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Iowa Mortgage Calculator

The median home price in Iowa is $220,000. With a 20% down payment at the state's average 30-year fixed rate of 7.18%, your estimated all-in monthly payment (principal, interest, taxes, and insurance) is approximately $1,580. Iowa's property tax rate of 1.57% annually is above the U.S. national average of 1.07%.

A buyer earning Iowa's median household income of $66,000 would dedicate roughly 29% of gross monthly income to housing — moderately stretched by the standard 28% guideline.

Median Home Price

$220,000

Avg 30-yr Rate

7.18%

Property Tax Rate

1.57%/yr

Est. Monthly PITI

$1,580

Mortgage Calculator

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Total Monthly Payment

$1,580.12

Principal & Interest$1,192.29
Property Tax$287.83
Home Insurance$100.00
Total$1,580.12

Loan Amount

$176,000

Total Paid

$429,223

Total Interest

$253,223

How to Get a Mortgage in Iowa

  1. 1 Check your credit score. In Iowa, most conventional lenders require 620+; FHA allows 580+ with 3.5% down.
  2. 2 Save for your down payment. On a $220,000 Iowa home, 20% down is $44,000 — avoiding PMI and reducing your monthly payment.
  3. 3 Get pre-approved from 2–3 lenders. Rates in Iowa average 7.18%, but shopping lenders often saves 0.25–0.5%.
  4. 4 Account for closing costs — typically 2–5% of the loan amount, or $5,280–$8,800 on a median Iowa purchase.
  5. 5 Budget for ongoing costs: Iowa property taxes average 1.57%/yr ($3,454/yr on the median home), plus homeowner's insurance averaging $1.200/yr.

Monthly Cost Breakdown — Median Iowa Home

Principal & Interest (7.18%, 30yr, 20% down) $1,192
Property Tax (1.57%/yr) $288
Homeowner's Insurance $100
Total PITI $1,580

Excludes HOA fees, PMI (not required with 20% down), and utilities.

Iowa Mortgage FAQs

What is the average home price in Iowa?

The median home price in Iowa is $220,000 (2024 estimate). With a typical 20% down payment of $44,000, a buyer would finance $176,000 at a 30-year fixed rate.

What are property taxes like in Iowa?

Iowa has an average effective property tax rate of 1.57% of assessed home value. On a $220,000 home, that's approximately $3,454 per year ($288/month) — above the national average of 1.07%.

How much income do I need to buy a home in Iowa?

To keep housing costs at or below the recommended 28% of gross monthly income on a median-priced Iowa home, you'd need to earn roughly $67,719 per year. The state's median household income is $66,000, meaning the typical household allocates about 29% of gross income to housing — moderately stretched.

What is the average mortgage rate in Iowa?

The average 30-year fixed mortgage rate in Iowa is approximately 7.18% (2024 average). Rates vary by lender, credit score, loan-to-value ratio, and loan type. Borrowers with credit scores above 740 typically qualify for the best available rates.

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