Take a look at your home refinance options, each offering unique features and rates.
Current 30-year fixed mortgage refinance rates are averaging: 7.31%
The current average rate for a 15-year fixed mortgage refinance is: 6.76%
See whether refinancing makes sense for you using our mortgage refinance calculator.The current mortgage rates forecast anticipates a decline in rates, with 2024 predictions pointing to the average 30-year fixed mortgage interest rates dropping to around 6% — or potentially lower — leading up to 2025.
Despite the higher rates since the COVID-19 pandemic, a positive trend started to form in late 2023, with rates dropping from a peak of 7.79% in October to 6.61% by the year-end.
Several factors influencing mortgage rates are beyond your control, but taking the following actions can help you secure the best mortgage rate.
When should I lock in my mortgage rate?Once you’ve completed your mortgage application and received a favorable loan estimate, it’s time to request a mortgage rate lock from the lender. This step ensures that the agreed-upon interest rate remains unchanged until your closing date. This stability and peace of mind allow you to proceed with confidence throughout the mortgage process, especially in fluctuating market conditions.
The Iowa Finance Authority’s (IFA) Homes for Iowans program is designed to simplify the homebuying process by offering flexible down payment options, including the potential for a 3% down payment and reduced mortgage insurance for qualifying borrowers.
Borrowers must:
Have a minimum 640 credit score
Have a maximum 50% DTI ratio
Have a maximum income of $161,560
Purchase home worth no more than $588,000
Occupy the home as a primary residence within 60 days of purchase
Complete a homebuyer education course
Iowa’s Military Homeownership Assistance Program provides service members and veterans a $5,000 grant to help with their down payment and closing costs on eligible homes.
Borrowers must:
Have served at least 90 days of active duty between Aug. 2, 1990, and April 6, 1991, or Sept. 11, 2001, to present
Be a federal status injured service member active during the periods of Aug. 2, 1990, and April 6, 1991, or Sept. 11, 2001, to present
Be the surviving spouse of an eligible service member who wasn’t dishonorably discharged
Iowa City has partnered with financial institutions GreenState Credit Union and Hills Bank to tackle the racial homeownership gap. Their down payment assistance program provides flexible financing options for underserved neighborhoods. Eligible homebuyers can receive up to $15,000 as a 10-year forgivable loan for down payment assistance. In addition, they’ll get access to complimentary homebuyer education and financial counseling from Horizons, a human services organization based in eastern Iowa.
Borrowers must:
Have an income between $64,650 and $107,100, depending on household size
Finance through GreenState Credit Union or Hills Bank
Complete a HUD-approved homebuyer education course
Contribute a minimum of $250 for down payment or closing costs and have two months of housing payments in savings
Purchase a single-family or condo unit for no more than $271,000 in a low-income census tract area within the municipal boundaries of Iowa City
Pass Housing Quality Standards (HQS) inspection
Iowa Finance Authority’s FirstHome Program eases the financial strain for first-time homebuyers by providing a $2,500 grant toward their down payment and closing costs. A second option allows homebuyers to secure a second mortgage up to 5% of the home’s sale price, which must be repaid if the home is sold or refinanced, or when the first mortgage is paid off.
Borrowers must:
Have a minimum 640 credit score
Have a maximum 50% DTI ratio
Have a maximum $115,400 income for a two-person household
Purchase a home priced no more than $418,000 to $588,000, based on the location
Occupy the home as a primary residence within 60 days of close
Complete a homebuyer education course (mandatory for conventional loans)
Be a first-time homebuyer, a homebuyer purchasing in a targeted area or military member who wasn’t dishonorably discharged
Those who have never owned a home
Those who have not owned real estate within the last three years
→ Iowa conventional loans: Those with good credit and a decent down payment may find conventional loans to be a reliable option. These typically adhere to minimum mortgage requirements set by Fannie Mae and Freddie Mac.
→ Iowa FHA loans: FHA loans are a great alternative to conventional loans, as their requirements are generally more accessible. Borrowers can be approved with a credit score as low as 500 and a 10% down payment — and if you have at least a 580 score, you can put down as little as 3.5%.
→ Iowa VA loans: VA loan requirements offer flexibility and value for borrowers with a military background, including benefits like the option to purchase or refinance without a down payment or monthly mortgage insurance payments.
→ Iowa streamline refinances: Available for an FHA streamline refinance loan or VA interest rate reduction refinance loan (IRRRL), these refinance options involve less paperwork and hassle compared to other types. However, to take advantage of these options, you’ll need to refinance from one FHA loan to another FHA loan, or from a VA loan to another VA loan.
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