Minnesota Mortgage and Refinance Rates

Current mortgage rates in Minnesota

As of Monday, April 14, 2025, current mortgage rates in Minnesota are 6.76% for a 30-year fixed mortgage and 6.10% for a 15-year fixed mortgage.

Mortgage rates in Minnesota — and around the U.S. — have remained above 6 percent, and often above 7 percent, for most of the last two years. Although three consecutive rate cuts by the Federal Reserve in late 2024 didn’t move rates much, they have begun to decrease recently, due to economic uncertainty. These days, average mortgage rates generally fall between 6 and 7 percent. Many experts expect this trend to continue, with averages decreasing modestly — though remaining above 6 percent — for the rest of 2025 and into 2026.

Refinance rates in Minnesota

Mortgage refinance rates have more than doubled in Minnesota and throughout the U.S. since they bottomed out during the pandemic. If you refinanced your mortgage during that time, it’s unlikely you’ll want to do so again anytime soon. Although refinance rates, like mortgage rates, have pulled back a bit, they still average between 6 and 7 percent for both 30-year and 15-year refinance terms. That’s a far cry from the sub-4 percent rates many homeowners are paying. 

That said, home values have also risen rapidly in many parts of the country. According to a recent report from ICE Mortgage Technology, the average homeowner with a mortgage can borrow against approximately $203,000 in equity. While refinancing may not get you a lower rate, a cash-out refinance could be a way to fund larger expenses more cheaply than other forms of borrowing. 

National mortgage rates by loan type

Minnesota housing market statistics and trends

Here are some statistics about mortgages and the housing market in The Land of 10,000 Lakes:

• Median home sales price, Feb. 2025: $340,000
• Median home value, Feb. 2025: $340,500
• Median down payment, Jan. 2025: $42,537
• Percentage of homes sold above list price, Feb. 2025: 26.8%
• Percentage of homes with price drops, Feb. 2025: 20.4%
• Homeownership rate, Q4 2024: 70.8%

Sources: ATTOM, Redfin, U.S. Census Bureau

Mortgage options in Minnesota

If you want to make Minnesota your home, you have several mortgage options to choose from — each with their own qualifying criteria:

• Minnesota conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums as well.
• Minnesota FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a credit score of at least 580, you could qualify for an FHA loan with a down payment as low as 3.5 percent.
• Minnesota VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t typically require a down payment, and you won’t have to pay for mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 3.3 percent of the loan amount.

First-time homebuyer programs in Minnesota

Minnesota Housing, the state’s housing finance agency, can help make buying a home more affordable. Here’s an overview of their programs:

• Minnesota Housing Start Up: This program for first-time homebuyers offers competitive rates on mortgages and reduced costs on PMI. To qualify, you must meet income and purchase price limits.
• Minnesota Housing Monthly Payment Loan: If you qualify for Start Up or another Minnesota Housing loan, you might be eligible for up to $18,000 toward your down payment or closing costs. The assistance is a loan with a 10-year repayment term and a rate equal to your primary mortgage rate.
• Minnesota Housing Deferred Payment Loans: These loan options, which are also intended to fund down payment and closing costs, come with zero interest and no monthly payments. However, you’ll have a large balloon payment due at the end of the loan term. 

How to find the best mortgage rate in Minnesota for you

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or apply for a loan, give your finances a check-up. If your credit score needs work, you’ll have time to improve it.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages. Your budget and your financial situation will help determine which works best for you.
• Step 4: Research Minnesota mortgage lenders - Read up on mortgage lenders in the state to find out which has the services and convenience you need.
• Step 5: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies to find the best Minnesota mortgage rates.
• Step 6: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Additional Minnesota mortgage resources

• Minnesota loan limits by county: Learn the conforming loan limit for your city or town.
• Minnesota homeowners insurance: Shop homeowners insurance policies to find the right one for your home.
• How to buy a house in Minnesota: Learn the latest info on buying a home in Minnesota.
• Minnesota housing market: Check out everything you need to know about the housing market in Minnesota.

Meet our Bankrate experts

Written by: Andrew Dehan, Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Read more from Andrew Dehan

Edited by: Alice Holbrook, Editor, Home Lending

I have been a writer and editor in the personal finance space for more than a decade, with more than three of those focused on homebuying and homeownership. I’ve had work appear in outlets including Newsweek, The Washington Post, The Associated Press, USA Today and MarketWatch.

Read more from Alice Holbrook