Hey Debra, I use my serger to cut and secure the raw edges on the towels. Throw them in the washer and then dryer.
Then I give a good steam press before hand hemming. The wrinkles in the dryer get fewer and fewer as they get used and run through washer and dryer multiple times. Sometimes I will iron them, sometimes I won't ... just depends LOL.
I've never had any problems treating my towels this way. If I baby them, they might last forever and where would be my motivation to weave more??? LOL
I have some hand towels that are over 25 years old and have been treated to my rough handling.