Today's average 30-year mortgage rate in Minnesota is 5.88%, lower than the national average of 6.40%. Minnesota offers programs like Start Up and Step Up to help reduce mortgage costs for homebuyers.
Mortgage
Today's Mortgage Rates in Minnesota (October 2024)
Updated: October 9, 2024
Advertising & Editorial Disclosure
MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot of rates to analyze rate information for Minnesota. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless specifically noted otherwise, rates featured in the content are annual percentage rates (APRs).
This data was last updated on October 2024.
Current Mortgage Rates in Minnesota
In October 2024, the average APR for a 30-year fixed-rate mortgage in Minnesota is 5.9%, down from 6.0% the previous month. This slight decrease could save you around $7,112 over the life of the loan on a $250,000 loan with a 20% down payment, excluding other costs like property taxes or HOA fees.
Rates shift frequently due to changing economic conditions and Federal Reserve policies. The line chart below shows the recent month-to-month changes in mortgage rates.
Even small changes in mortgage rates can significantly impact your finances. Understanding the current mortgage rate in Minnesota can help you budget for your home financing.
Who Needs to Know Current Mortgage Rates in Minnesota?
New homeowners and refinancers benefit from tracking today's mortgage rates in Minnesota.
First-time homebuyers
Knowing current mortgage rates in Minnesota can help first-time homebuyers compare offers and understand the market before getting a home loan.
Homeowners with mortgages
If current rates are more favorable, homeowners may benefit from lower monthly payments by considering a mortgage refinance.
If you're looking to buy a home in Minnesota with a 30-year fixed-rate mortgage, the current mortgage rate is 5.88%. To refinance the same type of loan, it's 6.08%.
SEE MORTGAGE RATES IN OTHER STATES
Current Mortgage Rates in Minnesota by Loan Type
A 30-year fixed-rate mortgage in Minnesota generally has a higher interest rate than a 15-year fixed-rate mortgage. A longer term adds more risk for lenders due to potential market changes and the extended period for missed payments.
When exploring mortgage loan types in Minnesota, you'll see that rates vary by loan type. Use a mortgage calculator to estimate your monthly payments and understand how different rates affect your budget.
Data filtered by:Results filtered by:
Loan Type:
Loan Type:10-Year Fixed
| 5.16% | APR5.37% |
INTEREST RATE VS. APR: WHAT'S THE DIFFERENCE?
The interest rate is a yearly charge for borrowing money through a mortgage. In Minnesota, you'll typically see a 5.81% average interest rate for a 30-year fixed-rate mortgage.
The APR (annual percentage rate) represents the yearly cost of a loan, including additional fees — such as mortgage points — beyond just the mortgage interest rate. Minnesota's average APR for a 30-year fixed-rate mortgage is 5.88%. This gives you a better idea of the total cost of your mortgage each year.
Current Mortgage Rates in Minnesota by Credit Score
In Minnesota, if your credit score is 740 or higher and you're putting down 5% to 20%, you'll see an average APR of 6.44% for a 30-year fixed mortgage. With a credit score below 680, the average APR increases to 7.42%.
Your credit score directly impacts the mortgage rates you might get. Check out the interactive table below to see what rates you could qualify for based on your credit score and down payment.
Data filtered by:Results filtered by:
Credit Score Range:
Credit Score Range:680 - 740
Down Payment:
Down Payment:20% or higher
| 10-year Fixed | APR6.17% |
| 15-year Fixed | APR5.14% |
| 20-year Fixed | APR5.97% |
| 30-year Fixed | APR6.22% |
| 5-year ARM | APR7.38% |
| 7-year ARM | APR7.32% |
Mortgage Types in Minnesota
In October 2024, 30-year fixed-rate VA loans in Minnesota offer the lowest average APR at 5.68%. Understanding different loan types helps you choose the best option for your financial needs.
Mortgage Type | Definition | Impact on Rates | 30-Year Rates in Minnesota |
|---|---|---|---|
Conventional Loans | A conventional loan is a mortgage not insured by government agencies in Minnesota. | Conventional loans may offer lower rates for borrowers with excellent credit in Minnesota. | 5.88% |
FHA Loans | An FHA loan is insured by the Federal Housing Administration, accessible to Minnesota homebuyers. | FHA loans can provide competitive rates for Minnesota borrowers with lower credit scores. | 6.24% |
VA Loans | A VA loan is backed by the Department of Veterans Affairs for eligible Minnesota veterans. | VA loans often come with lower rates for Minnesota veterans, thanks to government backing. | 5.68% |
USDA Loans | USDA loans support rural homebuyers in Minnesota through the U.S. Department of Agriculture. | USDA loans offer low rates for eligible rural and suburban Minnesota homebuyers. | currently unavailable |
Jumbo Loans | A jumbo loan exceeds the conforming loan limits set by FHFA in Minnesota. | Jumbo loans might have higher rates due to the larger loan amounts in Minnesota. | 6.30% |
MORTGAGE RATE STRUCTURES IN MINNESOTA
Mortgage rates come in two kinds: fixed and adjustable.
- Fixed-rate mortgages offer stability since the rate stays the same throughout your loan term, guaranteeing that your monthly mortgage payments will remain the same.
- Adjustable-rate mortgages (ARMs) may start with lower interest rates than fixed types, and your monthly mortgage payments could decrease if interest rates drop.
As of October 2024, the average APR in Minnesota for a 30-year fixed-rate mortgage is 5.88% and 7.14% for a seven-year ARM.
Mortgage Lenders in Minnesota
First Midwest Bank, Lower and Bank of America are Minnesota's top mortgage lenders due to their state availability, Better Business Bureau (BBB) accreditation and homeowner assistance programs. Other lenders may also meet your mortgage needs.
Mortgage rates can differ between lenders due to varying options and terms. To secure the best rate, compare offers from multiple lenders.
- First Midwest Bank
- 8Number of Mortgage Options
- YesOnline Application
- A+BBB Rating
- Monday to Friday, 8 am to 7 pm ET Saturday, 8 am to 1 pm ETCustomer Service Hours
First Midwest Bank offers online and in-person services in Minnesota. It provides conventional, FHA and VA loans, along with community experts and heroes loans. Community experts need a 720 credit score with no down payment, while the Heroes loan requires the same score with a 1% down payment.
Support is available Monday to Friday from 8 a.m. to 7 p.m. ET and Saturday from 8 a.m. to 1 p.m. ET. First Midwest Bank also offers Home Manager and Down Payment Assistance Programs to help with homeownership costs.
Pros
- Prequalification available online
- Specialized loans for professionals
- BBB A+ accredited institution
Cons
- Limited branch availability in seven states
- Credit score requirements unclear
- Bank of America
- 6Number of Mortgage Options
- YesOnline Application
- ABBB Rating
- Monday to Friday, 8 am to 10 pm ET Saturday 8 am to 6:30 pm ETCustomer Service Hours
Bank of America offers a range of mortgage options, including fixed-rate, adjustable-rate, FHA and VA loans. Its Affordable Loan Solution requires a 3% down payment, while VA loans offer no down payment for eligible veterans and service members.
Customer service is available Monday to Friday from 8 a.m. to 10 p.m. ET and Saturday until 6:30 p.m. ET via phone, virtual and in-person meetings. Bank of America also provides assistance programs like America’s Home Grant® and Down Payment Grant to help with costs.
Pros
- Unique mortgage products
- Client Assistance Program
- Grant programs available
Cons
- No prequalification without online profile
- Minimum credit requirements not disclosed
- Lower.com
- 5Number of Mortgage Options
- YesOnline Application
- A+BBB Rating
- Monday to Friday, 9 am to 5 pm ETCustomer Service Hours
Lower provides mortgage options online, including conventional and FHA loans. A minimum credit score of 580 is required.
Customer service via phone or text is available Monday through Friday, 9 a.m. to 5 p.m. ET. Lower is a top HELOC lender and offers a Buy Before You Sell program, which assists homeowners in buying a new property before selling their current one.
Pros
- Online prequalification available
- Buy Before You Sell program
- A+ BBB-accredited business
Cons
- No unique mortgage choices
- Expert advisor call needed
- No in-person support
Mortgage Programs in Minnesota
Homeownership brings with it hidden costs that can impact your budget. You can tap into resources like Minnesota Housing, which provides mortgage programs to help you navigate the complexities of homebuying.
Program | Description |
|---|---|
Start Up | Caters to first-time homebuyers who haven't owned a home in the past three years. It has income limits of up to $142,800 and house price limits of $515,200 in some areas. It provides up to $18,000 for down payments and closing costs. Completing a homebuyer education course is required to qualify for Minnesota's competitive mortgage rates. |
Step Up | Has higher income limits of $185,700 and the same house price limits as Start Up. It offers up to $18,000 for down payments and closing costs. All new homeowners must complete a homebuyer education course. Refinancing is available, providing access to various mortgage rates. |
Downpayment and Closing Cost Loans | Qualifying for Start Up or Step Up gives you access to additional loans for down payments and closing costs. You can receive up to $18,000 with the same interest rate as your primary mortgage over a 10-year term, or up to $16,500 as a deferred payment due when your mortgage ends. |
FAQ: Mortgage Rates in Minnesota
Today's mortgage rates in Minnesota can impact your home-buying decision. We've addressed common questions to help you stay informed about your mortgage options.
What are the current mortgage rates in Minnesota?
Current average APRs for Minnesota can vary based on different loan types, among other factors. As of October 2024, a 30-year fixed conforming loan has an average APR of 5.88%, while a seven-year ARM jumbo loan has an average APR of 7.28%.
How do mortgage rates in Minnesota compare to national rates?
Comparing Minnesota to national rates, a 30-year fixed-rate mortgage has an average APR of 5.88% in Minnesota, which is lower than the national average of 6.40%. For a five-year adjustable-rate mortgage, the average APR in Minnesota is 7.33%, compared to 7.92% nationally as of October 2024.
How does my credit score impact the mortgage rates I get in Minnesota?
In Minnesota, your credit score significantly affects the low mortgage rates you may qualify for. Higher credit scores typically secure lower interest rates.
Are there any special mortgage programs in Minnesota to help homebuyers?
Mortgage programs in Minnesota, such as Start Up, Step Up and Downpayment and Closing Cost Loans, can assist homebuyers with the purchasing process.
How can I get the best possible mortgage rate in Minnesota?
To secure the best possible mortgage rate in Minnesota, improve your credit score, shop around with different lenders and consider a larger down payment. A substantial down payment can often secure more favorable rates.
What are today's mortgage refinance rates in Minnesota?
Today's refinance rates in Minnesota, on average, are 5.40% for a 15-year fixed and 6.08% for a 30-year fixed.
How do I calculate my mortgage payments?
You can calculate your mortgage payments using a mortgage calculator for Minnesota. It can help you estimate your monthly payments by considering interest rates, loan terms and other factors.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
sources
- Minnesota Housing. "Buy a Home." Accessed October 9, 2024.