Interest Rate
4.78%
APR*
4.862%
Average home price
$256.857

If you are planning to purchase a home in Minnesota, you’ll want to make sure that you are getting the best mortgage rate possible. The final rate you receive will depend on a range of factors, including your down payment, your credit score, your current income, as well as your debt-to-income ratio.

Help yourself acquire the best mortgage rate available to you in Minnesota by checking your credit report for errors prior to applying for a home loan and making sure that you have all of your documentation in order to make pre-approval through a reputable lender a breeze.

Here’s a quick look at current Minnesota mortgage rates:

Loan Program Mortgage Rate APR* 1 Day Change
Conventional 30 year fixed 4.78% 4.862% -0.04%
Conventional 20 year fixed 4.363% 4.47% +0.04%
Conventional 15 year fixed 4.006% 4.158% -0.06%
Conventional 10 year fixed 3.75% 3.933% Unchanged
Conventional 7 year ARM 4.756% 4.091% +0.12%
Conventional 5 year ARM 4.486% 4.13% +0.26%
FHA 30 year fixed 3.952% 4.746% +0.02%
VA 30 year fixed 4.25% 4.541% -0.06%
VA 15 year fixed 4.077% 4.664% Unchanged

Data source: ©Zillow, Inc. Use is subject to the Terms of Use

Buying a Home in Minnesota

Looking at property in Minnesota and wondering if this is a good time to buy? It could be the perfect time to find a dream home in the Land of 10,000 Lakes. Here’s what you need to know:

Start by zeroing in on the area of the state you find the most appealing. Minnesota boasts a total population of almost 5.4 million people, of which nearly one in ten live in the state’s five biggest cities:

  • Minneapolis
  • St. Paul (state capital)
  • Rochester
  • Duluth
  • Bloomington

Next, you’ll want to figure out how much home you can afford to buy. Minnesota ranks 28th in US homes for sale at average price, and 27th for homes over $1,000,000. Getting preapproval through a reputable mortgage lender can help you figure out what your budget is before you go looking for the perfect property.

First-time Homebuyers

Is this your first time purchasing a home? You may qualify for assistance via the Minnesota Housing Finance Agency (Minnesota Housing).

Minnesota Housing Finance Agency (Minnesota Housing) first-time homebuyer Start Up loan programs can be paired with down payment or closing cost assistance through the agency.

Minnesota Housing’s Monthly Payment Loan program provides up to $17,000 for a down payment or closing costs.

First-time homebuyers in Minnesota can also obtain down payment assistance through a Deferred Payment (up to $10,000 for a down payment or closing costs) or Deferred Payment Plus option (up to $13,000.)

To qualify for these first-time home buyer programs in Minnesota, you’ll need:

  • You must qualify for the Start Up or other Minnesota Housing Loan
  • Agree to a monthly payment term of 10 yea
  • Pay back the loan in monthly installments (same interest rate as mortgage)
  • Contribute at least $1000 of your own funds to the purchase
  • Agree to pay back Deferred Loans when the home is sold or refinanced.

Refinancing in Minnesota

If you want to take advantage of favorable Minnesota mortgage rates by refinancing your home in Minnesota, you can do any of the following:

  • Refinance to lower your interest rate
  • Refinance to lengthen the term of your loan
  • Refinance to access your home equity
  • Refinance to get rid of the PMI (Private Mortgage Insurance) requirement on your loan

You may even qualify for a streamlined refinance if you have a certain type of loan. Ask your lender for more information.

GUIDES

Buying a Home?

Each step-by-step guide is designed to shepherd you through a process from start to finish. Know what to expect and how to proceed, no matter where you are in your home buying journey.

1 The First Step in Buying a Home – Preapproval

What Is a Mortgage Preapproval? | How Much Will My Monthly Payment Be? | How Much Will My Down Payment Be? | How Long Does a Mortgage Preapproval Last? | What Is the Difference Between a Standard Preapproval and an Underwritten Preapproval?

Read More

3 How much money do I need?

How Can I Lower My Mortgage Payment? | How Can I Lower My Closing Costs? | When Do I Pay Out-Of-Pocket Costs? | What are Prepaid Items or Escrows? | What Will My Closing Costs Be?

Read More

4 The Basics of Mortgage

What Documents Need to be Updated During the Home Loan Process? | What Contingencies Do I Need? | How Important is the Closing Date? | Steps in the Loan Process | Understanding Common Mortgage Terms

Read More

5 Finding a Real Estate Agent

What Are the Top 6 Questions to Ask a Real Estate Agent? | Should I Use the Seller's Real Estate Agent? | Are Online Discount Realty Services a Good Idea? | How Much Does a Buyer's Real Estate Agent Cost? | Why Do I Need a Real Estate Agent to Buy a Home?

Read More
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