Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
Pro
Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in Iowa
Iowa offers exceptional affordability, with an average home price of just $195,000 — among the lowest of any state in the country. Des Moines, the state capital, has emerged as a surprisingly dynamic city with a growing insurance, financial services, and tech sector, and its housing market reflects strong local demand at prices that would be unimaginable in coastal cities. The metro area includes suburban communities like Ankeny, Waukee, and West Des Moines that consistently rank among the best places to raise a family in the Midwest.
Iowa's property tax rate of 1.43% is above average, which does add to monthly carrying costs compared to states with similar home prices but lower tax rates. However, in absolute dollar terms — given Iowa's low home values — the annual property tax bill remains modest. On the state's average $195,000 home, annual property taxes run approximately $2,789.
College towns like Iowa City and Ames offer vibrant communities with strong rental markets and consistent demand. Cedar Rapids, Davenport, and Sioux City provide additional affordable markets across the state. Iowa's straightforward homebuying process and the Iowa Finance Authority's assistance programs make the path to ownership highly accessible for first-time buyers.
Key Housing Facts for Iowa
Average home price: $195,000
Average effective property tax rate: 1.43%
Average homeowners insurance: $1,100/year
Most dynamic markets: Des Moines metro, Iowa City, Ames
Most affordable markets: Waterloo, Cedar Falls, Davenport, Dubuque
Frequently Asked Questions
Iowa's average effective property tax rate is approximately 1.43%, which is above the national average. On a $195,000 home, you'd pay roughly $2,789 per year in property taxes. Iowa's property taxes are levied by local governments and vary by county, with urban counties like Polk (Des Moines) generally having higher rates than rural areas.
Iowa Finance Authority (IFA) offers the FirstHome program with competitive interest rates and the FirstHome Plus program with down payment assistance of up to $2,500. The IFA also administers the Homes for Iowans program for buyers who don't meet first-time buyer criteria. Military Homeownership Assistance provides up to $5,000 for qualifying veterans.
With Iowa's average home price of $195,000, a 20% conventional down payment is $39,000. FHA loans require 3.5% ($6,825). Iowa's affordable price points make it one of the more accessible states for first-time buyers even without assistance programs, as smaller down payments result in relatively modest monthly payments.
Closing costs in Iowa typically range from 2–3% of the loan amount. On a $195,000 home, expect approximately $3,900–$5,850 in closing costs. Iowa does not have a state transfer tax or mortgage recording tax, which helps keep closing costs manageable. A deed transfer fee of $0.80 per $500 of value applies.