Mortgage Rates in Spencer, Iowa — March 2026
Updated March 2026 | Based on Spencer market data and regional lending conditions
Spencer is a growing city in Iowa with a population of 11,233. The current 30-year fixed mortgage rate in Spencer is 6.89%, which is 0.24% above the national average. With a median home price of $159,000 and a 20% down payment of $31,800, homebuyers can expect a monthly principal and interest payment of approximately $837.
Current Mortgage Rates in Spencer, IA
Below are the current average mortgage rates available in the Spencer 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 | 6.89% | 6.65% | +0.24% |
| 15-Year Fixed | 6.1% | 5.89% | +0.21% |
| 5/1 ARM | 6.33% | 6.15% | +0.18% |
| FHA | 6.57% | 6.25% | +0.32% |
| VA | 6.32% | 6.05% | +0.27% |
| Jumbo | 7.14% | 6.85% | +0.29% |
Spencer Housing Market Overview
The Spencer housing market offers relatively affordable housing compared to many major cities. The median household income in Spencer is $58,700, and the cost of living index is 84.1 (national average = 100). Based on the 28% affordability rule, the median income in Spencer is sufficient to afford the median-priced home.
Monthly Payment Breakdown for Spencer
Based on the median home price of $159,000 with 20% down ($31,800), here is what you can expect to pay monthly in Spencer:
15-Year vs. 30-Year Mortgage in Spencer
Choosing a 15-year mortgage in Spencer at 6.1% instead of a 30-year at 6.89% would save you $106,920 in total interest over the life of the loan. However, your monthly payment would be $1,080 instead of $837 — an increase of $243 per month.
Calculate Your Spencer 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 Spencer
What are the current mortgage rates in Spencer, IA?
As of March 2026, the average 30-year fixed mortgage rate in Spencer, Iowa is 6.89%, while the 15-year fixed rate is 6.1%. FHA loans average 6.57% and VA loans 6.32%. These rates are 0.24% above the national average of 6.65%.
How much is a monthly mortgage payment in Spencer?
Based on the median home price of $159,000 with 20% down, the estimated monthly mortgage payment in Spencer is $837 for principal and interest. Including property taxes of $217/month, the total monthly housing cost is approximately $1,054.
What income do I need to buy a home in Spencer?
Using the 28% rule, you would need an annual income of approximately $45,171 to afford the median-priced home in Spencer at $159,000. The median household income in Spencer is $58,700. The median income is currently sufficient to meet this threshold.
Is Spencer a good place to buy a home in 2026?
Spencer offers a below-average cost of living with a cost of living index of 84.1 (national average = 100). The property tax rate in Iowa is 1.64%, which is above the national average. Spencer has a population of 11,233 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 Spencer, Iowa area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.