Minnesota Mortgage Calculator

Mortgage is next to the only affordable option for low to average income home buyers in many parts of Minnesota and the rest of the United States. On this page we offer a convenient Minnesota home loan calculator to gauge your potential expenses, and up-to-date answers to several frequently asked questions concerning buying a house in Minnesota.

Mortgage details
Home price
$
Down payment
$
Loan term
Y
Interest rate
%
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Mortgage results
Total amount paid
Interest
$
Principal
$
Total principal & interest$0
Monthly payment$0
Total interest paid$0
Payoff dateDate
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Detailed payment info

DatePaymentPrincipal PaidInterest PaidRemaining Balance

Today's Mortgage Rates Trends in Minnesota

Best mortgage lenders in Minnesota

The most popular mortgage lenders in Minnesota operate nationwide. These include such recognizable names as Rocket Mortgage, Change Home Mortgage, AmeriSave. Several lesser known but trustworthy options include Minnesota-based Minnesota Residential Mortgage Inc, First Class Mortgage Inc.

How to calculate mortgage payment in Minnesota

Use our fast and simple mortgage calculator MN to evaluate your future monthly expenses. A detailed step-by-step instruction follows below.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Minnesota for thorough planning of your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in Minnesota parameters.

The first piece of the puzzle is the home price – that is, how much you are planning to spend on your future property. A down payment is the portion of this price to be paid upfront. To avoid costly insurance, you must come up with at least 20% down (in case of a conventional loan). The remaining amount makes up the principal (e.g. 80% of the home price given a 20% down payment).

A loan term is the period of full repayment of your mortgage by making scheduled payments. Fixed-rate conforming loans are allowed to last 30 years most, while adjustable-rate options typically have shorter terms.

An interest rate is a fixed or floating fraction of the principal that you must pay through the duration of the loan. It is worth mentioning that you are actually charged an annual percentage rate (commonly abbreviated as APR), which is not exactly the same as the interest rate. Although the interest rate makes up the bulk of the APR value, the latter also includes various fees (e.g. origination fee, closing costs, insurance payments etc).

For more precise assessment, the interest rate used for these calculations is based on the current mortgage rates in Minnesota, given a $400,000 home price and a 10% down payment.

Median property taxes in Minnesota counties

The property tax is another important thing to consider when selecting your future house. Many lenders insist on setting up a mortgage escrow account to ensure the borrower’s keeping up with the tax and insurance costs.

County Avg. property tax rate Avg. home value
Aitkin County $783 $169,300
Anoka County $2,243 $229,900
Becker County $1,226 $182,100
Beltrami County $1,366 $153,100
Benton County $1,921 $162,600
Big Stone County $952 $97,000
Blue Earth County $1,461 $185,600
Brown County $1,257 $135,300
Carlton County $1,636 $162,800
Carver County $2,992 $315,500
Cass County $940 $178,700
Chippewa County $1,010 $104,500
Chisago County $2,511 $206,400
Clay County $1,464 $173,100
Clearwater County $1,040 $122,800
Cook County $1,016 $241,400
Cottonwood County $936 $89,400
Crow Wing County $1,186 $188,100
Dakota County $2,482 $266,000
Dodge County $1,629 $167,900
Douglas County $1,416 $197,200
Faribault County $773 $86,500
Fillmore County $1,217 $148,300
Freeborn County $1,127 $105,100
Goodhue County $2,002 $191,400
Grant County $1,167 $104,900
Hennepin County $2,831 $274,900
Houston County $1,419 $164,200
Hubbard County $1,251 $182,700
Isanti County $1,836 $172,900
Itasca County $906 $156,100
Jackson County $998 $114,100
Kanabec County $1,425 $147,200
Kandiyohi County $1,432 $167,000
Kittson County $691 $71,800
Koochiching County $641 $108,300
Lac qui Parle County $739 $81,100
Lake County $795 $165,800
Lake of the Woods County $1,102 $128,400
Le Sueur County $1,655 $190,700
Lincoln County $970 $95,300
Lyon County $1,411 $135,900
Mahnomen County $1,211 $97,300
Marshall County $688 $104,500
Martin County $800 $112,400
McLeod County $1,864 $150,400
Meeker County $1,483 $161,600
Mille Lacs County $1,661 $151,400
Morrison County $1,401 $159,100
Mower County $948 $114,700
Murray County $793 $107,700
Nicollet County $1,581 $178,000
Nobles County $922 $118,300
Norman County $870 $88,500
Olmsted County $1,891 $224,900
Otter Tail County $1,046 $170,900
Pennington County $1,086 $133,300
Pine County $1,222 $151,600
Pipestone County $761 $91,200
Polk County $1,354 $152,600
Pope County $1,218 $163,600
Ramsey County $2,345 $231,100
Red Lake County $893 $107,300
Redwood County $955 $97,400
Renville County $971 $100,100
Rice County $1,868 $205,300
Rock County $800 $133,600
Roseau County $1,190 $118,500
Scott County $2,828 $293,200
Sherburne County $2,184 $245,000
Sibley County $1,528 $142,800
Stearns County $1,182 $178,300
Steele County $1,625 $154,300
Stevens County $1,210 $150,800
St. Louis County $1,102 $157,500
Swift County $806 $102,100
Todd County $1,261 $141,000
Traverse County $763 $79,800
Wabasha County $1,545 $167,300
Wadena County $1,186 $118,900
Waseca County $1,488 $147,800
Washington County $2,553 $288,600
Watonwan County $891 $94,500
Wilkin County $840 $114,400
Winona County $1,502 $158,400
Wright County $2,080 $228,900
Yellow Medicine County $1,054 $99,100

Source: American Communities Survey 2016, U.S. Census

Minnesota Housing Market 2023

The past year has seen a steep increase in the market value of housing in Minnesota. This continues a longstanding trend amplified by the COVID pandemic. Nevertheless, the pace of growth has diminished compared to the previous year, while both purchase and refinance rates have been on the increase for some time and are expected to rise further in the near future.

How do I calculate my mortgage payment?

The most convenient way to do this is to make use of our calculator. It's powered by a simple formula, which you can also use to calculate the amount to be paid by hand:

M = P*i(1 + i)^n / (1 + i)^n – 1

M – estimated monthly mortgage payment;

P – principal;

I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);

N – the loan term expressed in months (in other words, the overall number of monthly payments)

Imagine you are applying for a 15-year mortgage loan with a fixed 6.99% APR (which is .0699 as a unit fraction). The house costs $500k, with 10% ($50,000) to be paid down. The principal amount (P) will be equal to 90% of the initial home cost ($500,000 – $50,000 = $450,000).

I = .0699 % / 12 = .005825%.

Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.

M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.

So, you are going to pay about $4042 a month.

It is important to note that the calculated M value is approximate, as no extra fees are taken into account.

Tips for first-time home buyers in Minnesota

First, there are several federal agencies (USDA, FHA and VA) that guarantee loans for selected borrowers. Many first-time homebuyers can find options which most fit their budget.

Besides these government-guaranteed programs, it is worth considering some offers from UHC (Minnesota Housing Corporation) available to Minnesotans. In particular, first-time home buyers can apply for FirstHome – down payment and closing costs assistance program, if they qualify for a FHA loan and their FICO score is at least 660. This option covers up to 6% of the loan amount toward down payment and/or the closing costs. It is important to note that this option comes in the form of a 30-year-fixed-rate second loan only. If you do not qualify for the FirstHome program, do not despair. Minnesota Housing Score Loan is an alternative program that covers up to 4%. The minimum satisfactory credit score is 620.

Some useful tips for first-timers:

  1. Get pre-approved beforehand. This will increase your creditworthiness in the home sellers’ eyes. It is highly recommended to get the pre-approval letters from not only one, but at least two or three different lenders.
  2. Compare different mortgage rates. Choose at least three lenders. The more, the better.
  3. Do preliminary calculations based on the amount you have been pre-approved for. Plan your future expenses.
  4. Set aside for a down payment as much as possible – and as early as possible. The down payment will decrease the principal amount, which, in turn, can reduce your potential expenses. So it is important to start saving in advance.
  5. If you are eligible for a VA loan, consider this option first of all.
  6. Consider government-backed plans, as well as local assistance programs. There can be tempting offers – don't miss the boat.
  7. Pay off previous debts, if possible.

FAQ

How much house can I afford in Minnesota?

To see whether a given property is within the limits of your budget, you must know its value and the tentative loan terms. Feed these to the calculator on the current page. Don't forget to account for your other debts, as well. Most advisers suggest keeping your mortgage payment at less than 28% of your monthly income, with total debt under 36%.

What credit rating do I need to qualify for a mortgage loan in Minnesota?

There is no definitive answer to this question. For conventional loans, credit scores starting from 620 are generally satisfactory. However, the exact conditions vary widely and include other essential criteria, including your income, current debt amount etc. For government-backed FHA plans, there is no predefined threshold, and each lender has the right to set their own requirements. Typically, a credit score of 500 or better may qualify.

What is the average mortgage rate in Minnesota?

At the time of writing, the average rates for conventional fixed-rate mortgages are 7.4610% and 6.6650% for a 30-year and a 15-year loan term, respectively.