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Mortgage Calculator &
Closing Costs: Iowa City, IA

Mortgage payment estimates, closing cost breakdowns, and homebuying data for Iowa City, Iowa.

Median Home Price
$275K
Population
75K
Avg Monthly Rent
$1,180
Property Tax Rate
1.52% *
* Property tax shown is the Iowa state average effective rate. Actual rates vary by county, city, and school district — check with your local assessor for exact rates in Iowa City.
Iowa City vs Iowa Median
The median home price in Iowa City is $275,000, which is 31% above the Iowa state median of $210,000.

Mortgage Calculator — Iowa City, IA

Pre-filled with Iowa City median home price and Iowa tax/insurance rates. Adjust for your property.

$
$55,000
%
%
years
IA avg
%
$
Monthly Payment (PITI)
$1,889
Principal + Interest + Tax + Insurance + PMI
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Principal & Interest
$1,391
per month
Taxes & Insurance
$498
per month
Total Interest Paid
$281K
over 30 years
Total Loan Cost
$501K
all payments
Payment Breakdown
Loan Amount$220,000
Principal & Interest$1,391
Property Taxes$348
Homeowners Insurance$150
Total Monthly PITI$1,889

Closing Costs — Iowa City, IA

Estimated closing costs based on Iowa rates and fees applied to Iowa City prices.

$
%
Iowa: Avg closing costs 1.0% of price. Transfer tax: 0.16%.
Estimated Closing Costs
$10,521
3.8% of purchase price
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Lender Fees
$2,405
origination, underwriting
Third-Party
$2,825
appraisal, title, inspection
Government Fees
$440
transfer taxes, recording
Prepaids + Escrow
$4,851
taxes, insurance, interest
Itemized Costs
Loan Origination (0.8%)$1,980
Underwriting Fee$350
Credit Report$75
Appraisal$550
Home Inspection$450
Title Search + Insurance$1,675
Recording Fee$150
Transfer Tax$440
Prepaid Taxes (3 mo)$1,045
Prepaid Insurance (12 mo)$1,800
Prepaid Interest (15 days)$661
Escrow Reserves$1,345
Total Closing Costs$10,521

Monthly Payment Scenarios — Iowa City

Three down payment scenarios for a $275K home using Iowa's 1.52% tax rate and $1,800/yr insurance.

5% Down
$2,302/mo
Down: $13,750
Loan: $261K
P&I: $1,651
Tax: $348
Insurance: $150
PMI: $152
10% Down
$2,207/mo
Down: $27,500
Loan: $248K
P&I: $1,564
Tax: $348
Insurance: $150
PMI: $144
20% Down (No PMI)
$1,889/mo
Down: $55,000
Loan: $220K
P&I: $1,391
Tax: $348
Insurance: $150

Income needed (28% rule): $81K/year with 20% down, $95K/year with 10% down.

Rent vs Buy in Iowa City

Rent
$1,180/mo
vs
Buy (10% down)
$2,207/mo
Price-to-rent ratio: 19.4A ratio between 15-20 means the rent vs buy decision in Iowa City depends heavily on your timeline. If you plan to stay 5+ years, buying likely wins. For shorter stays, renting preserves flexibility.

Run a detailed Rent vs Buy analysis →

Buying a Home in Iowa City, Iowa

The median home price in Iowa City is $275,000, 31% above the Iowa state median of $210,000. With a population of 74,828, Iowa City is a smaller market where home prices reflect strong demand and local economic factors.

Property taxes in Iowa average 1.52% annually. This higher-than-average tax rate means a $275,000 home in Iowa City would carry roughly $348/month in property taxes alone — plan accordingly. Homeowners insurance in Iowa runs approximately $1,800 per year. This is within the normal range nationally.

Average rent in Iowa City is $1,180/month. The price-to-rent ratio in Iowa City is moderate, meaning the buy-vs-rent decision depends heavily on how long you plan to stay.

Iowa City presents moderate affordability. The $275K median puts homeownership within reach for median-income households, though down payment savings and closing costs require planning.

Run a Rent vs Buy analysis
Compare total costs of renting vs buying in Iowa City.
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