Minnesota Mortgage and Refinance Rates
As of Tuesday, October 26, 2021, current rates in Minnesota are 3.15% for a 30-year fixed, 2.44% 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.
About our Mortgage Rate Tables: The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our "Advertisers"). Other lenders' terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a "Next" button that can be used to click-through to the Advertiser's own website or a phone number for the Advertiser.
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Loan Terms for Bankrate.com Customers: Advertisers may have different loan terms on their own website from those advertised through Bankrate.com. To receive the Bankrate.com rate, you must identify yourself to the Advertiser as a Bankrate.com customer. This will typically be done by phone so you should look for the Advertisers phone number when you click-through to their website. In addition, credit unions may require membership.
Loans Above $548,250 May Have Different Loan Terms: If you are seeking a loan for more than $548,250, lenders in certain locations may be able to provide terms that are different from those shown in the table above. You should confirm your terms with the lender for your requested loan amount.
Taxes and Insurance Excluded from Loan Terms: The loan terms (APR and Payment examples) shown above do not include amounts for taxes or insurance premiums. Your monthly payment amount will be greater if taxes and insurance premiums are included.
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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.
- Credit score of at least 620
- Debt-to-income ratio (DTI) of no more than 45 percent
- Down payment of at least 10 percent of the loan amount
- Pay private mortgage insurance (PMI) if down payment is less than 20 percent
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.
- 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.