Minnesota Mortgage Rates

Compare Minnesota mortgage rates and choose the best option for your needs.

By Myfin Team
Updated May 28, 2024
Loan Type
State
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Purchase Price
$
Down payment
$
%
Loan term
  • 10-Year Fixed
  • 15-Year Fixed
  • 20-Year Fixed
  • 30-Year Fixed
  • 40-Year Fixed
  • 1-Year ARM
  • 3-Year ARM
  • 5-Year ARM
  • 7-Year ARM
  • 10-Year ARM
  • 3-Year ARM I/O
  • 5-Year ARM I/O
  • 7-Year ARM I/O
  • I/O = Interest only
Credit score
  • 740-850
  • 720-739
  • 700-719
  • 680-699
  • 660-679
  • 640-659
  • 620-639
  • 350-620
EMPTY
More options
Points
  • Up to 3
  • 0
  • 0-1
  • 1-2
Property type
  • Single Family
  • Condo (Less than 4 stores)
  • Condo (More than 4 stores)
  • 41 - 2 units
  • 42 - 3 units
  • 43 - 4 units
Property use type
  • Primary Residence
  • Second Home
  • Investment
EMPTY
EMPTY
Showing 5 mortgages
NMLS#1025894
APR
7.511%
Payment
$2,236/mo
Rate
7.490%
Fees
$662
Includes 0.012 Points (($38))
Details
30-Year Fixed;
Purchase
On partner's site
Get details
NMLS#1907
  • 0% Down VA Loans for Veterans & Military
  • Secure preapproval quickly with 24/7 access
  • Competitively low VA rates, no PMI required
  • Over 300,000 verified 5-star reviews
On partner's site
Get details
NMLS#Not a Lender
  • Premier resource for one-stop lender shopping
  • Get personalized purchase & refinance options
  • Find out what you're eligible for fast
On partner's site
Get details
NMLS#3029
  • Top 3 Lender: Trusted and established.
  • 19K+ 5-star reviews: Proven customer satisfaction.
  • Wide mortgage selection: Tailored solutions.
  • Unmatched expertise: Your path to homeownership.
On partner's site
Get details
NMLS#491986
  • Minimum 620 credit score needed to prequalify
  • 0% down USDA loan for rural homebuyers
  • 97% of borrowers would recommend to friends or family
On partner's site
Get details
Data provided by Icanbuy. Payments do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. More information on rates and product details.
For example, if you apply for a 15-year $400,000 mortgage with an interest rate of 6.15% and a down payment of 10% you would receive $360,000 and make 180 payments of $3,067.14. The total amount paid would be $552,084.

Today's Mortgage Rates Trends in Minnesota

Mortgage in Minnesota: Top Lenders in 2024

Are you considering purchasing a home in Minnesota State? The easiest way to do so is to use a mortgage loan, which is often the most straightforward approach. However, it's crucial to note that terms and conditions for home loans can differ significantly among various mortgage lenders (you can use our mortgage calculator to estimate your future expenses). In the framework of this guide, we’ll review some of the top-rated lenders and try to find out which ones are worth considering.

MN Mortgage Lenders Comparison

All the lenders under review are reputable companies known for offering competitive rates and demonstrating strong track records. To provide you with comprehensive insights, we will compare them based on several essential criteria, including APR, minimum down payment, minimal requirements, customer service quality, and any unique features or benefits they may offer. This comparison will help you make an informed decision when selecting the lender that best suits your financial needs and preferences.

Quicken Loans Mortgage

Quicken Loans is the previous brand name of Rocket Mortgage. It has been a prominent player in the consumer lending market since its inception in 1999. As part of the Rocket Mortgage family, you can expect the same range of options, terms, and services. These encompass various mortgage types, including conventional mortgages with fixed or adjustable rates, jumbo loans, home equity loans, HELOCs (Home Equity Line of Credit), and government-insured programs such as FHA and VA loans, catering to both purchase and refinancing needs.

For conventional loans, a minimum credit score of 620 is required. The advertised APR for a 30-year fixed-rate mortgage stands at 7.199%, which may be comparatively higher than some similar offerings. However, it's worth noting that Quicken Loans operates nationwide, serving all states and Washington D.C., ensuring accessibility for a wide range of borrowers.

Pros: Cons:
High availability. No construction loans.
Easy application process. Rates above the market average.
Plethora of experience.

Change Home Mortgage

Change Home Mortgage was established in 1994. It is a mortgage broker with a focus on serving non-traditional and low-income borrowers, including immigrants and those employed on a temporary basis. This emphasis is underscored by its certification as a Community Development Financial Institution (CDFI). In addition to offering conventional options, Change Home Mortgage provides access to various government-backed loans such as FHA, VA, and USDA loans. Notably, the broker promotes an alternative to the FHA plan - a conventional loan requiring only a 3% down payment. Moreover, it offers jumbo and reverse mortgages, along with remortgaging options.

However, specific details such as interest rates, fee schedules, and borrower eligibility criteria are not publicly disclosed.

Pros: Cons:
Perfect for low- to moderate-income borrowers. Not licensed in Massachusetts, Missouri and New York.
A good choice of government-backed plans available. Doesn't disclose the exact terms and requirements.
A close-to-nationwide coverage.

AmeriSave

AmeriSave originates from Georgia, ensuring the state consistently receives enticing offers. The lender's credibility is underscored by its exceptional ratings from BBB (A+) and Trustpilot (4.3/5).

While the advertised rate stands at 4.899%, achieving this rate typically requires a FICO score of 740 and a 20% down payment. It's important to note that your actual rate may exceed the advertised rate. For conventional loans, a credit score of 620 is required, while government-insured plans are accessible with a score as low as 600.

Pros: Cons:
Highly lucrative mortgage rates. Not all of the lender fees included in the closing costs are transparently disclosed at the lender’s website.
Diversity of loan types offered. This includes purchase and refinancing with fixed and adjustable rates, as well as the three main kinds of government-backed loans (FHA, VA and USDA).
Easy and convenient, mobile-friendly application process.

Average Mortgage Rate in Minnesota from 1978 to 2018

The chart shows average conventional mortgage 30-Year Fixed Rates in Minnesota.

Source: Federal Housing Finance Agency Monthly Interest Rate Survey

Information about the Housing Market and Real Estate Prices in Minnesota

Criteria Amount, $
The median home value in Minnesota $291,739
The income required to buy the median priced home in Minnesota $47,800
The monthly mortgage payment required to buy the median priced home in Minnesota $1,107
The median household income for Minnesota $80,866

Things to Consider When Choosing a Mortgage Lender

Obtaining a mortgage loan entails a significant commitment spanning 15 to 30 years, demanding careful consideration before entering into an agreement with any lender. When selecting a lending institution, several key factors merit attention. These include interest rates, loan terms, fees, reputation, customer service, and the lender's financial stability. Conducting thorough research and comparing offers from multiple lenders can empower borrowers to make informed decisions aligned with their financial goals and circumstances.

Type of Lender

Essentially, there are two popular options: banks and online mortgage lenders. Banks frequently offer attractive rates, but they tend to conduct strict credit checks. This often leads to longer approval times, and eligibility criteria can be challenging to meet. On the other hand, online lenders work much faster, and their requirements for homebuyers are generally less severe. Moreover, online lenders often provide a more streamlined application process and may offer competitive rates tailored to different financial profiles.

APR and Fees

Every loan comes with associated costs, and a mortgage is no different. Beyond the interest rate, borrowers must consider additional fees such as the origination fee, mortgage insurance fee, closing costs, and more. As of the current date, for a fixed-rate 30-year loan, the average mortgage rate in Minnesota stands at 6.58%. It's essential for borrowers to thoroughly understand and factor in all these costs when evaluating their mortgage options.

Terms and Conditions

Here, it's crucial to take into account the minimum required down payment size, which can range from 0% to 20% depending on factors such as the loan type and your current status (e.g., military, employed, self-employed, etc.). Additionally, the lifespan of the loan, representing its total length, is another important parameter to consider. Common options include 15 and 30 years. These factors significantly influence the overall cost and feasibility of the mortgage, so careful consideration is necessary when making decisions.

What Mortgage Lender is the Number One in Minnesota?

The list of reliable MN mortgage lenders is extensive, so it's hard to give an unambiguous answer to this question. Everything depends. For example, one of the industry leaders is Rocket Mortgage with a loan volume of $11.5 billion for the year 2021. To take your pick wisely, check our list of recommended lenders.

First-Time Homebuyer Programs in Minnesota

Buying a home for the first time poses considerable challenges. Fortunately, residents of Minnesota can tap into various government programs aimed at enhancing mortgage affordability.

  1. The Federal Housing Administration (FHA) loan program offers insurance from the federal government to buyers. The insurance fee is incorporated into the total loan cost. In return, homebuyers benefit from a low interest rate and minimal credit requirements. With this program, individuals with a FICO score as low as 500 and a debt-to-income ratio of just 50% can qualify.
  2. The USDA loan program targets those residing in rural areas. Participants in this program can secure a mortgage loan with a zero down payment. However, their annual income must not exceed 115% of the average income in the region.
  3. The VA loan programs are insured by the Department of Veterans Affairs, making this mortgage option accessible to former military personnel or their spouses.

Pre-Approval: What Does It Mean?

Preliminary approval is a sort of confirmation of a prospective homebuyer’s credibility. It lets home sellers know that lenders are ready to approve a mortgage loan to the buyer. To get a pre-approval one needs to provide documentary evidence of his paying capacity. A typical document set includes earning statements, account statements, a W2 form, or an alternative proof of income for at least 2 years. Additionally, it’s necessary to fill in the Uniform Residential Loan Application form.

FAQ

Whether I Qualify for a Mortgage in Minnesota or Not?

Qualification criteria for mortgage borrowers may vary slightly among different lending entities, but typically, they entail a credit score of 620 or higher and a debt-to-income ratio of at least 50%. Additionally, borrowers are required to demonstrate their ability to repay the loan and their credibility through various documents such as tax and account statements, employment verification, and credit reports. Moreover, borrowers must have the financial capability to make the required down payment.

What is the maximum mortgage duration in MN?

The maximum length of a mortgage loan in the US is 30 years. There can be some exceptions with unqualified mortgages where the term can reach 40 years. However, these cases are very rare, and the terms of such loans are far from being favorable.

What is the mortgage rate right now in Minnesota?

There is no simple answer to this question, as the final APR is defined individually for each borrower. However, there are average values for every US state. In Minnesota, the current average mortgage rate for a 30-year period is 6.58%. For the term of 15 years, it is 5.98%.