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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.
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.
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 type||15-year average rate||30-year average rate|
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.
Which way are rates trending in Minnesota?
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 rate||Median loan amount||Estimated 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|
|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|
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.
- 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.
Historical mortgage interest rates in Minnesota
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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