Getting the Best Mortgage Rates in Des Moines (10-15-30-Year Fixed, 5/1, 7/1 ARM)
Known for its cultural events, festivals, locally-owned restaurants, and entertainment districts, Des Moines is helping Iowa become much more than a traditional “fly-over” state.
In fact, the city was ranked by U.S. News & World Report as the ninth best place to live in the country.
If you’re planning on purchasing a home in Iowa’s capital city, you’ll want to make sure you get the best Des Moines mortgage rates to keep your loan manageable and affordable throughout the next few decades.
Conventional vs Adjustable Des Moines Mortgage Rates
Des Moines mortgage lenders provide a wide range of conventional and adjustable rate loan types, including those listed below.
Conventional Des Moines mortgages include:
- 10-year mortgage loans
- 15-year mortgage loans
- 20-year mortgage loans
- 30-year mortgage loans
A conventional mortgage rate in Des Moines is a loan that has a fixed-interest rate that won’t change throughout the life of the loan.
These types of Des Moines mortgage rates conform to established industry and regulatory guidelines based on size of the loan and your financial situation. Terms for conventional Des Moines mortgages typically range between 10 to 30 years.
Conversely, adjustable rate Des Moines mortgages will have fluctuating interest rates, meaning that if the real estate market begins to offer more favorable rates, so will your mortgage.
With typically shorter terms and the opportunity to get better Des Moines mortgage rates over time, these types of loans are popular options for homeowners looking to refinance existing Des Moines mortgages.
Adjustable rate Des Moines mortgages include:
- 5/1 ARM
- 7/1 ARM
- 3/1 ARM
Des Moines, IA
Getting Better Des Moines Mortgage Rates with Larger Down Payments
Although some Des Moines mortgage lenders require a down payment of 3 percent, the best way to secure better mortgage rates in Des Moines is to put down at least 20 percent of the home’s value.
Along with getting more favorable Des Moines mortgage rates, a higher down payment means that you can avoid paying extra for private mortgage insurance (PMI).
Des Moines mortgage lenders require the purchase of mortgage insurance for smaller down payments to protect their investments in case borrowers stop making payments.
Typically, borrowers must continue paying until they reach a loan-to-value ratio of 80 percent. While it may not help you cut down costs over the long-term, it certainly does provide short-term affordability for a Des Moines mortgage.
According to Zillow, the average premium for PMI ranges between $30-$70 for every $100,000 borrowed, which could make it an affordable compromise for borrowers that can’t put down the full 20 percent.
Conclusion – Additional Considerations for Des Moines Mortgage Rates
When searching for the best mortgage rates in Des Moines, there are a few additional pieces of information to keep in mind.
If you have a good, great, or excellent credit history and you are seeking a Des Moines mortgage rate for a loan totaling over $424,100, some lenders may be able to provide more competitive mortgage rates in Des Moines.
For this reason, it’s important to confirm current mortgage rates in Des Moines and terms for specific amounts before making a commitment.
Additionally, it’s also important to keep in mind that APR and payment estimates do not include state-specific taxes or required insurance premiums.
As such, you should expect that your monthly Des Moines mortgage payment will be greater when taxes and insurance products are added.
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