Iowa Mortgage Calculator

Iowa homes are inexpensive, around $227,000 at the median, but property taxes are relatively high at about 1.3% of value. A state "rollback" sets the share of value that is taxed each year, so your taxable value can change even when the assessment does not. Insurance is below average.

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The calculator is pre-filled for a $227,300 home (the Iowa median, ranked 45th of 51) with 20% down at 7.40%. That comes to $1,615.19 a month: $1,259.02 principal and interest, $244.33 tax, $111.83 insurance. With 5% down and PMI it is $1,941.23.

Homestead exemptions and property tax relief

For 2026 assessments, Iowa replaced the old homestead credit with an exemption equal to 10% of taxable value, at least $5,500 and at most $20,000. It first shows up on bills due in September 2027. Owners 65 and older get an additional exemption. Apply with the city or county assessor.

First-time buyer programs

The Iowa Finance Authority's FirstHome program offers first-time buyers either a $2,500 grant or a second loan of up to 5% of the price, but not both.

Transfer and recording taxes

The transfer tax is $0.80 per $500 of price above the first $500, about $363 on a $227,300 home, and by custom the seller pays it.

Closing costs to plan for

Iowa uses state-run title guaranty and abstracts rather than private title insurance, which keeps title costs low. Buyer costs are mostly lender fees and prepaids.

When property tax bills are due

Iowa property taxes are paid in two halves: the first is due September 1 and the second March 1, and each becomes delinquent a month later, with interest of 1.5% a month. Because Iowa taxes run a year and a half behind the assessment, the bill you pay in September 2027 is based on the January 1, 2026 value. That lag matters when you budget: a recent sale price usually shows up in the tax bill only after a delay.

Before you buy in Iowa

File the homestead exemption with the city or county assessor by July 1 of the year you first claim it. For assessment year 2026 the exemption equals 10% of taxable value (at least $5,500 and at most $20,000), replacing the old credit, and owners 65 or older on January 1 get an additional $6,500. A claim filed after July 1 counts for the next year. Owners who already had the old credit before July 1, 2026 move to the new exemption automatically. Ask the seller whether drainage or special assessments are owed, because not every escrow pays them.

2026 loan limit in Iowa

FHFA 2026 one-unit conforming limits: all 99 counties use the $832,750 baseline. A median-home loan of $181,840 is conforming.

Iowa numbers used above

MeasureIowaU.S.
Median home value (ACS 2024)$227,300$360,600
Effective property tax rate1.29% (9th highest)0.89%
Average HO-3 premium (NAIC 2023)$1,342$1,737
Median household income$75,501$81,604
Median gross rent$981$1,487
Income needed at 28% (20% down)$69,222–

Frequently asked questions

When are Iowa property taxes due?

Half by September 1 and half by March 1. Each becomes delinquent on October 1 or April 1.

How much is Iowa's new homestead exemption?

For 2026 assessments it is 10% of taxable value, between $5,500 and $20,000, plus $6,500 more for owners 65 and older.

When do I apply for the Iowa homestead exemption?

File form 54-028 with the city or county assessor by July 1 of the year you first claim it.

What is the median-home payment in Iowa?

About $1,615.19 a month on a $227,300 home with 20% down at 7.40%, including tax and insurance.

Sources

See also: all states · house affordability · Iowa paycheck