Minnesota Mortgage Calculator

Calculate your monthly mortgage payment in Minnesota. Average home price: $325,000 · Property tax rate: 1.08% · Median household income: $77,720.

Calculate Your Minnesota Mortgage Payment

Home Price ($)

Down Payment ($)

Interest Rate (%)

Loan Term (Years)

Property Tax Rate (%)

Annual Insurance ($)

HOA Monthly ($)

Loan Type

Minnesota Housing Market Overview

$325,000

Avg Home Price

1.08%

Property Tax Rate

$1,800

Annual Insurance

6.65%

Avg Mortgage Rate

The average home price in Minnesota is $325,000, with a property tax rate of 1.08%. With 20% down at 6.65%, your estimated monthly payment would be approximately $2,112/month including principal, interest, taxes, and insurance (PITI).

Minnesota's median household income is $77,720, making the average home roughly 4.2x the median annual income. Financial advisors generally recommend a home price no more than 3-4x your annual income.

How Mortgage Payments Work in Minnesota

Your monthly mortgage payment in Minnesota consists of four components (PITI):

Principal: The portion that reduces your loan balance. Starts small and grows over time.
Interest: The cost of borrowing. At 6.65%, you'll pay significant interest in the early years.
Taxes: Minnesota's property tax rate of 1.08% means approximately $292/month on the average home.
Insurance: Homeowners insurance in Minnesota averages $1,800/year ($150/month).

If your down payment is less than 20%, you'll also pay Private Mortgage Insurance (PMI), typically 0.5-1% of the loan annually. FHA loans require mortgage insurance for the life of the loan.

Tips for Minnesota Home Buyers

Get pre-approved: Know exactly how much you can afford before shopping in Minnesota.
Compare rates: Even a 0.25% rate difference saves thousands over 30 years on a $325,000 home.
Consider property taxes: Minnesota's 1.08% rate can vary significantly by county — research your target area.
Shop insurance: Minnesota homeowners insurance averages $1,800/year, but rates vary. Get 3-5 quotes.
Budget for closing costs: Expect 2-5% of the purchase price ($6,500-$16,250) in closing costs.
Build an emergency fund: Set aside 3-6 months of mortgage payments ($6,335-$12,670) for emergencies.

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Frequently Asked Questions

What is the average mortgage payment in Minnesota?

Based on the average home price of $325,000 with 20% down at 6.65%, the typical monthly payment in Minnesota is approximately $2,112, including principal, interest, property taxes (1.08%), and homeowners insurance ($1,800/year).

What is the property tax rate in Minnesota?

Minnesota's effective property tax rate is approximately 1.08%. On a $325,000 home, that's about $3,510/year or $292/month. Property tax rates can vary by county within Minnesota.

How much do I need for a down payment on a home in Minnesota?

For a conventional loan, 20% down on the average Minnesota home ($325,000) would be $65,000. FHA loans require as little as 3.5% ($11,375), and VA loans offer 0% down for eligible veterans. Lower down payments mean higher monthly payments and PMI.

What credit score do I need for a mortgage in Minnesota?

Conventional loans typically require 620+, FHA loans 580+ (for 3.5% down) or 500+ (for 10% down), and VA loans have no minimum but lenders typically prefer 620+. Higher scores get better rates — a 760+ score in Minnesota could save you 0.5-1% on your rate.

Should I get a 15-year or 30-year mortgage in Minnesota?

A 30-year mortgage offers lower monthly payments but more total interest. A 15-year mortgage has higher payments but saves significantly on interest. On a $260,000 loan at 6.65%, you'd save approximately $129,675 in total interest with a 15-year term.

How much house can I afford in Minnesota?

With Minnesota's median household income of $77,720, following the 28% rule (housing should be ≤28% of gross income), you could afford approximately $1,813/month for housing. That supports a home price of roughly $272,020-$310,880 depending on rates, taxes, and insurance.