Getting the Best Mortgage Rates in Minnesota (10-15-30-Year Fixed, 5/1, 7/1 ARM)

Minnesota home values are on the rise, a trend which is predicted to continue throughout the next year.

According to Zillow, the median home value is currently 210,800, marking an increase of 7.7 percent since 2016.

Experts predict that home values will continue to rise by over 2 percent in 2018, which may be challenging for potential homeowners hoping to get competitive mortgage rates in Minnesota. 

With rising home values, new homeowners will be looking at paying higher prices within the next few years, which makes finding manageable MN mortgage rates and flexible mortgage lenders in Minnesota crucial elements of ensuring that homeownership remains affordable over the long-term.

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Which Minnesota City Are You Located in?

When it comes to finding the best Minnesota mortgage rates, there are plenty of factors to consider. For many Minnesota mortgage lenders, the location of the home will play a large role in what type of mortgage rates are available.

This means that homes in Minneapolis, St. Paul, Rochester, Duluth, Bloomington, Brooklyn Park, Plymouth, and other cities could have varying Minnesota mortgage rates based on the individual city, neighborhood, and the condition of the home itself.

While searching for the best MN mortgage rates, it may be worthwhile to explore whether a neighboring city offers a better Minnesota mortgage rate to make homeownership more affordable over the long run.

See the table below for a list of some of the largest cities in the state offering a wide range of Minnesota mortgage lenders. 

Top Minnesota CitiesPopulation (2016)
Minneapolis413,651
St. Paul302,398
Rochester114,011
Duluth86,293
Bloomington85,319
Brooklyn Park79,707
Plymouth77,216
Maple Grove69,576
Woodbury68,820
St. Cloud67,641

Source: Google


Hidden Costs of Purchasing a Home in Minnesota

While selecting from the mortgage rates in Minnesota, you’ll also want to consider the additional costs that come within the first stages of homeownership.

Before you even start the MN mortgage rate confirmation process, you’ll want to consider the following costs:

  • Mortgage application fees (typically 1-2 percent of the total purchase price)
  • “Good faith deposit” (helps the seller know that you intend to buy)
  • Down payment (20 percent of the total mortgage)

Along with Minnesota mortgage rates, there are also closing costs to consider, which can include:

  • Mortgage points
  • Attorney’s fees
  • Inspections or surveys
  • Title insurance
  • Escrow deposit
  • City recording fees

Luckily, Minnesota residents are much better off than the rest of the country when it comes to the closing costs associated with obtaining a great MN mortgage rate.

According to Investopedia, the average closing costs for Minnesota mortgages come to $1,757. Compared to the nation average of $1,847, the closing costs for a Minnesota mortgage are about 5 percent less.

Here’s a quick breakdown of the fees and costs typically required by Minnesota mortgage lenders:

  • $429—Property appraisal
  • $375—Settlement fees
  • $350—Survey
  • $125—Home inspection
  • $80—Document preparation
  • $76—Tax services
  • $50—Courier and postage services
  • $21—Credit report
  • $10—Flood certification

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Key Requirements for Buying a House in Minnesota

Before you apply for a Minnesota mortgage rate, you’ll want to complete the below list of requirements.

  • Get your down payment ready (~20% of the loan amount)
  • Maintain good to excellent credit
  • Save some extra funds for your closing cost (there might be additional expenses that you’ll need to pay)
  • Maintain a low debt balance
  • Demonstrate sufficient income
  • Gather your financial documents
  • Get a home appraisal on the home

You will also want to weigh your options between Minnesota mortgage rates to make sure that you are getting the best mortgage rates in Minnesota.

This means comparing current mortgage rates in Minnesota for conventional mortgage loans (10, 15, 20, or 30-year increments) or an adjustable rate mortgage (5/1, 3/1, 7/1 ARM).

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Conclusion – Finding a Top Mortgage Loan for a Home in Minnesota

When searching for competitive MN mortgage rates, there are a few additional pieces of information to keep in mind.

If you have a good, great, or excellent credit history and you are seeking a Minnesota mortgage rate for a loan totaling over $424,100, some Minnesota mortgage lenders may be able to provide different terms.

For this reason, it’s important to confirm any Minnesota mortgage rates and terms for specific amounts before making a commitment.

Additionally, it’s also important to keep in mind that APR and payment info does not necessarily include state-specific taxes or required insurance premiums.

As such, you should expect that your monthly Minnesota mortgage payments or Minnesota refinance rates will increase slightly once taxes and insurance products are included.

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