Welcome to the Iowa Mortgage Calculator page, where we provide a powerful tool to navigate the world of mortgages in the Hawkeye State. Whether you're a first-time homebuyer or considering refinancing, our Iowa Mortgage Calculator is designed to offer valuable assistance tailored specifically to your state.
Using this calculator, you can understand your financial commitments, estimate your monthly mortgage payments, explore different interest rates, and factor in important elements such as property taxes, private mortgage insurance, and closing costs.
This analytical tool empowers you to make informed decisions about your Iowa mortgage, ensuring you have the knowledge and confidence to achieve your homeownership goals. Count on New American Funding to guide you on your path to success in the Iowa real estate market. Also, see FHA Loan in Iowa for details and requirements for a home in the state. If you're looking to move to Iowa, see First-time Homebuyer Guide for Iowa.
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As of July 1, 2022, the Census Bureau estimated Iowa's population to be 3,200,517, with an annual growth rate of about 0.335%. Iowa’s population growth has been relatively slow but steady. The state also has a higher median age than the national average, indicating that a significant portion of the population is older. Most of the population resides in urban areas, with the largest cities being Des Moines, Cedar Rapids, and Davenport. Approximately 36% of Iowa’s population lives in rural areas, which is higher than the national average of 20% living in rural areas.
It is important to note that the conditions of the housing market vary significantly in different locations throughout the state. The largest urban areas in the state are Des Moines, Cedar Rapids, Davenport, Sioux City, and Iowa City. Each of these cities, as well as the more rural areas of the state, has its own unique housing market conditions.
For instance, as of May 2023, the housing market in Des Moines, with its Midwest landscape of rolling hills and proximity to the state’s major public universities, has a median listed price of $197,940, while in Iowa City, nestled along the Iowa river and offering a blend of rural living and rural charm, the median listed price is $285,000.
The median number of days homes stayed on the market, known as DOM (Days on Market), was 21 days as of May 2023. This is less than the national average of 54 and 15 days less than the previous year. How long a home stays on the market indicates the competitive level of the housing market. When homes stay on the market longer, it gives buyers more time to negotiate for the home they want as well as more control over the process.
Mortgage rates change daily and are affected by numerous factors. These can include the current state of the economy, the geographic location of your property, and changes in government laws and regulations. Keeping track of the current rates in your area can help you make more informed decisions regarding your mortgage journey.
Iowa ranks twenty-eight compared to the fifty states regarding the average amount of property taxes collected. The average effective property tax rate in Iowa is 1.29%. However, property taxes vary by county, so your exact tax will depend on where in the state your property is located. Iowa also offers various exemptions that borrowers may be able to qualify for, such as the Volunteer Firefighter and Emergency Medical Services (EMS) Personnel Tax Credit for volunteer firefighters, volunteer EMS personnel, and volunteer reserve peace officers. Potential benefits are also available to people with disabilities, veterans, and senior citizens.
The average effective property tax rate in Iowa represents the percentage of the appraised value of a home that homeowners are required to pay in property taxes. This rate can vary depending on the local tax rates in different areas of the state. Each county in Iowa conducts an annual assessment to determine the current market value of properties.
Our Iowa mortgage calculator indicates that borrowers who make a down payment of less than 20% on a Conventional loan may be required to obtain private mortgage insurance (PMI). PMI protects the lender in case the borrower defaults on the loan. The cost of PMI premiums can vary significantly, ranging from 0.5% to nearly 6% of the loan principal. This variation depends on factors such as the amount of the down payment, the type of loan, the loan term, and the borrower's credit score.
Borrowers need to consider the potential impact of PMI on their overall mortgage expenses. While PMI can increase monthly payments, it may be canceled under specific conditions, such as reaching a certain loan-to-value ratio or making additional principal payments. To better understand their specific PMI requirements and options, borrowers are encouraged to consult with their Loan Officer. By doing so, they can make informed decisions and develop strategies to manage PMI effectively, ensuring a smooth and successful homeownership journey.
When purchasing a home in Iowa, it is essential to consider the specific closing costs associated with the state. Closing costs are extra fees and expenses that are required when purchasing a home. These are in addition to the price of the property itself and usually include things like a property appraisal, lender fees, insurance, and the cost of a credit report.
Iowa’s closing costs average between 2%-5% of the home’s overall purchase price. Iowa also splits the responsibility of closing costs between the buyer and the seller, so be sure to check with your Loan Officer to find out what exact payments will be expected of you.
Considering the closing costs and associated fees can help you make informed financial decisions and effectively plan for your dream of homeownership in the Hawkeye State.
While homeowners insurance is not required by law in Iowa, mortgage lenders usually require borrowers to have it in order to qualify for a home loan. This is because the home is used as collateral against the loan, putting lenders at risk if something happens to the property. Homeowners insurance in Iowa averages $1,318 per year, which is 8% lower than the national average.
Insurance rates vary according to factors like geographic location and the buyer’s credit score, so what a homebuyer pays in Des Moines will likely be different than what they pay in Ames. Likewise, people with different credit scores are also likely to pay different amounts. A higher credit score can mean lower insurance rates, while a lower score can mean a buyer will pay more for insurance.
Homeowners can expect to pay approximately $300-$500 for a home inspection in Iowa, depending on the specific services required. Additional fees may apply for certain services. Though it is not always required by your lender, a home inspection is recommended.
It is an important tool to help buyers understand the quality of the home they are purchasing and can help you plan or negotiate any needed repairs. Getting a home inspection also allows borrowers to gauge the accuracy of the seller’s asking price, giving them a platform to renegotiate if there are any issues that might be costly to fix.
While the cost of a radon test or mitigation system is not typically included in the standard closing costs, it is an important consideration for buyers concerned about radon gas levels in their prospective homes. Buyers in Iowa may want to include radon testing and mitigation as part of their home inspection process, considering the potential costs of these additional services. By addressing radon concerns early on, buyers can make informed decisions and ensure the safety and well-being of their future homes.
Home warranties are service contracts that cover repairs or replacements of major home systems and appliances. While home warranties are not typically included as part of standard closing costs in Iowa, they are an option buyers can consider during home buying. The cost of a home warranty can vary depending on factors such as the coverage level and duration.
Including a home warranty in the closing costs would require negotiation and agreement between the buyer and the seller. It's important for buyers in Iowa to carefully review the terms and coverage of the home warranty before making a decision. Obtaining a home warranty could be beneficial as it can provide financial protection against unexpected repairs or replacements of covered items in the home.
Lender’s title insurance is a common requirement by lenders for homebuyers. Some homebuyers also opt to pay for owner’s title insurance as well since this will protect them personally against issues arising from title conflicts. Owner’s title insurance protects the homebuyer in case of title issues such as conflicting ownership claims of the property, outstanding lawsuits regarding the property, and fraud.
Lender’s title insurance protects the lender in a similar way. If the seller does not have the legal right to transfer the title to the property, the lender will be protected against potential financial losses. The title insurance premiums for both types will depend on factors like your geographic location and the price of the property itself.
Calculating your mortgage payments may seem complicated at first. There are a lot of factors to consider when you start trying to figure out your mortgage. Each person has their own unique circumstances and financial goals to think about as you plan for your future.
Our mortgage calculator can simplify the process and help you take some of the guesswork out of planning for your dream home. Just input the necessary information into our calculator, and you’ll be able to see various options. This information includes the home price, down payment amount, the ZIP code of the property, your credit score, and mortgage rate. There are also advanced options where you can compare various loan types and terms and factor in extra costs like home insurance.
Iowa's labor market is a testament to the resilience and adaptability of its workforce. In 2021, the market experienced a significant shift, with many Iowans seeking new opportunities that offered higher pay, more flexibility, or a career change. Despite these changes, Iowa's economy demonstrated strength, with job growth continuing. Payrolls increased by 4,500 in October, a remarkable achievement in the face of looming recession fears. The state's GDP growth for the first quarter of 2023 has been robust, in line with the national trend of increased real GDP across all 50 states.
The state's unemployment rate as of May 2023 stands at a low 2.7%, indicating a healthy job market. Iowa has also made significant strides in job recovery post-pandemic. By June 2021, nonfarm employment had recovered 110,200 jobs, bouncing back from April 2020, which saw a loss of 178,400 jobs. The state's largest companies and employers, such as Hy-Vee, United Coop Hampton, and Eurofins, play a significant role in this recovery, providing numerous job opportunities for Iowans. The Iowa Economic Development Authority has also been proactive, approving awards that will assist in creating 131 jobs and result in $487 million in new capital. The Iowa Workforce Development is also working on a one-stop shop to provide individualized assistance for employers facing workforce challenges. All these factors contribute to a positive outlook for Iowa's job market and economy.
State economies are affected by the same patterns as national ones. These can include changes in laws, international trade relations, and shifts in government. However, with its consistent growth in both employment and GDP, Iowa is poised to maintain its economic vitality within the U.S. economy.
