What are average mortgage rates in Minnesota in 2026?

Mortgage rates in Minnesota generally track national averages. As of 2026, expect 30-year fixed rates from 5.5% to 7.5% for good credit borrowers. Use CalcDeck's Minnesota mortgage calculator to model your payment at current rates.

How much are closing costs in Minnesota?

Closing costs in Minnesota typically range from 2% to 5% of purchase price, including lender fees, title insurance, and prepaid items. Use CalcDeck's Minnesota mortgage calculator to include closing costs in your calculation.

What are property tax rates in Minnesota?

Property tax rates in Minnesota range from 0.3% to 2.5% of assessed value. CalcDeck's Minnesota calculator includes property tax in your PITI payment.

What first-time homebuyer programs exist in Minnesota?

Minnesota offers down payment assistance, favorable-rate mortgages, and tax credits through state agencies. Use CalcDeck's Minnesota calculator to see how programs affect your payment.

How do I use the CalcDeck Minnesota mortgage calculator?

Enter home price, down payment, interest rate, and loan term. Adjust property tax and insurance to match Minnesota averages. Get instant monthly payment, total interest, and amortization schedule.

Minnesota Mortgage Calculator

Median home prices, property taxes, and monthly payment estimates for Minnesota homeowners.

Minnesota at a Glance

Median Home Price: $315,000
Property Tax Rate: 1.05%
Median Household Income: $82,306
Annual Property Tax: $3,308

Sources: Zillow ZHVI (2024), Tax Foundation (2023), US Census ACS (2023)

Monthly Mortgage Payment in Minnesota

Based on the Minnesota median home price of $315,000 at 6.7% interest (30-year fixed):

Payment Breakdown	20% Down	5% Down
Loan Amount	$252,000	$299,250
Principal and Interest	$1,626	$1,931
Property Tax (MN)	$276	$276
Homeowners Insurance	$125	$125
PMI	$0	$125
Total Monthly	$2,027	$2,456

How Much House Can You Afford in Minnesota?

Using the 28/36 rule (housing costs under 28% of gross income):

With 20% down, you need ~$86,860/year to afford Minnesota's median home
With 5% down, you need ~$105,270/year
Minnesota's median household income is $82,306

Minnesota insight: Minnesota's property tax rate of 1.05% is near the national average.

Minnesota Housing Market Overview

Minnesota's housing market has cooled from 2021 peaks but remains competitive. The statewide median of $315,000 reflects Minneapolis at $345,000, St. Paul $305,000, and Rochester $320,000. Rural areas offer better value—St. Cloud at $250,000 and Mankato $260,000. Inventory is at 2.7 months, slightly favoring sellers. The median household income of $82,306 yields a price-to-income ratio of 3.8, healthy. The effective property tax rate of 1.05% costs $3,308/year on a median home. Minnesota's cold winters drive up heating costs ($200–$350/month for natural gas), but the state's strong job market (Mayo Clinic, Target, 3M) supports housing demand. Population growth is concentrated in the Twin Cities metro.

First-Time Homebuyer Programs in Minnesota

The Minnesota Housing Finance Agency (Minnesota Housing) offers the Start Up program for first-time buyers, providing 30-year fixed-rate mortgages with down payment and closing cost loans of up to $17,000 at a 0% interest rate, deferred until the home is sold or refinanced. The Step Up program serves repeat buyers with similar terms. Minnesota Housing also offers the Monthly Payment Loan, providing a smaller amount at a fixed 4% interest over 10 years. The Mortgage Credit Certificate (MCC) program offers a 20% federal tax credit on mortgage interest. Local programs include Minneapolis' Homeownership Opportunity Minneapolis (HOM) program ($15,000 grants) and St. Paul's Downpayment and Closing Cost Loan ($10,000). Income limits: Hennepin County caps at $92,000 for a two-person household.

Tips for Homebuyers in Minnesota

1) Minnesota's 1.05% property tax means ~$276/month on a median home—very reasonable for the income level. 2) Heating costs run $2,500–$4,000/year; always check furnace age and efficiency ratings (AFUE) before buying. 3) The Twin Cities market is competitive for homes under $350,000; expect multiple offers and escalation clauses. 4) Buy in late fall/winter (October–February) for less competition and 2–4% price reductions. 5) Radon is prevalent throughout Minnesota; test every home and budget $1,000–$1,500 for mitigation. 6) Ice dams are a major concern—inspect roof ventilation, insulation, and eave condition; remediation costs $500–$2,000.

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Minnesota Mortgage FAQ

What is the median home price in Minnesota?

The median home price in Minnesota is approximately $315,000 as of 2024 (Zillow ZHVI). Your actual price will vary by city and neighborhood.

What is the property tax rate in Minnesota?

The effective property tax rate in Minnesota is approximately 1.05% (Tax Foundation). On a $315,000 home, that is about $3,308/year in property taxes.

How much income do I need to buy a home in Minnesota?

Using the 28/36 rule with 20% down at 6.7%, you would need about $86,860/year to afford the median Minnesota home at $315,000. With 5% down (including PMI), about $105,270.

What will my monthly mortgage payment be in Minnesota?

On Minnesota's median home price of $315,000 with 20% down at 6.7%, your total monthly payment (P and I plus tax plus insurance) is approximately $2,027. With 5% down including PMI, about $2,456.

Data sources: Zillow ZHVI typical home values (2024), Tax Foundation effective property tax rates (2023), US Census Bureau ACS median household income (2023). Mortgage rate assumption: 6.7% APR 30-year fixed. This is an estimate — use our calculator for personalized numbers.