Mortgage Rates in Ottumwa, Iowa — March 2026
Updated March 2026 | Based on Ottumwa market data and regional lending conditions
Ottumwa is a growing city in Iowa with a population of 24,488. The current 30-year fixed mortgage rate in Ottumwa is 6.79%, which is 0.14% above the national average. With a median home price of $163,000 and a 20% down payment of $32,600, homebuyers can expect a monthly principal and interest payment of approximately $849.
Current Mortgage Rates in Ottumwa, IA
Below are the current average mortgage rates available in the Ottumwa 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 | 6.79% | 6.65% | +0.14% |
| 15-Year Fixed | 6.02% | 5.89% | +0.13% |
| 5/1 ARM | 6.27% | 6.15% | +0.12% |
| FHA | 6.52% | 6.25% | +0.27% |
| VA | 6.27% | 6.05% | +0.22% |
| Jumbo | 7.04% | 6.85% | +0.19% |
Ottumwa Housing Market Overview
The Ottumwa housing market offers relatively affordable housing compared to many major cities. The median household income in Ottumwa is $51,800, and the cost of living index is 84.6 (national average = 100). Based on the 28% affordability rule, the median income in Ottumwa is sufficient to afford the median-priced home.
Monthly Payment Breakdown for Ottumwa
Based on the median home price of $163,000 with 20% down ($32,600), here is what you can expect to pay monthly in Ottumwa:
15-Year vs. 30-Year Mortgage in Ottumwa
Choosing a 15-year mortgage in Ottumwa at 6.02% instead of a 30-year at 6.79% would save you $107,280 in total interest over the life of the loan. However, your monthly payment would be $1,102 instead of $849 — an increase of $253 per month.
Calculate Your Ottumwa 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 Ottumwa
What are the current mortgage rates in Ottumwa, IA?
As of March 2026, the average 30-year fixed mortgage rate in Ottumwa, Iowa is 6.79%, while the 15-year fixed rate is 6.02%. FHA loans average 6.52% and VA loans 6.27%. These rates are 0.14% above the national average of 6.65%.
How much is a monthly mortgage payment in Ottumwa?
Based on the median home price of $163,000 with 20% down, the estimated monthly mortgage payment in Ottumwa is $849 for principal and interest. Including property taxes of $213/month, the total monthly housing cost is approximately $1,062.
What income do I need to buy a home in Ottumwa?
Using the 28% rule, you would need an annual income of approximately $45,514 to afford the median-priced home in Ottumwa at $163,000. The median household income in Ottumwa is $51,800. The median income is currently sufficient to meet this threshold.
Is Ottumwa a good place to buy a home in 2026?
Ottumwa offers a below-average cost of living with a cost of living index of 84.6 (national average = 100). The property tax rate in Iowa is 1.57%, which is above the national average. Ottumwa has a population of 24,488 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 Ottumwa, Iowa area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.