Minnesota Mortgage and Refinance Rates

As of Thursday, December 2, 2021, current rates in Minnesota are 3.13% for a 30-year fixed, 2.43% for a 15-year fixed, and 3.00% for a 5/1 adjustable-rate mortgage (ARM).

We’ll help you find Minnesota mortgage and refinance rates well below the national average so you can apply and start saving on your home today.

Refinance while rates are still low

More than 11.5 million homeowners can still save money by refinancing their mortgage.

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Minnesota mortgage overview

By Zach Wichter

If you want to take out a mortgage to buy a home in Minnesota, you have several options to choose from. Before you do, make sure you find the type of mortgage that works best for you.

Minnesota conventional mortgages: To qualify for a conventional mortgage, you generally must meet the following requirements.

Minnesota FHA loans: If you don’t meet conventional loan requirements, you may qualify for an FHA loan. These are backed by the Federal Housing Administration, and the requirements include:

  • Credit score of at least 500
  • 10 percent down payment if credit score is between 500-579
  • 3.5 percent down payment if credit score is 580 or higher
  • DTI between 31 percent and 41 percent

Minnesota VA loans: Insured by the Department of Veterans Affairs, VA loans are offered to qualifying veterans and active duty members of the armed forces. VA loans don’t require a down payment or PMI, and can be obtained through a VA-approved lender.

First-time homebuyer programs in Minnesota

Minnesota offers first-time homebuyer programs that can help those who haven’t owned a home in the past three years find low-interest mortgages. State programs also offer smaller loans to help pay fees and closing costs.

Minnesota Housing Start Up

If you’re a first-time homebuyer or haven’t owned a home in the past three years, you may be eligible for the Minnesota Housing Start Up program, which includes fixed-interest mortgages with as little as 3 percent down required, along with closing cost and down payment assistance loans up to $17,000.

To help lower your monthly mortgage payment, the Start Up program also includes low- or no-mortgage insurance options.

To qualify:

  • You must meet Minnesota Housing income limits and purchase price limits ($340,000 in the Twin Cities metro and $294,600 in the remainder of the state, as of June 2020); and
  • You must meet minimum credit score requirements

Minnesota mortgage refinancing

For homeowners looking to refinance, Minnesota Housing offers the Step Up program, which includes affordable fixed-rate mortgages. To apply for a refinance through Step Up, contact a participating lender for specific requirements.

Minnesota mortgage resources