Updated: January 16, 2025
Advertising & Editorial Disclosure
In Iowa, Pocahontas County has the lowest median monthly mortgage payment at $560, while Dallas County has the highest at $2,100. This difference can impact your ability to save and invest.
Use MoneyGeek's mortgage calculator in Iowa to estimate your monthly payment, assess suitable loan terms for your budget and understand the total interest over the life of the loan. Input your purchase details into the calculator to see your financial commitment.
Simply estimate your Iowa loan payments, taxes and PMI.
Updated: Sep 4, 2024
Fact Checked
Optional: add taxes, insurance, HOA Fees
$0
+
+
+
+
=
0
Get personalized mortgage rates from Iowa.
Why You Can Trust MoneyGeek
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
In Iowa, Pocahontas County has the lowest median monthly mortgage payment at $560, while Dallas County has the highest at $2,100.
A mortgage calculator can help you find a monthly payment that fits your budget, adjust loan terms or down payments and estimate your total interest over the loan's life.
The average APR in Iowa is 6.4% for a 30-year mortgage and 6.1% for a 15-year mortgage.
MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot to analyze rate information for Iowa. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless otherwise stated, all rates are annual percentage rates (APRs).
See the sources cited for more details about data related to median mortgage payments, home prices, down payments and local tax rates.
Interest rate data was last updated in October 2024.
MoneyGeek's mortgage calculator in Iowa can calculate your monthly payments, determine your mortgage's affordability and show your amortization schedule.
Understanding your monthly mortgage payment involves several factors, including the home's sale price and down payment. Here's a breakdown of each factor that contributes to your potential payments.
The home price affects your monthly mortgage payment in Iowa. A lower home price in Wayne County, at a median of $107,810, means lower monthly payments than in Dallas County, where the median is $369,360, according to the National Association of Realtors.
The size of your down payment influences your monthly mortgage payment by reducing the loan amount. Iowa's median down payment is $25,000, according to ATTOM data.
Your APR affects your monthly mortgage payment. A lower APR means lower payments. The current mortgage rates in Iowa change over time and vary by type. The average APR for a 15-year fixed mortgage is 6.1%, and for a 30-year fixed mortgage, it's 6.4%.
Shorter terms, like 15 years, often have higher monthly payments but result in less interest paid over the life of the loan. A 30-year term typically has lower monthly payments but accrues more interest over time.
Using the mortgage calculator in Iowa, the monthly payment for a 30-year fixed-rate mortgage on a $275,000 house after a 20% down payment is $1,434, excluding HOA fees and property taxes.
Choosing a 15-year repayment term raises your monthly mortgage payment to $1,880, increasing short-term costs but saving $177,863 in total interest over the loan's life.
Buying a home is a major expense; mortgage payments often take up a big part of your income. MoneyGeek's affordability calculator helps you see how much you can afford by factoring in your income and debts like car or student loans.
The calculator also provides your debt-to-income ratio, which shows the portion of your income that goes to debt payments. The average annual debt in Iowa is $80,933, or about $6,744 monthly, according to Experian.
Mortgage amortization involves paying off a loan over time through regular payments. Key terms are:
MoneyGeek's mortgage calculator shows your amortization schedule and estimates the total interest paid over the life of your loan in Iowa. It also helps you see when your monthly payments start going more toward the principal than the interest, giving you a clear view of how your payments are split over time.
Homebuyers in Iowa should consider additional mortgage fees when calculating monthly payments, as these can impact their budget. For example, mortgage insurance, HOA fees, property taxes and homeowners insurance can increase monthly payments.
Homeowners insurance protects your property and personal belongings from damage or theft. It also provides liability coverage if someone is injured on your property. The average homeowners insurance in Iowa costs $1,828 per year.
Property tax is a levy on real estate that homeowners must pay to the local government. It funds public services like schools and infrastructure. According to the Tax Foundation, Iowa's effective property tax rate is 1.52%, ranking it 10th in the U.S.
HOA fees are monthly or annual payments to homeowners associations for property management, maintenance and community amenities.
Private mortgage insurance (PMI) protects lenders if a borrower defaults. It applies to conventional mortgages when the down payment is less than 20%. Borrowers must request cancellation once they reach 20% equity, or it will only be automatically removed at 22%.
The average APR for a 30-year fixed loan in Iowa is 6.4%, and for a 15-year fixed loan, it’s 6.1%. Using MoneyGeek's PMI calculator, you can see that on a $275,000 home with a 10% down payment, borrowers with a credit score between 680 and 719 pay $117 monthly in PMI for a 30-year fixed-rate loan. This drops to $115 for a 15-year loan.
MoneyGeek's Iowa mortgage calculator shows your amortization schedule and determines when to stop paying for PMI:
Input the necessary information, such as the home's price, down payment and mortgage rate in Iowa. If you already know some fees you need to cover, such as property tax or HOAs, include these. If not, leave them blank, but know that you'll still have to pay for these. Run the calculator and get your total monthly payment.
You can request that PMI be canceled when you've accumulated at least 20% equity in your home — this will be your target equity. To calculate your target equity, multiply your home's price by 20%.
Your down payment already contributes towards the 20% equity you need to request your PMI's cancellation. Deduct your down payment from your target equity to get the remaining amount.
Go to the Amortization tab of the mortgage calculator. Move the slider until the principal paid exceeds your remaining equity required — that's the year you can stop paying for PMI.
Private Mortgage Insurance Calculator
Calculate your monthly private mortgage insurance (PMI) premium based on your credit score and down payment.
If you put down 8% on a $350,000 home in Iowa with a 6.8% APR for a 30-year fixed-rate loan, your monthly payment will be $2,099. You need 20% equity to cancel PMI, equivalent to $70,000.
Since your down payment was $28,000, you must accumulate an additional $42,000. By making consistent payments, you can reach 20% equity and request PMI cancellation by Year 10, assuming your home's value doesn't change.
Your mortgage is likely your biggest monthly expense. For a $225,000 loan in Iowa at 6.8% interest, you'll pay $1,434 monthly. However, if you can reduce your APR by 0.25%, your new monthly mortgage payment becomes $1,398. That $36 difference in monthly payment adds up — over a 30-year fixed-rate mortgage, you'll save $13,120 in total interest.
This example shows the importance of lowering monthly mortgage payments. Here are some strategies to consider:
Your credit score affects your mortgage payment. In Iowa, if you put in a down payment between 5% and 20% of the home's sale price, the average APR for a 30-year fixed-rate mortgage is 6.62% if your credit score is above 740. However, if your credit score is under 680, the average APR becomes 7.85%. This change in APR makes your monthly mortgage payments go from $1,538 to $1,614.
Putting a bigger down payment may result in lower monthly mortgage payments. For a $225,000 loan in Iowa, putting 8% down makes your APR 6.75%, resulting in a monthly mortgage of $1,769. Increasing your down payment to 25% puts your APR at 6.45% and a monthly mortgage of $1,386.
A longer loan term affects your monthly mortgage payment. A 15-year fixed-rate mortgage in Iowa has an APR of 6.1%. A 20% down payment makes your monthly mortgage payment $1,868. Compare this to $1,376, which you'll have to pay monthly if you change loan terms to 30 years, even if your APR increases to 6.4%.
Iowa offers homeowners assistance programs that may help with mortgage costs. Institutions like the Iowa Finance Authority and the East Central Iowa Council of Governments assist eligible homeowners.
Using a mortgage calculator can raise questions for potential borrowers in Iowa. We've addressed common questions to help you better understand your mortgage options.
Your ability to afford a mortgage in Iowa depends on your debt-to-income ratio (DTI). Typically, lenders prefer a DTI of 36% or lower.
The average mortgage debt in Iowa was $153,682 as of 2023, according to Experian.
The ideal down payment is 20%, but it varies by loan type. Conventional loans usually require 3% to 20%, while FHA loans require 3.5%. VA loans and USDA loans often require no down payment.
In Iowa, private mortgage insurance (PMI) costs about $115 for a 15-year mortgage and $117 for a 30-year mortgage. PMI is typically required if your down payment is less than 20%.
Iowa's effective property tax rate is 1.52%, ranking 10th nationally.
Median home prices in Iowa vary by county. Pocahontas County has the lowest median home price at $98,330, while Dallas County has the highest at $369,360.
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.
