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Minnesota Mortgage Rates

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Use SmartAsset's mortgage comparison tool to compare mortgage rates from the top banks and find the one that best suits your needs.

Overview of Minnesota Mortgages

Minnesota is a prosperous state in the Upper Midwest with high levels of education and voter turnout. Minnesota mortgage rates have remained below the national average over the past decade. Minnesota counties’ conforming loan limits hold steady at average, but there’s a bit more variation in the FHA loan limits.

Today's Mortgage Rates in Minnesota

Product Today Last Week Change

National Mortgage Rates

Source: Freddie Mac Primary Mortgage Market Survey, SmartAsset Research
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Minnesota Mortgage Rates Quick Facts
  • Average Home Value: $191,500 (zillow.com)
  • Loan Funding Rate: 69%
  • Average Mortgage Rate: 3.93%
  • Homeownership Rate: 70.1% (St. Louis Fed)
  • Average Annual Mortgage Payment: $8,698

Historical Mortgage Rates in Minnesota

The North Star State is famously home to 10,000 lakes, Voyageurs National Park and the diverse cultural hub of the Twin Cities, which more than half of its residents call home. Minnesota mortgage rates are typically lower than the national average. The 2016 Minnesota mortgage rates are continuing to follow that trend.

Minnesota Historic Mortgage Rates

YearMinnesota RateU.S. Rate
198213.9114.73
198311.8712.26
198411.4511.99
198510.8011.17
19869.759.79
19878.638.95
19888.828.98
19899.739.81
19909.539.74
19919.139.07
19927.997.83
19937.006.93
19947.717.31
19957.847.69
19967.697.58
19977.537.52
19986.966.97
19997.267.14
20007.967.86
20016.886.94
20026.376.44
20035.465.67
20045.445.68
20055.625.85
20066.376.54
20076.296.42
20085.946.06
20094.955.05
20104.724.81
20114.454.56
20123.583.65
20133.853.84
20144.194.13
20153.903.88

Minnesota Mortgages Overview

Minnesota real estate is a bit more affordable than other parts of the nation. The average home goes for $226,618, which is just below the average sale price of $236,450, according to Zillow.

Minnesota Mortgage Rates

Single-Family Homes
Percentage of Homes88.60%
Average Property Value$141,219.18
Condominiums
Percentage of Homes6.70%
Average Property Value$100,964.89
PUD Homes
Percentage of Homes1.20%
Average Property Value$118,113.60
Townhomes
Percentage of Homes3.40%
Average Property Value$102,760.80

The state’s mostly standard home prices is reflected in the fact that the conforming loan limit for every Minnesota county is the standard $417,000. The majority of the state’s 87 counties have a typical FHA limit of $271,050. Fifteen counties have FHA limits of $282,900 or $326,600.

Conforming and FHA Loan Limits by County

CountyConforming LimitFHA Limit
Aitkin$417,000$271,050
Anoka$417,000$326,600
Becker$417,000$271,050
Beltrami$417,000$271,050
Benton$417,000$271,050
Big Stone$417,000$271,050
Blue Earth$417,000$271,050
Brown$417,000$271,050
Carlton$417,000$271,050
Carver$417,000$326,600
Cass$417,000$271,050
Chippewa$417,000$271,050
Chisago$417,000$326,600
Clay$417,000$271,050
Clearwater$417,000$271,050
Cook$417,000$282,900
Cottonwood$417,000$271,050
Crow Wing$417,000$271,050
Dakota$417,000$326,600
Dodge$417,000$271,050
Douglas$417,000$271,050
Faribault$417,000$271,050
Fillmore$417,000$271,050
Freeborn$417,000$271,050
Goodhue$417,000$271,050
Grant$417,000$271,050
Hennepin$417,000$326,600
Houston$417,000$271,050
Hubbard$417,000$271,050
Isanti$417,000$326,600
Itasca$417,000$271,050
Jackson$417,000$271,050
Kanabec$417,000$271,050
Kandiyohi$417,000$271,050
Kittson$417,000$271,050
Koochiching$417,000$271,050
Lac Qui Parle$417,000$271,050
Lake$417,000$271,050
Lake of The Woods$417,000$271,050
Le Sueur$417,000$326,600
Lincoln$417,000$271,050
Lyon$417,000$271,050
McLeod$417,000$271,050
Mahnomen$417,000$271,050
Marshall$417,000$271,050
Martin$417,000$271,050
Meeker$417,000$271,050
Mille Lacs$417,000$326,600
Morrison$417,000$271,050
Mower$417,000$271,050
Murray$417,000$271,050
Nicollet$417,000$271,050
Nobles$417,000$271,050
Norman$417,000$271,050
Olmsted$417,000$271,050
Otter Tail$417,000$271,050
Pennington$417,000$271,050
Pine$417,000$271,050
Pipestone$417,000$271,050
Polk$417,000$271,050
Pope$417,000$271,050
Ramsey$417,000$326,600
Red Lake$417,000$271,050
Redwood$417,000$271,050
Renville$417,000$271,050
Rice$417,000$271,050
Rock$417,000$271,050
Roseau$417,000$271,050
St Louis$417,000$271,050
Scott$417,000$326,600
Sherburne$417,000$326,600
Sibley$417,000$326,600
Stearns$417,000$271,050
Steele$417,000$271,050
Stevens$417,000$271,050
Swift$417,000$271,050
Todd$417,000$271,050
Traverse$417,000$271,050
Wabasha$417,000$271,050
Wadena$417,000$271,050
Waseca$417,000$271,050
Washington$417,000$326,600
Watonwan$417,000$271,050
Wilkin$417,000$271,050
Winona$417,000$271,050
Wright$417,000$326,600
Yellow Medicine$417,000$271,050

Keep in mind that some states are “recourse” states, where a lender is allowed to go after your assets or savings for a “deficiency.” That deficiency means the difference between your home’s worth and the amount owed on a mortgage if you go into foreclosure. But Minnesota is a “non-recourse” state, meaning you generally would not be liable for the deficiency in a foreclosure.

Minnesota is also a “deed of trust” state, which is different than a mortgage. When you take out a mortgage in Minnesota you’ll most likely get a “deed of trust.” That means that a lender can bypass the court system if it wants to foreclose on a home. Instead, the lender can involve a third party and initiate a “power of sale” on the home it wants to auction off.

Minnesota has fairly significant seller disclosure laws. Home sellers are required to disclose any physical defects within the home, as well as environmental information - like train tracks near the house where trains can be heard daily. Regardless, it is always a wise idea to get a home inspection before closing on a property.

30-Year Fixed Mortgage Rates in Minnesota

If you are looking for a home loan in Minnesota, more likely than not you will land on a 30-year fixed-rate mortgage. This is the most popular type of home loan and is especially attractive to people who plan on staying in their new home for a long time. As its name implies, a fixed-rate mortgage is one in which the interest rate remains the same for the duration of the loan. In addition to a 30-year loan, you can also consider 15-year or 40-year terms.

The average Minnesota mortgage rate for fixed-rate 30-year mortgages is 4.25%.

Minnesota Jumbo Loan Rates

Conforming loan limits in the North Star State stick to the average $417,000 level because most homes fit within that range. Because of that, there are fewer “jumbo loan” mortgages in Minnesota. These loans exceed the $417,000 conforming loan amount.

If you do need to take on a jumbo loan in order to purchase the Minnesota home that you have your heart set on, remember that your loan will be accompanied by higher interest rates. That may be reason enough to reconsider and stick to a home that fits more comfortably in your budget.

The average jumbo loan rate in Minnesota is 3.88%.

Minnesota ARM Loan Rates

If you are purchasing a starter home that you plan on moving out of relatively quickly, an adjustable-rate mortgage (ARM) may be something for you to consider. The interest rate on an ARM is generally lower than that on a fixed-rate mortgage for a set period of time between one and 10 years, depending on the terms of the loan. When that introductory period ends however, the rate can change and you can usually count on it going up.

On the plus side, there are less surprises with an ARM than you might think. The loan’s terms lay out how often the rate can increase, as well as the highest maximum amount it can jump to. So you are aware upfront what the highest possible rate is.

Even if you plan to be out of the home before the introductory rate ends, it is best that you check the cap on the interest rate listed in the terms before signing, to ensure that it is something you can afford to pay if your plans were to change.

The average rate for an ARM in Minnesota is ________ (3.19%).

Minnesota Mortgage Resources

For homebuyers looking for a part of Minnesota to call their own, there are resources out there to help you in your mortgage process.

The City of Lakes Community Land Trust Homebuyer Initiated Program offers grants to low- to moderate-income families to help them buy a home. The HIP Affordability Investment Grant reduces the amount of mortgage financing needed to purchase a home in Minneapolis. These grants range from $25,000 to $60,000 depending on the income and size of the household. The Rehab Grant offers up to $25,000 for homeowners to repair their Homebuyer Initiated Program-purchased home.

The Minneapolis Advantage Program offers buying incentives for foreclosed homes in targeted Minneapolis neighborhoods. Up to $20,000 is offered for closing costs, minor repairs or down payment assistance.

The Minnesota Housing Mortgage Credit Certificate (MCC) Program offers a tax credit of up to $2,000 per year for first-time homebuyers in the Twin Cities area. This helps to reduce the buyer’s federal income tax.

Available Resources

ResourceProblem or IssueWho QualifiesWebsite
City of Lakes Community Land Trust – Homebuyer Initiated Program (HIP)Selected buyers purchasing homes currently on the market, up to $60,000 for home purchase or up to $25,000 for rehab.Homebuyers who have an income limit of up to 80% of area median income.http://www.clclt.org/ownership-options/
Minneapolis Advantage ProgramOffers up to $20,000 for closing costs, down payment, or minor repairs to purchase a foreclosed home in target neighborhoods. Homebuyers who have an income limit of up to 120% of area median income.http://ownahomemn.org/resources/program/minneapolis-advantage-program
Minnesota Housing Mortgage Credit Certificate Tax credit for up to $2,000/year.First-time homebuyers in the Twin Cities metro area.http://www.mnhousing.gov/wcs/Satellite?c=Page&cid=1391029245339&pagename=External%2FPage%2FEXTStandardLayout
USDA Rural Development - Single family loansOffers payment assistance to increase an applicant’s repayment ability. Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; Not be suspended or debarred from participation in federal programs.http://www.rd.usda.gov/programs-services/all-programs/single-family-housing-programs
Home Affordable Refinance ProgramRefinancing.Single family homes and condos that fit within lending loan limits.http://www.harp.gov/

And the United States Department of Agriculture Rural Development offers a program in rural Minnesota communities to help residents secure affordable housing. It is worth checking to see if you quality from a loan or grant from the USDA.

Minnesota Mortgage Taxes

Minnesota charges transfer taxes on real estate transactions. Deed taxes are $1.65/$500 or 0.33% and mortgage registry taxes are $0.23/$100 or 0.23%. Discuss this tax with your lawyer or accountant before buying. In Minnesota transactions, the seller typically pays this fee.

If you are a homeowner in Minnesota and you itemize deductions on your taxes, take note that you are allowed to deduct the mortgage interest you pay from your taxable income on both your federal income taxes and your state income taxes.

Minnesota Mortgage Refinance

Homeowners in the North Star State who want to refinance should look into the Home Affordable Refinance Program of Minnesota. The program accepts single family homes and condos, and residents who qualify have access to interest and principal payment reductions, as well as low closing costs.

Best Places To Get A Mortgage

SmartAsset’s interactive mortgage map highlights the best counties in the country (and in each state) for securing a mortgage. Hover over counties and states to see data points for each region, or use the map’s tabs to view the top counties for each of the factors driving our analysis.

Worst
Better
Rank County Loan Funding Rate 5 Year Borrowing Costs Property Tax Annual Mortgage Payment

Methodology For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.

To calculate the overall borrowing costs, we looked at the expected costs over the first five years of a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on the annual principal and interest payments for a $200,000 loan in that location, using average mortgage rates in each county.

Finally, we ranked locations based on these four factors, and then averaged those rankings, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.

Sources: Mortgage Bankers Association, US Census Bureau 2015 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset