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Mortgage rates in Minnesota
Interest rates on a 30-year $300,000 conventional mortgage start at around 3.125%
If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.250% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your Minnesota home will depend on several factors, including your credit score, loan amount and lender.
Rates were last checked on October 6 and are from the Consumer Financial Protection Bureau (CFPB) website.
Your credit score affects the rate you’ll get
People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in Minnesota by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).
|Credit score||$200,000 mortgage||$300,000 mortgage||$400,000 mortgage||$500,000 mortgage|
*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage
Interest rates vary by lender
Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.
Comparing lenders can help you find the best deal. Select See rates to provide the company with basic property and financial details for personalized rates.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Interest rates also vary by loan type
The type of loan you get can also affect how much you pay for your Minnesota home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.
|Loan type||$200,000 mortgage||$300,000 mortgage||$400,000 mortgage||$500,000 mortgage|
|15-year FHA||2.500%||2.375%||Not eligible||Not eligible|
|30-year FHA||3.000%||3.000%||Not eligible||Not eligible|
*Based on a 10% down payment, fixed interest rate and 710 credit score
Research ahead of time to get the best rates
Follow these suggestions to help yourself get a better rate on your mortgage.
- Compare loan products. Many lenders have multiple loan products with different interest rates. See what loans and rates you qualify for.
- 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.
- 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.
Home values in Minnesota are forecast to increase
Minnesota’s housing market is booming right now, but the hassle of bidding wars and rejected offers may be worth it, according to Zillow. The site predicts that home values in the state will increase by as much as 14% in Faribault, home of two highly acclaimed schools: the Minnesota State Academy for the Blind and the Minnesota State Academy for the Deaf.
The Minneapolis-St. Paul and St. Cloud areas may see increases of 11%, while home values in more rural areas, such as Winona are forecast to rise only 2%.
5 fast facts about the Minnesota housing market
If you’re planning to move to Minnesota, you may want to consider the following facts as you shop around for a mortgage:
- Minnesota’s counties average a 1.17% property tax rate, which is slightly below the national average and ranks 20th in the US.
- This state is known as The Land of 10,000 lakes and is at the very tip of what some call “Tornado Alley,” so you may be required to add both flood and tornado insurance to your homeowners policy.
- Median home prices in Minnesota hit an all-time high of $337,000 in 2021, which is still well below the national median of $380,000.
- Make sure your home inspection includes a radon test, as two of every five homes in Minnesota have levels high enough to pose a health risk.
- Minnesota has both dual agency — which allows the buyer and seller to both be represented by the same real estate agent — and broker reciprocity so you can view and tour all listings in the area, regardless of the listing agent.
Mortgage rates in Minnesota vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.
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