Costs to buy a house in Iowa | Iowa closing costs | Iowa house buying calculator | Homeownership costs | How to save when buying a home in Iowa
The average home buyer in Iowa spends between $16,399 and $57,833 when purchasing a $199,388 home — the state median value.
Keep in mind, this is just the cost of buying a home. After you close, you'll still need to budget for all the ongoing costs of homeownership.
If you're looking for ways to cut down on the costs of buying a home, Clever Real Estate can help. We're an agent-matching service that can help you compare real estate agents in your local area. All of our agents offer local expertise to keep more money in your pocket.
Average cost to buy a house in Iowa
Expense | Amount |
|---|---|
$1,994 to $5,982 | |
$6,979 to $39,878 | |
$1,815 to $2,723 | |
$3,932 | |
$214 | |
$214 | |
$1,250 to $4,890 | |
Total | $16,399 to $57,833 |
Buyer closing costs in Iowa
While the other costs to buy a house in Iowa are pretty transparent, Iowa closing costs are a bit more nuanced. They're actually a series of smaller costs lumped together into one total. Here's a breakdown of all of the Iowa closing costs you'll likely pay when buying a home.
Closing cost | Amount |
|---|---|
Closing fee | $199 |
Recording fee | $82 |
Title service fees | $0 |
Origination fee | $997 |
Underwriting fee | $600 |
Discount points | $1,595 per point |
Lender's title insurance | $140 |
Owner's title insurance | Typically paid by seller |
Prorated property tax | Varies |
Transfer tax | 0.16% |
Total | $3,932 |
Keep in mind, closing costs are often negotiable. However, to win the negotiation battle, you'll need a great agent who can work out a deal with the seller. Clever can match you with a top agent in your area that can get the seller to shoulder more of the above costs.
Contact us at Clever for top agent recommendations.
Cost to buy a house in Iowa calculator
Ongoing costs of homeownership in Iowa
Unfortunately, the cost to buy a house is just the beginning. After closing, you'll officially own the home and begin paying for the ongoing costs of homeownership.
Expense | Average monthly cost |
|---|---|
Mortgage (principle and interest) | $908 |
Homeowners insurance | $120 |
Taxes | Varies but averages $259 statewide |
Maintenance | $165 |
Utilities | $376 |
Total | $1,828 |
Note: All numbers are estimates based on state averages and a median home value of $199,388 and a down payment of 20%. | |
Besides the expenses outlined above, you'll also want to consider private mortgage insurance (PMI) and homeowner's association (HOA) fees.
- If you pay less than 20% as a down payment on your house, you'll probably have to pay PMI monthly until you get to 20% equity. For the average Iowa homeowner, this is between $87 to $294 a month.
- Some neighborhoods have HOA fees for the care and maintenance of common areas. The national average is around $250 per month.
» MORE: The true cost of homeownership
Top ways to save money when buying a house in Iowa
1. Look into better financing options
Paying off debts and getting your credit in the best shape possible before applying for a loan will help you get a better interest rate, which will lower your monthly payments for the life of the loan.
You can also shop around to compare lenders so you get the lowest fees and interest rates available. It may be a good idea to enlist the help of a mortgage broker if you're not sure how to go about vetting lenders.
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Get matched with a lender who can tell you how much house you can afford. To get started, where do you plan on buying?
2. Participate in home buyer programs Iowa
Iowa has a few statewide and regional programs that make home buying more affordable. For instance, the Iowa Finance Authority offers favorable lending options and down payment assistance to eligible buyers throughout the state.
There are also federal programs to choose from, like the USDA Rural Development program, which provides low-income Iowans the opportunity to buy or rent affordable housing in select rural areas. There are also a lot of local programs depending on where you’re buying — HUD has a comprehensive list on their website.
» MORE: First-time home buyer programs everyone should know about
3. Partner with an expert agent
Having an expert agent on your side can ensure you win the negotiating battle with the seller.
Clever can help match you with a knowledgeable, hyper-local agent that knows the ins and outs of how to save you money on your local fees. And best of all, our service is totally free!