Summary List Placement
Table of Contents: Masthead StickyBuying a home in Iowa
According to Zillow, the typical home value in Iowa is much lower than the typical value of $259,906 across the US. The typical home value in Iowa is $157,584, and Zillow expects the value to increase to $167,000 by September 2021.
First-time homebuyer programs in Iowa
The Iowa Finance Authority has several financial assistance programs for first-time homebuyers who borrow from participating lenders:
FirstHome grant: Depending on your income, you may qualify for a $2,500 grant to put toward a down payment or closing costs. You don’t have to repay the grant.
FirstHome loan: If you qualify, you can borrow up to 5% of your home purchase price or $5,000, whichever is less. You’ll repay the IFA when you sell the home, refinance your mortgage, or completely pay off your mortgage.
Homes for Iowans grant: If you don’t qualify for the FirstHome program, you might be eligible for Homes for Iowans. The IFA will give you $2,500, and you don’t have to pay it back.
Homes for Iowans loan: Borrow up to 5% of your mortgage amount or $5,000 — whichever amount is smaller — for closing costs or a down payment. Repay the loan when you pay off your mortgage, sell, or refinance.
Military Homeownership Assistance Program: If you’re an active-service military member or a veteran, you may be eligible for a $5,000 grant. You don’t have to pay back the grant, and you can combine this assistance with FirstHome or Homes for Iowans assistance.
Historic mortgage rates for Iowa
By looking at the average mortgage rates in Iowa since 2010, you can see trends for 30-year fixed mortgages, 15-year fixed mortgages, and 5/1 adjustable mortgages:
Seeing how today’s rates compare to historic Iowa mortgage rates may help you decide whether you’d be getting a good deal by getting a mortgage or refinancing now.
How 30-year fixed mortgage rates work
You’ll pay a higher interest rate on a 30-year fixed mortgage than on a shorter-term fixed-rate mortgage. The 30-year fixed rates used to be higher than adjustable rates, but recently 30-year terms have been the better deal.
Monthly payments are relatively low for a 30-year term, because you’re spreading payments out over a longer period of time than you would with a shorter term.
You’ll ultimately pay more in interest with a 30-year term than you would for a 15-year mortgage, because a) the rate is higher, and b) you’ll be paying interest for longer.
How 15-year fixed mortgage rates work
A 15-year fixed-rate mortgage is more affordable than a 30-year term in the long run. The 15-year rates are lower, and you’ll pay off the loan in half the amount of time.
However, your monthly payments will be higher on a 15-year term than a 30-year term. You’re paying off the same loan principal in half the time, so you’ll pay more every month.
How ARMs work
With an adjustable-rate loan, your rate stays the same for the first few …read more
Source:: Business Insider