Mortgage Rates in Knoxville, Iowa — March 2026
Updated March 2026 | Based on Knoxville market data and regional lending conditions
Knoxville is a smaller Iowa community of 43,950 where home prices remain well below the national median, making homeownership more attainable. The current 30-year fixed rate here is 6.67% (0.02% above the national average). At a median home price of $162,500, the estimated $1,032/month payment (with 20% down) is affordable on the local median income of $66,500.
Current Mortgage Rates in Knoxville, IA
Below are the current average mortgage rates available in the Knoxville 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 | 6.67% | 6.65% | +0.02% |
| 15-Year Fixed | 5.93% | 5.89% | +0.04% |
| 5/1 ARM | 6.2% | 6.15% | +0.05% |
| FHA | 6.46% | 6.25% | +0.21% |
| VA | 6.21% | 6.05% | +0.16% |
| Jumbo | 6.92% | 6.85% | +0.07% |
Knoxville Housing Market Overview
At $162,500, Knoxville offers more affordable housing than most U.S. metros. The local cost of living index is 93.7 (100 = national average), and the median household income of $66,500 provides comfortable purchasing power in this market.
Monthly Payment Breakdown for Knoxville
Based on the median home price of $162,500 with 20% down ($32,500), here is what you can expect to pay monthly in Knoxville:
15-Year vs. 30-Year Mortgage in Knoxville
Choosing a 15-year mortgage in Knoxville at 5.93% instead of a 30-year at 6.67% would save you $104,400 in total interest over the life of the loan. However, your monthly payment would be $1,092 instead of $836 — an increase of $256 per month.
Calculate Your Knoxville 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 Knoxville
What are the current mortgage rates in Knoxville, IA?
As of March 2026, the average 30-year fixed mortgage rate in Knoxville, Iowa is 6.67%, while the 15-year fixed rate is 5.93%. FHA loans average 6.46% and VA loans 6.21%. These rates are 0.02% above the national average of 6.65%.
How much is a monthly mortgage payment in Knoxville?
Based on the median home price of $162,500 with 20% down, the estimated monthly mortgage payment in Knoxville is $836 for principal and interest. Including property taxes of $196/month, the total monthly housing cost is approximately $1,032.
What income do I need to buy a home in Knoxville?
Using the 28% rule, you would need an annual income of approximately $44,229 to afford the median-priced home in Knoxville at $162,500. The median household income in Knoxville is $66,500. The median income is currently sufficient to meet this threshold.
Is Knoxville a good place to buy a home in 2026?
Knoxville offers a below-average cost of living with a cost of living index of 93.7 (national average = 100). The property tax rate in Iowa is 1.45%, which is near the national average. Knoxville has a population of 43,950 and offers a very affordable lifestyle.
Mortgage Rates in Other Iowa Cities
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Last updated: March 2026. Rates are approximate averages based on regional lending data for the Knoxville, Iowa area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.