iowa
Loading...
HELOC Rates in Iowa by LTV Ratio
HELOC rates in Iowa can fluctuate based on your loan-to-value (LTV) ratio and line limit. A lower LTV means more equity in your home, reducing lender risk and potentially lowering your rate. For instance, an 80% LTV is less risky than a 90% LTV, making it less likely you'll default on your HELOC.
The table below allows you to filter different loan amounts, providing a clearer picture of your potential options.
Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000
HELOC Rates in Iowa by City
HELOC rates in Iowa vary by city due to differences in local housing markets and lender competition. For instance, cities with strong real estate markets may offer lower rates, reducing lender risk.
Use the table below to filter by city and see average APRs for $50K and $100K HELOCs.
Data filtered by:Results filtered by:
City:
City:Des Moines
| $100,000 | 8.2% |
| $50,000 | 8.2% |
HELOC Rates in Iowa by Lender
HELOC interest rates in Iowa vary by lender due to different pricing strategies and risk assessments. Understanding these differences can help you find a competitive rate.
The table below shows the five lenders in Iowa offering the lowest average APRs, making it easier for you to compare options.
| First Class Community Credit Union | 5.5% |
| Journey Credit Union | 6.0% |
| Empeople Credit Union | 6.6% |
| Aim Credit Union | 6.7% |
| Success Bank | 6.9% |
HELOC rates today can vary widely among lenders in the same city. Use the table below to filter by city and compare average APRs, helping you find the most competitive rate in your area.
Data filtered by:Results filtered by:
City:
City:Des Moines
| Journey Credit Union | Credit Union | 6.0% |
| Collins Community Credit Union | Credit Union | 7.5% |
| Financial Plus Credit Union | Credit Union | 7.8% |
| Greater Iowa Credit Union | Credit Union | 8.0% |
| BMO BANK NATIONAL ASSOCIATION | Commercial Bank | 8.2% |
| Earlham Savings Bank | Commercial Bank | 8.3% |
| Affinity Credit Union | Credit Union | 8.5% |
| Community State Bank | Commercial Bank | 8.5% |
| First Interstate Bank | Commercial Bank | 8.5% |
| Two Rivers Bank & Trust | Commercial Bank | 8.5% |
| Community Choice Credit Union | Credit Union | 9.0% |
| Bank of America | Commercial Bank | 9.5% |
| U.S. Bank National Association | Commercial Bank | 10.0% |
COMPARING HELOC RATES IN IOWA: BANKS VS. CREDIT UNIONS
HELOC rates in Iowa vary between banks and credit unions, with commercial banks typically offering higher rates. Currently, the best HELOC rate for commercial banks in Iowa averages 8.5%, compared to 7.9% for credit unions. Credit unions are not-for-profit institutions that usually provide lower rates due to their operational structure.
When choosing between the two, consider more than just rates. Banks may offer greater convenience, while credit unions often provide better customer service and lower fees. It's important to check membership requirements for credit unions and be aware of any hidden fees or rate adjustment clauses with both lenders.
Ask the experts:
How do changes in the Federal Reserve’s interest rates impact HELOC rates, and what should homeowners expect if rates rise or fall?
Credit & Mortgage Expert
The current Federal Fund rate has a direct impact on the rate you get or have on a HELOC. So if rates increase or decrease, your HELOC rate will follow. Recently the Federal Reserve decreased the Federal Fund rate by 0.5%, and about a week or two later, the rate on my HELOC decreased by 0.5%.
HELOC Payment Calculator
HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home's equity.
Use our Iowa HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms.
Our calculator also provides a full amortization schedule, showing how much goes toward interest and principal over time. Understanding these details can help you manage your HELOC more effectively and plan for future payments.
Iowa HELOC Payoff Calculator
This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.
Credit Line Information
Draw Period Payment
$0
Repayment Period Payment
$0
- Graph view
- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
YEAR
Ending balance
Principal paid
Interest paid
How to Get the Best HELOC Rates in Iowa
Finding the best HELOC rates in Iowa can save you thousands over the loan's life. For example, a lower rate can reduce your monthly payments and total interest. Consider these five strategies to secure the most competitive rate:
Maintain a strong credit score
The average credit score in Iowa is 730. While good, aiming for higher can secure better rates from lenders.
Compare offers from multiple lenders
Shopping around helps find competitive rates and leverage offers for better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show financial stability. Paying off credit card debt can help.
Increase your home equity
More equity reduces lender risk, lowering rates. Paying down your mortgage or home improvements can help.
Review closing costs and rate caps
Closing costs affect loan expenses. Understanding rate caps helps manage HELOC adjustments.
HELOC Loan Rates vs. Home Equity Loan Rates in Iowa
HELOC interest rates in Iowa average 8.3%, while home equity loan rates are lower at 7.7%. This difference arises from their rate structures, with HELOCs having variable rates and home equity loans offering fixed rates.
- HELOCs are revolving credit lines with variable rates that can increase in rising interest rate environments, potentially impacting homeowners' finances over time.
- Home equity loans provide a lump sum at a fixed rate, ideal for those seeking stable payments and predictability.
When deciding between these options, consider your financial goals and tolerance for rate fluctuations. If you prefer stability, a home equity loan may be more suitable, while a HELOC offers flexibility if you're comfortable with potential rate changes.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
Cash-out refinance is a HELOC alternative that replaces your existing primary mortgage with a larger loan to access cash. Unlike HELOCs or home equity loans, it creates a new primary mortgage.
If your loan is backed by the Federal Housing Administration (FHA), an FHA cash-out refinance lets you refinance up to 80% of your home's value, offering cash based on the new loan amount.
FAQ: Best HELOC Rates in Iowa
What are the current HELOC rates in Iowa and how do they compare to national rates?
The average Iowa's HELOC rates are 8.3%, slightly below the national average of 8.4%.
What fees are commonly associated with HELOCs in Iowa?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in Iowa compare to home equity loan rates?
HELOC rates in Iowa average 8.3%, while home equity loan rates are lower at 7.7%, particularly beneficial for those with bad credit.
How do HELOC Rates in Iowa vary between banks and credit unions?
Commercial banks in Iowa offer HELOC rates averaging 8.5%, while credit unions offer lower rates at 7.9%.
What's the best HELOC rate in Des Moines? How does it compare to the current HELOC rate in Iowa?
The average HELOC rate in Iowa is 8.3%, while Des Moines's rates are slightly lower, averaging 8.2%.
MoneyGeek examined 108 different banks and credit unions in Iowa using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity line of credit rates.
This data is accurate as of November 15, 2024.
108Lenders Analyzed
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.