Today's Mortgage Rates in Minnesota

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Updated: July 16, 2024

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Today's 30-year mortgage rate in Minnesota sits at an average of 6.82%, aligning closely with the national average of 6.90% for analogous mortgages. In Minnesota, homebuyers can find assistance through programs like Start Up and Step Up that can help reduce mortgage costs.

We'll guide you through understanding the nuances of Minnesota's average mortgage rates by loan type and illustrate how they correlate with your credit score. While exploring the variety of mortgage types and rate structures, you'll gain insights on choosing amongst the multitude of mortgage lenders and benefit from local programs designed to facilitate home purchasing in Minnesota.

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 content are annual percentage rates (APRs).

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This data was last updated on July 2, 2024.

Current Mortgage Rates in Minnesota

In July 2024, the average APR for a 30-year fixed-rate mortgage in Minnesota is 6.82%, up from 6.54% the previous month — an increase of 28 basis points. This rate movement translates to a higher total interest cost of $270,343 on a $250,000 loan with a 20% down payment, without accounting for additional expenses like property taxes or HOA fees, compared with the $256,986 total interest from the month before. A seemingly small uptick in your mortgage rate can impact your wallet by an additional $13,357 over the life of your loan, underscoring the influence of current mortgage rates on your finances.

Current Mortgage Rates in Minnesota (Jan to May)

\Understanding the current mortgage rate in Minnesota can help you budget for your future home. Market volatility and Federal Reserve policies are two of the main reasons rates can change day-to-day, affecting your monthly payments. The line chart demonstrates the changes in mortgage rates across the past few months, allowing you to see the rate trends you might face.

Who Needs to Know Today's Mortgage Rates in Minnesota?

New homeowners and refinancers stand to gain from tracking today's mortgage interest rates in Minnesota, reflecting shifts in the housing market:

    coupleG icon

    First-time homebuyers

    Getting to know current mortgage rates in Minnesota helps first-time homebuyers compare offers and understand the market before diving in.

    homeowner icon

    Homeowners with mortgages

    Homeowners may benefit from lower monthly payments by considering to mortgage refinance if current rates are more favorable.

Purchase rates and refinance rates can move in different directions. If you're looking to buy a home in Minnesota with a 30-year fixed-rate mortgage, the current mortgage rate stands at 6.82% — to refinance the same type of loan, it's at a higher 8.15%.

Current Mortgage Rates in Minnesota by Loan Type

A 30-year fixed-rate mortgage in Minnesota usually has a higher interest rate than a 15-year fixed-rate mortgage because the longer loan term introduces more risk for lenders; markets can change and there's a longer time for you to potentially miss payments.

When you're exploring mortgage loan types in Minnesota, you'll notice the rates will vary based on the loan you choose. To get a clear idea of what your monthly payments might look like, use a mortgage calculator — it can help you understand the financial impact of different mortgage rates on your budget.

Data filtered by:Results filtered by:
Loan Type:
Loan Type:10-Year Fixed
5.67%APR5.84%
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INTEREST RATE VS. APR: WHAT'S THE DIFFERENCE?

The interest rate is a yearly charge you pay for borrowing money through a mortgage. In Minnesota, you'll typically see a 6.73% average interest rate for a 30-year fixed-rate mortgage.

APR stands for annual percentage rate and it represents the yearly cost of a loan including additional fees — such as mortgage points — beyond just the mortgage interest rate. In Minnesota, the average APR for a 30-year fixed-rate mortgage is 6.82%. 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 a 740 or more and you're putting down 5% to 20%, you'll see an average APR of 7.13% for a 30-year fixed mortgage. With a credit score below 680, the average APR increases to 8.13%.

Your credit score directly impacts the mortgage rates you might get in Minnesota. To see what rates you could qualify for based on your credit score and down payment, check out the interactive table we've provided:

Data filtered by:Results filtered by:
Credit Score Range:
Credit Score Range:680 - 740
Down Payment:
Down Payment:20% or higher
10-year FixedAPR6.17%
15-year FixedAPR6.24%
20-year FixedAPR6.91%
30-year FixedAPR7.14%
5-year ARMAPR7.80%
7-year ARMAPR7.63%

Mortgage Types in Minnesota

In July 2024, 30-year fixed-rate VA loans have the lowest average APR for 30-year fixed-rate mortgages with a rate of 6.55%. As you explore mortgage options, knowing the various loan types shapes your decision-making, aligning a loan to your financial needs. Below is a breakdown of the mortgage loan types available in Minnesota:

Mortgage Type
Definition
Impact on Rates
30-Year Rates in Minnesota

Conventional Loans

A conventional loan in Minnesota is not insured or guaranteed by the federal government.

Conventional loans tend to have higher rates due to lack of government backing.

6.82%

FHA Loans

An FHA loan in Minnesota is insured by the Federal Housing Administration, designed for lower credit scores.

FHA loans often have lower interest rates to make buying homes more accessible.

0.00%

VA Loans

A VA loan in Minnesota is guaranteed by the Department of Veterans Affairs for eligible veterans and service members.

VA loans usually offer competitive rates due to government backing.

6.55%

USDA Loans

USDA loans in Minnesota support rural homebuyers with lower income, provided by the United States Department of Agriculture.

USDA loans typically have lower rates to assist rural community development.

currently unavailable

Jumbo Loans

Jumbo loans in Minnesota exceed conforming loan limits set by Fannie Mae and Freddie Mac.

Jumbo loans often carry higher rates reflecting the increased lending risk.

6.74%

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MORTGAGE RATE STRUCTURES IN MINNESOTA

Mortgage rates in Minnesota 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 won't change.
  • Adjustable-rate mortgages may start with lower interest rates compared to fixed types and your monthly mortgage payments could decrease if interest rates drop.

In Minnesota, as of July 2024, you're looking at an average APR of 6.82% for a 30-year fixed-rate mortgage and 7.39% for a seven-year ARM.

Mortgage Lenders in Minnesota

First Midwest Bank, Lower and Bank of America are solid options if you're planning to secure a mortgage in Minnesota. They stand out not just for state availability but also for their accreditation with the Better Business Forest Bureau and homeowner assistance programs. Other lenders in Minnesota might fit your mortgage needs.

The mortgage rate you're offered in Minnesota can vary depending on the lender you choose. Lenders have their own mortgage options and terms, influencing the rates they offer. To get the best deal on your mortgage, compare rates from different lenders in the state.


  • 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 sticks out as a go-to resource for borrowers in Minnesota, offering both online and in-person services. The lender's options are abundant, featuring conventional loans, FHA Loans, VA Loans, and unique products like Community Experts and Heroes loans, catering to a diverse array of needs. For the Community Experts and Heroes, a commendable credit score of 720 is the starting point, alongside favorable down payment terms – none for Community Experts and a mere 1% for Community Heroes.

    Support from First Midwest Bank is accessible Monday to Friday, 8 am to 7 pm ET, and even on Saturday from 8 am to 1 pm ET, with dedicated phone lines and in-person help to guide homebuyers through their journey. For additional support, the lender offers Homeowners Assistance Programs, including Home Manager and Down Payment Assistance Programs, empowering customers to tackle the financial challenges of homeownership. This level of service ensures borrowers can navigate mortgage processes with clarity and confidence.

    Pros

    • Prequalification available online
    • Specialized loans for professionals
    • BBB A+ accredited institution

    Cons

    • Limited branch availability (seven states)
    • Credit score requirements unclear
    First Midwest Bank

  • 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 serves Minnesotans both online and in person, providing several mortgage options suitable for a variety of borrowers. You can explore fixed-rate mortgages for predictable payments, adjustable-rate mortgages for potentially lower initial rates, and a few more specialized products like FHA and VA loans for specific buyer needs. Its Affordable Loan Solution offers a path to homeownership with a 3% down payment, and for eligible veterans and service members, VA loans come with no down payment required.

    You can reach Bank of America customer service from 8 am to 10 pm ET on weekdays and until 6:30 pm ET on Saturdays through multiple support channels including phone, virtual and in-person meetings. It stands out with assistance programs for homeowners like America’s Home Grant® and Down Payment Grant, aiding eligible buyers in covering costs. Remember that credit score requirements vary by loan type, so it's advisable to discuss your financial situation with Bank of America directly to discover which options you may qualify for based on your credit.

    Pros

    • Unique mortgage products
    • Client Assistance Program
    • Grant programs available

    Cons

    • No prequalification without online profile
    • Minimum credit requirements not disclosed
    Bank of America

  • Lower.com
    • 5Number of Mortgage Options
    • YesOnline Application
    • A+BBB Rating
    • Monday to Friday, 9 am to 5 pm ETCustomer Service Hours

    Lower is available for borrowers exclusively through an online platform. It offers a range of mortgage options including conventional and FHA loans. If you’re considering these options, you’ll need a minimum credit score of 580 to qualify. The down payment requirement is not disclosed, so you'll need to contact Lower directly for this information.

    Lower ensures clients can reach out for assistance with customer service hours extending from 9 am to 5 pm ET, Monday to Friday, via phone or text. Apart from being accessible, it stands out as the top home equity line of credit (HELOC) lender for most states, per MoneyGeek's findings. In addition, it presents a unique program known as "Buy Before You Sell," helping homeowners to purchase a new property before selling their current one.

    Pros

    • Online prequalification available
    • Buy Before You Sell program offered
    • A+ BBB-accredited business

    Cons

    • No unique mortgage choices
    • Expert advisor call needed
    • No in-person support
    Lower.com

Mortgage Programs in Minnesota

Owning a home brings with it hidden costs of homeownership that can impact your budget. In Minnesota, you can tap into resources like Minnesota Housing, which provides mortgage programs designed to assist you in navigating the complexities of buying a home.

Program
Content

Start Up

The Start Up program caters to individuals embarking on homeownership for the first time in three years. It offers income limits up to $142,800 and maximum house prices of $515,200 in some areas. Loans for down payments and closing costs go up to $18,000. Before you can land one of Minnesota's competitive mortgage rates, you must finish a homebuyer education course.

Step Up

Step Up has higher income thresholds than Start Up, reaching $185,700 and equal house price limits. Up to $18,000 is available for down payments and closing costs. If all borrowers are new to owning, an education course is required, and refinancing is an option, giving you access to a range of mortgage rates.

Downpayment and Closing Cost Loans

Qualifying for Start Up or Step Up unlocks additional loans for down payments and closing costs. You can get loans up to $18,000 with an equal interest rate to your primary mortgage over a 10-year term or up to $16,500 as a deferred payment, due when your mortgage ends. These loans provide useful support while you're navigating your mortgage options in Minnesota.

FAQ: Mortgage Rates in Minnesota

Today's mortgage rates in Minnesota can impact your home-buying decision. We've addressed commonly asked questions to help you stay informed about your mortgage options.

What are the current mortgage rates in Minnesota?
How do mortgage rates in Minnesota compare to national rates?
How does my credit score impact the mortgage rates I get in Minnesota?
Are there any special mortgage programs in Minnesota to help homebuyers?
How can I get the best possible mortgage rate in Minnesota?
What are today's mortgage refinance rates in Minnesota?
How do I calculate my mortgage payments?

About Zachary Romeo

Zachary Romeo headshot

Zachary Romeo is the Head of Loans and Banking at MoneyGeek, with over 10 years of experience and forthcoming certification as a Commercial Banking and Credit Analyst (CBCA). Previously, he led production teams for some of the largest online informational resources in higher education.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt through people-first content.

sources
  • Minnesota Housing. "Buy a Home." Accessed July 16, 2024.
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