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Mortgage rates in Minnesota

Minnesota mortgage rates don’t vary too much across loan types, and closely follow the national average.

Updated

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Mortgage rates during the coronavirus

As mortgage rates fall to record lows in the wake of COVID-19, our partners are seeing an increase in demand for loans and refinancing. As they work through this influx of applications, you may see rates that are higher than expected — or no rates at all. We recommend comparing offers from multiple lenders to ensure you're getting the best deal possible.

Compare mortgage lenders in Minnesota

Mortgage rates in the North Star State average 4.672% for 30-year loans and 4.205% for 15-year options. And they are expected to stay at the 4% level in the coming year.

How much do Minnesota rates vary by loan type?

Average mortgage rates in Minnesota range from 4.099% to 4.746 % in 2018. Lenders use several factors, like the length of your term to calculate your rate. For instance, 15-year loans typically have a lower interest rate than the 30-year option.

2018 average rates in Minnesota by loan type

Loan type15-year average rate30-year average rate
Conventional4.327%4.729%
FHA4.190%4.746%
VA4.099%4.588%
USDANot available4.626%

Based on data from ffiec.cfpb.gov.

Let’s say your mortgage is $175,000. With a 30-year term, your monthly payment might be around $910, excluding taxes and other fees specific to your mortgage. But, with a 15-year option, your monthly payment increases by about $400 to $1,320.

Though 15-year home loans have higher monthly payments, shorter terms could translate to a savings of $89,640 in interest payments over the life of the loan.

Average mortgage rates in Minnesota are predicted to stay at or below the 4% mark in 2020.
US housing authorities anticipate nationwide mortgage rates to range from 3.55% to 3.90% in 2020. Minnesota rates have historically followed the national average and should stay below 4% in the upcoming year.

Compare mortgage rates throughout Minnesota

The North Star State has multiple metropolitan areas within its borders, but mortgage rates don’t change too much. So you can see home prices and monthly loan payments slightly fluctuate between $800 and $1,000.

We scoured data from the Home Mortgage Disclosure Act and determined what you might pay on the average 30-year fixed-rate mortgage in particular metropolitan areas throughout Minnesota. These estimated costs do not include any taxes or fees unique to your mortgage.

Metropolitan statistical area (MSA)Average mortgage rateMedian loan amountEstimated monthly cost
Duluth MSA (Carlton, Lake and St. Louis Counties, MN)4.763%$155,000$810
Fargo MSA (Clay County, MN)4.553%$175,000$890
Grand Forks MSA (Polk County, MN)4.698%$165,000$860
La Crosse MSA (Houston County, MN)4.749%$155,000$810
Mankato4.771%$175,000$920
Minneapolis MSA (Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Le Sueur, Mille Lacs, Ramsey, Scott, Sherburne, Washington and Wright Counties, MN)4.716%$235,000$1,220
Rochester4.669%$195,000$1,010
St. Cloud4.731%$165,000$860

Based on data from ffiec.cfpb.gov.

How to get the best mortgage rate in Minnesota

Follow these suggestions to help yourself get a better rate on your mortgage.

  1. Compare loan products. Many lenders have multiple loan products with different interest rates. See what loans and rates you qualify for.
  2. Become a credit rockstar. Paying down debts can boost your credit score and strengthen your overall credit profile. Lenders give better rates to borrowers with stronger credit.
  3. Factor in closing costs. Some lenders advertise a lower rate on the mortgage but tack on high closing costs. Average closing costs in Minnesota are approximately 0.91% to 1.21% of the final purchase price. Knowing about the fees beforehand can give you a more accurate picture of the total cost of your loan.

Historical mortgage interest rates in Minnesota

Bottom line

Historically, Minnesota follows the national average for mortgage rates and should stay around 4% in 2020. But ultimately, lenders charge their own rates. Shop around and compare home loans and lenders to find the right mortgage for you.

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