Iowa Mortgage Rates
Compare Iowa mortgage rates and choose the best option for your needs.
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Mortgage in Iowa: Top Lenders in 2024
Willing to buy a home in Iowa State? The most convenient method is through a mortgage loan, which is effective regardless of the type of property you're seeking – be it a residential estate or an apartment. However, it's crucial to note that the terms of home loans offered by different mortgage lenders can vary greatly (use our mortgage calculator to estimate your future expenses). In this guide, we'll review some of the top-rated lenders and determine which ones are worth considering.
IA Mortgage Lenders Comparison
All the lenders we've reviewed are reputable companies with a strong track record and competitive rates. To provide you with comprehensive information, we will compare them based on several key criteria, including the APR (Annual Percentage Rate), minimum down payment requirements, minimum eligibility requirements, and more. This comparison will help you make an informed decision and choose the lender that best aligns with your needs and financial circumstances.
Morty, Inc. Mortgage
Not a lender by itself, but a mortgage broker, Morty, Inc. was established in 2016. While its headquarters is located in New York City, it provides coverage across the majority of the nation, with the exception of Hawaii, Massachusetts, Missouri, and Nevada.
Morty offers a range of mortgage options, including fixed-rate and variable-rate conventional and jumbo mortgages, as well as FHA-insured loans. However, it only facilitates refinancing for loans that were originally issued through Morty.
For a 30-year fixed-rate mortgage, the APR is 6.667%. The rates are slightly lower for 20-year and 10-year loans, at 6.425% and 5.452% respectively. To qualify for a mortgage through Morty, applicants must have a minimum credit score of 600 and a maximum debt-to-income (DTI) ratio of 45%. The minimum down payment requirement varies depending on the size of the property.
| Pros: | Cons: |
|---|---|
| Wide coverage. Morty has close-to-nationwide coverage, making it accessible to residents of Iowa. | Limited coverage. Morty is not available in all states, including Hawaii, Massachusetts, Missouri, and Nevada. This limitation may restrict some borrowers in Iowa who reside in those states. |
| Mortgage options. Morty offers a range of mortgage options, including conventional, jumbo, and FHA-insured loans, providing borrowers with flexibility. | Credit score requirement. Morty requires a minimum credit score of 600, which may be a higher threshold for borrowers with lower credit scores. |
| Refinancing convenience. Morty facilitates refinancing for loans originally issued through their platform, making it convenient for homeowners who wish to refinance their mortgages. | Down payment variation. The minimum down payment requirement varies depending on the size of the property, which could potentially impact borrowers' financial planning and affordability. |
| Competitive rates. Morty provides reasonable rates for different loan terms, allowing borrowers to find an option that suits their financial needs. |
AmeriSave
AmeriSave has established itself as a nationwide lender since its foundation in 2002. While the lender originates from Georgia, it extends its offerings to various states, including enticing offers for Georgia residents. AmeriSave's credibility is evident through its excellent ratings from BBB (A+) and Trustpilot (4.3/5).
The advertised rate of 4.899% is based on meeting specific criteria, including a FICO score of 740 and a 20% down payment. However, it's important to note that your actual rate is likely to be higher than the advertised rate. For conventional loans, a credit score of 620 is typically required, while government-insured plans are available starting from a credit score of 600.
Prospective borrowers should carefully consider their individual circumstances, including credit scores and down payment capabilities, to determine if AmeriSave aligns with their mortgage needs in terms of rates, requirements, and the lender's established reputation.
| Pros: | Cons: |
|---|---|
| Nationwide presence. AmeriSave is a nationwide lender with a strong presence in multiple states, including Iowa. This provides borrowers in Iowa with access to a well-established and reputable mortgage lender. | Advertised rates vs. actual rates. While AmeriSave advertises competitive rates, it's important to note that the actual rate offered to borrowers may be higher based on individual circumstances such as credit score, down payment amount, and loan terms. |
| Positive ratings. AmeriSave has received excellent ratings from reputable sources such as BBB (A+) and Trustpilot (4.3/5). This indicates a high level of customer satisfaction and reliability. | Credit score requirements. AmeriSave typically requires a credit score of 620 for conventional loans and a minimum score of 600 for government-insured plans. This may be a potential drawback for borrowers with lower credit scores. |
| Range of loan options. AmeriSave offers a variety of loan options, including conventional and government-insured plans. This allows borrowers to choose a mortgage that best suits their needs and financial situation. | Down payment requirements. AmeriSave's advertised rate of 4.899% requires a 20% down payment. While this may be feasible for some borrowers, it could be a challenge for those who are unable to make a larger down payment. |
Rocket Mortgage
Since its establishment in 1985, Rocket Mortgage has emerged as the leading mortgage lender in the United States, earning a reputation for success. Formerly known as Quicken Loans, it was among the pioneers in offering online mortgage services nationwide. While its rates tend to be higher than the average, Rocket Mortgage provides a range of options including adjustable-rate mortgages, refinancing, and FHA- and VA-backed plans.
To qualify for a Rocket Mortgage loan, borrowers must meet certain minimum requirements, with a credit score of at least 620 (or 580 for FHA loans) being a key criterion.
| Pros: | Cons: |
|---|---|
| Reputable and Established Lender. Rocket Mortgage, formerly known as Quicken Loans, has a long-standing reputation and is considered one of the most successful mortgage lenders in the United States. | Higher Rates. Rocket Mortgage's rates are often higher than the average rates offered by other lenders. Borrowers should carefully consider the impact of these rates on their overall mortgage costs. |
| Nationwide Coverage. Rocket Mortgage offers its services online across the entire country, including Iowa, providing convenient access to their mortgage products. | Minimum Requirements. Rocket Mortgage has certain minimum requirements that borrowers must meet, including a credit score of at least 620 (or 580 for FHA loans). Some borrowers with lower credit scores may not qualify for their loan programs. |
| Wide Range of Mortgage Options. Rocket Mortgage provides various mortgage options, including fixed-rate and adjustable-rate mortgages, FHA- and VA-backed loans, and refinancing options. This allows borrowers to choose a mortgage that best suits their needs. | |
| User-Friendly Online Platform. Rocket Mortgage offers a user-friendly online platform, allowing borrowers to complete the mortgage application process conveniently from the comfort of their own homes. |
Average Mortgage Rate in Iowa from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Iowa.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Iowa
| Criteria | Amount, $ |
|---|---|
| The median home value in Iowa | $183,823 |
| The income required to buy the median priced home in Iowa | $30,119 |
| The monthly mortgage payment required to buy the median priced home in Iowa | $697 |
| The median household income for Iowa | $66,991 |
Things to Consider When Choosing a Mortgage Lender
Obtaining a mortgage loan is a significant commitment that spans a period of 15 to 30 years. Therefore, it is crucial to carefully evaluate your options before entering into an agreement with any lender. There are several key factors to consider when selecting a lending entity.
Type of Lender
In general, there are two main choices when it comes to mortgage lenders: traditional banks and online mortgage lenders. Banks often provide competitive interest rates, but they typically have rigorous credit check processes. The approval process can be lengthy, and the eligibility criteria can be challenging to meet. On the other hand, online lenders operate more swiftly and have less stringent requirements for borrowers.
APR and Fees
Like any other loan, a mortgage comes with various costs in addition to the interest rate. These costs encompass additional fees like the origination fee, mortgage insurance fee, closing costs, and more. Currently, in Iowa, the average mortgage rate for a fixed-rate 30-year loan stands at 6.58%. It's essential to consider these costs and rates when evaluating your mortgage options.
Terms and Conditions
In this context, it is crucial to take into account the minimum down payment requirement, which can range from 0% to 20% depending on the loan type and your current circumstances (such as military status, employment status, self-employment, etc.). Another significant factor to consider is the loan term, which refers to the total length of the loan. Common options include 15-year and 30-year terms. These considerations play a key role in determining the specific terms and conditions of your mortgage.
What Mortgage Lender is the Number One in Iowa?
There is a wide range of trustworthy mortgage lenders available in Iowa, making it challenging to provide a definitive answer. The choice ultimately depends on various factors specific to your situation. One notable industry leader is Rocket Mortgage, which achieved a loan volume of $11.5 billion in 2021. To make an informed decision, it is advisable to refer to our list of recommended lenders and carefully evaluate their offerings.
First-Time Homebuyer Programs in Iowa
Pre-Approval: What Does It Mean?
Preliminary approval serves as a confirmation of a prospective homebuyer's credibility and signals to home sellers that lenders are prepared to approve a mortgage loan for the buyer. To obtain a pre-approval, individuals must provide supporting documentation that demonstrates their ability to repay the loan. This typically includes earning statements, account statements, a W2 form, or alternative proof of income covering a minimum of two years. Additionally, filling out the Uniform Residential Loan Application form is necessary to initiate the pre-approval process. By obtaining preliminary approval, homebuyers can enhance their credibility and gain an advantage when entering into negotiations with sellers.