Current Mortgage Refinance Rates in Iowa (December 2024)

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Updated: January 13, 2025

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The current mortgage refinance rates in Iowa for a 15-year fixed loan stand at 6%, while the 30-year fixed loan rate is 6.69%. In comparison, the national average refinance rates are 5.38% for a 15-year fixed loan and 6.45% for a 30-year fixed loan. These figures provide a snapshot of where Iowa's mortgage environment stands in relation to the broader national landscape.

We aim to equip you with comprehensive insights into the refinance mortgage rates today in Iowa, including trends, credit score impacts and loan types. By exploring these sections, you can better understand when and how to refinance a mortgage in Iowa, ensuring you're making informed decisions that align with your financial goals.

MoneyGeek used Zillow data for the rates on this page. Because mortgage rates shift daily, we use a snapshot to analyze rate information for Florida. 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 noted otherwise, featured rates are annual percentage rates (APRs).

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This data was last updated in December 2024.

Current Mortgage Refinance Rates in Iowa

The current 30-year refinance rate in Iowa is 6.69%. According to Experian, the average mortgage debt in Iowa is $153,682 as of September 2023. Refinancing your mortgage can help manage this debt by potentially lowering your monthly payments and reducing the total interest paid over the life of the loan.

If your current mortgage rate is higher than the current refinance rates in Iowa, refinancing could be a smart choice. Imagine reducing your interest rate and freeing up extra cash each month. Below are the current refinance rates in Iowa to explore your options.

15-Year Fixed5.88%6.00%
30-Year Fixed6.62%6.69%

Mortgage Refinance Rate Trends in Iowa

In the latest month, 15-year refinance rates in Iowa showed a downward trend. This is different from the previous month, where rates rose. Similarly, 30-year refinance rates in Iowa decreased in the latest month, but had increased the previous month.

Iowa Mortgage Refinance Rate Trends 2024
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WHY DO INTEREST RATES GO UP?

Interest rates rise due to factors like the US Federal Reserve's monetary policy and economic conditions such as inflation. These elements also influence refinance rate trends in Iowa, affecting homeowners' decisions. Understanding these factors helps in making informed financial choices.

How to Refinance a Mortgage in Iowa

Refinancing your mortgage in Iowa can lead to lower interest rates and reduced monthly payments. Understanding the steps involved is key to making informed decisions. Let's explore how you can effectively navigate this process, ensuring you reap the financial benefits available.

  1. 1

    Check Your Credit Score

    Credit scores influence the rates you qualify for. If your score is below 730, consider paying down debts or correcting errors on your report. Iowa's average credit score is 730, which affects loan terms and potential savings.

  2. 2

    Determine When to Refinance a Mortgage

    Compare your current mortgage terms with Iowa's rates: 6.69% for 30-year and 6% for 15-year loans. If these are lower, it might be time to refinance. Consider your home tenure before deciding, as it impacts potential savings.

  3. 3

    Gather Necessary Documents

    Prepare documents like tax returns, pay stubs, and proof of insurance for your original mortgage. This ensures a smoother process and helps lenders assess your application efficiently.

  4. 4

    Shop Around for Lenders

    Explore different lenders to find the best deal. Look for competitive rates, favorable terms, and excellent customer service. Comparing options can lead to significant savings over the life of your loan.

  5. 5

    Understand the Costs Involved

    Be aware of closing costs and fees like appraisal and origination charges. In Iowa, the average closing costs are $2,758, according to the National Association of Realtors.

  6. 6

    Apply for the Loan

    Submit your application with all required documents. To expedite the process, ensure all paperwork is accurate and complete. This diligence can help avoid delays and facilitate a seamless refinancing experience.

  7. 7

    Lock in Your Interest Rate

    Secure your rate through a mortgage rate lock. This prevents rate fluctuations during processing. Consider locking when rates are favorable to ensure predictable monthly payments.

  8. 8

    Close on Your New Loan

    Finalize your refinance by signing closing documents. Review terms carefully to avoid surprises. Scheduling your closing at month-end can reduce prepaid interest, potentially saving you money.

  9. 9

    Start Making Payments on Your New Loan

    Begin payments promptly to maintain your credit standing. Setting up automatic payments can help you avoid missed due dates and ensure timely payments, keeping your financial health intact.

  10. 10

    Reevaluate When to Refinance a Mortgage

    Periodically review market conditions and your loan terms. If rates drop significantly, refinancing again might be beneficial. Stay informed about market trends to make timely, cost-effective financial decisions.

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HOW SOON CAN YOU REFINANCE A MORTGAGE?

In Iowa, how soon you can refinance a mortgage depends on the type of loan you have. For conventional loans, refinancing is possible immediately, though a cash-out refinance typically requires a six-month seasoning period. USDA loans, on the other hand, generally mandate a 12-month waiting period before refinancing.

The average refinance rate in Iowa for October is 6.41%, which is lower than earlier months, making it a prime example of when to refinance. However, it's important to remember that refinancing comes with additional closing costs that can take years to recover. While you could refinance a mortgage within a year, it's usually not worth it unless there's a drastic reduction in interest rates.

When to Refinance a Mortgage

Refinancing your mortgage in Iowa can reduce monthly payments by lowering interest rates. However, closing costs might offset these savings. Understanding when to refinance a mortgage in Iowa ensures you capitalize on financial benefits. Let's dive into scenarios where refinancing makes sense.

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    Lower Interest Rates

    Refinancing when interest rates are lower can reduce monthly payments and total interest paid. To find the best rates, consult with local lenders and credit unions, who often offer competitive rates. This strategy can lead to significant savings over the life of the loan.

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    Increased Home Value

    Refinancing when your home's value rises can increase home equity, allowing for better loan terms. Enhancing curb appeal or upgrading interiors can boost value. With Iowa's average home value at $223,348, this can be a smart move.

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    Improved Credit Score

    A higher credit score can qualify you for better refinancing terms. Paying bills on time and reducing debt can improve your score. This can lower your interest rate, reducing monthly payments and overall loan costs.

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    Shorter Loan Term

    Refinancing to a shorter loan term can save on interest and pay off your mortgage faster. Benefits include building equity quicker and reducing total interest paid. This strategy can lead to financial freedom sooner, making it an attractive option for many homeowners.

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    Switch Loan Type

    Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage can provide financial stability. A fixed rate protects against market fluctuations, ensuring consistent payments. This can simplify budgeting and offer peace of mind over time.

Mortgage Refinancing in Iowa: Is It Right for You?

Use MoneyGeek's free mortgage refinance calculator to help determine whether refinancing is beneficial for your situation.

Mortgage Refinance Calculator

Make sure refinancing your existing home loan will save you money.

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Today's Mortgage Refinance Rates in Iowa by Credit Score

Your credit score affects the rates you qualify for in Iowa. For example, the current average refinance rates in Iowa for a 30-year fixed-rate loan with a loan-to-value ratio of 80% or lower equate to 6.96% for credit scores between 680 and 740, compared to 6.69% for scores above 740. Explore the table below for more details.

Data filtered by:Results filtered by:
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Loan Type:15-year Fixed
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Credit Score Range:680 - 740
Select
Loan-to-Value Ratio:80% - 95%
6.18%6.70%

Mortgage Refinance Rates in Iowa by Loan Type

Loan type is another factor that can affect the rates you qualify for in Iowa. For example, the current average refinance rates in Iowa for a 30-year fixed loan are 6.96%. The table below shows average APRs for different loan types in Iowa.

Data filtered by:Results filtered by:
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Loan Type:10-Year Fixed
5.08%5.27%

FAQ: Today's Mortgage Refinance Rates in Iowa

Homeowners in Iowa often find themselves pondering the implications of today's refinance rates. We've gathered and addressed the most common inquiries to provide clarity on this topic.

Should you refinance your mortgage?

How to get the best mortgage refinance rate?

What are the pros and cons of a mortgage refinance?

How much does it cost to refinance a mortgage?

What is the mortgage refinance rate in Des Moines?

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

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.

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