Mortgage Rates in Waterloo, Iowa — March 2026
Updated March 2026 | Based on Waterloo market data and regional lending conditions
Waterloo is a growing city in Iowa with a population of 67,314. The current 30-year fixed mortgage rate in Waterloo is 6.74%, which is 0.09% above the national average. With a median home price of $135,000 and a 20% down payment of $27,000, homebuyers can expect a monthly principal and interest payment of approximately $700.
Current Mortgage Rates in Waterloo, IA
Below are the current average mortgage rates available in the Waterloo area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.74% | 6.65% | +0.09% |
| 15-Year Fixed | 5.98% | 5.89% | +0.09% |
| 5/1 ARM | 6.24% | 6.15% | +0.09% |
| FHA | 6.34% | 6.25% | +0.09% |
| VA | 6.14% | 6.05% | +0.09% |
| Jumbo | 6.94% | 6.85% | +0.09% |
Waterloo Housing Market Overview
The Waterloo housing market offers relatively affordable housing compared to many major cities. The median household income in Waterloo is $42,250, and the cost of living index is 80.5 (national average = 100). Based on the 28% affordability rule, the median income in Waterloo is sufficient to afford the median-priced home.
Monthly Payment Breakdown for Waterloo
Based on the median home price of $135,000 with 20% down ($27,000), here is what you can expect to pay monthly in Waterloo:
15-Year vs. 30-Year Mortgage in Waterloo
Choosing a 15-year mortgage in Waterloo at 5.98% instead of a 30-year at 6.74% would save you $88,200 in total interest over the life of the loan. However, your monthly payment would be $910 instead of $700 — an increase of $210 per month.
Calculate Your Waterloo Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Waterloo
What are the current mortgage rates in Waterloo, IA?
As of March 2026, the average 30-year fixed mortgage rate in Waterloo, Iowa is 6.74%, while the 15-year fixed rate is 5.98%. FHA loans average 6.34% and VA loans 6.14%. These rates are 0.09% above the national average of 6.65%.
How much is a monthly mortgage payment in Waterloo?
Based on the median home price of $135,000 with 20% down, the estimated monthly mortgage payment in Waterloo is $700 for principal and interest. Including property taxes of $177/month, the total monthly housing cost is approximately $877.
What income do I need to buy a home in Waterloo?
Using the 28% rule, you would need an annual income of approximately $37,586 to afford the median-priced home in Waterloo at $135,000. The median household income in Waterloo is $42,250. The median income is currently sufficient to meet this threshold.
Is Waterloo a good place to buy a home in 2026?
Waterloo offers a below-average cost of living with a cost of living index of 80.5 (national average = 100). The property tax rate in Iowa is 1.57%, which is above the national average. Waterloo has a population of 67,314 and offers a very affordable lifestyle.
Mortgage Rates in Other Iowa Cities
Related Tools & Guides
Last updated: March 2026. Rates are approximate averages based on regional lending data for the Waterloo, Iowa area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.