Loan balance over time
| Total of 360 payments | $775,039 |
| Principal | $276,000 |
| Interest | $357,259 |
| Taxes | $105,570 |
| Insurance | $36,210 |
| HOA fees | $0 |
What these numbers come from
- Median home value
- $344,600
- Median tax bill
- $3,501
- Effective tax rate
- 1.02%
- Rank of 51
- 17th highest
Minnesota taxes property at about 1.02% of value against 0.89% nationally. On a $345,000 home that is $37 a month more than the same house would cost in taxes at the national rate. Rates are set by counties, cities and school districts, so your own bill will differ from the state median — put your actual figure in the property tax field and the payment updates.
Tax and home value figures: U.S. Census Bureau, American Community Survey 2024 1-year estimates. Insurance is estimated at 0.35% of home value per year — there is no comparable public per-state dataset, so treat it as a placeholder and replace it with your own quote. The interest rate is the national Freddie Mac 30-year average of 6.58%; this site does not publish state-level rate quotes.
Monthly cost across Minnesota home prices
20% down, 30-year fixed at 6.58%, with Minnesota property tax of 1.02% and estimated insurance.
| Home price | Loan | P&I | Tax/mo | Full payment |
|---|---|---|---|---|
| $207,000 | $165,600 | $1,055 | $176 | $1,292 |
| $276,000 | $220,800 | $1,407 | $235 | $1,722 |
| $345,000 median | $276,000 | $1,759 | $293 | $2,153 |
| $431,000 | $344,800 | $2,198 | $366 | $2,690 |
| $517,000 | $413,600 | $2,636 | $439 | $3,226 |
The gap between the P&I column and the last one is what a mortgage quote leaves out. In Minnesota taxes alone add $293 a month on a median-priced home.
Amortization schedule
| Date | Principal | Interest | Tax, Ins. & HOA | Balance |
|---|---|---|---|---|
| Aug | $246 | $1,513 | $394 | $275,754 |
| Sep | $247 | $1,512 | $394 | $275,507 |
| Oct | $248 | $1,511 | $394 | $275,259 |
| Nov | $250 | $1,509 | $394 | $275,009 |
| Dec | $251 | $1,508 | $394 | $274,758 |
| 2026 | $1,242 | $7,553 | $1,969 | $274,758 |
| Jan | $252 | $1,507 | $394 | $274,506 |
| Feb | $254 | $1,505 | $394 | $274,252 |
| Mar | $255 | $1,504 | $394 | $273,997 |
| Apr | $257 | $1,502 | $394 | $273,740 |
| May | $258 | $1,501 | $394 | $273,482 |
| Jun | $259 | $1,500 | $394 | $273,222 |
Refinancing in Minnesota
The arithmetic is the same everywhere: refinancing pays off when the monthly saving clears the closing costs before you sell or refinance again. What differs by state is the cost of getting there — recording fees, transfer and mortgage taxes, and whether an existing tax assessment survives the new loan.
Work the break-even with the refinance calculator, or check this week’s national average rates.
Minnesota home loans in detail
Minnesota Mortgage Overview
Minnesota is a beautiful and cultural state. With over 10,000 lakes in the state, there's plenty of outdoor recreation and beauty to go around. Minnesota has decent summers and very cold winters, but 5.6 million people love it, as that's the population in Minnesota.
If you're thinking of buying a home in Minnesota here are your loan options:
Minnesota FHA loans
Do you not have great credit? The Minnesota FHA loan is a great option for first-time and subsequent homebuyers. With just a 580 credit score and a 3.5 percent down payment, you can stop renting. FHA loans have flexible underwriting guidelines but require mortgage insurance for the life of the loan.
Minnesota VA loans
Veterans of the military have the distinct advantage of 100 percent financing from a VA loan. The flexible underwriting guidelines including a 620 credit score and 50 percent debt ratio make it easy for veterans to secure financing. VA loans don't have mortgage insurance, but they do have an upfront funding fee.
Minnesota USDA loans
If you don't mind living in the rural areas of Minnesota and you have at least a 640 credit score, the USDA loan may be a good option. Your household income must be less than 115 percent of the area's income, but you'll get 100 percent financing if you're eligible. USDA loans require mortgage insurance for the life of the loan.
Minnesota conventional loans
If you have great credit and a low debt ratio, a conventional loan may be a great option. It's the traditional loan most people think about when talking about a mortgage. First-time homebuyers need just 3 percent down and subsequent buyers need 5 percent. You'll pay PMI if you put less than 20 percent down, but you can cancel it once you owe less than 80 percent of the home's value.
First-Time Homebuyer Programs in Minnesota
Start-up for First-Time Homebuyers
If you've never owned a home or haven't owned one in the last 3 years the Start-Up Program may be a great option. You can get up to $17,000 down payment and closing cost assistance. The program needs just 3 percent down and there are options without mortgage insurance.
Down payment assistance
If you use the Start-Up Program, you may also be eligible for down payment assistance. The loan may be up to $17,000 and the rate will be the same as the rate on your first mortgage with a 10-year term.
Down payment Deferred Payment Loan
If you can't make monthly payments on the down payment assistance, you may apply for a deferred payment loan if your income qualifies. You won't owe any payments on the second loan until you sell the home or refinance.
Minnesota mortgage FAQ
- How much is property tax on a home in Minnesota?
- Minnesota homeowners pay an effective property tax rate of about 1.02 percent of home value — the 17th highest of the 50 states and DC. On the state's median home value of $344,600 that works out to roughly $3,519 a year, or $293 a month added to the mortgage payment. The figures come from the Census Bureau's American Community Survey 2024 1-year estimates; your own bill depends on the county and city rates where the home sits.
- What is the monthly payment on a median-priced Minnesota home?
- At $345,000 with 20 percent down and the current 6.58 percent national 30-year fixed average, principal and interest come to about $1,759 a month. Adding Minnesota property tax of roughly $293 a month and an estimated $101 of homeowner insurance brings the full payment to around $2,153.
- Which mortgage programs are available to Minnesota buyers?
- Options include FHA loans with a 580 credit score and 3.5 percent down, VA loans giving veterans 100 percent financing with a 620 score and up to a 50 percent debt ratio, USDA loans with zero down for rural households earning under 115 percent of area income, and conventional loans needing 3 percent down for first-time homebuyers or 5 percent for repeat buyers.
- How does Minnesota help first-time homebuyers?
- Minnesota's Start-Up Program serves buyers who haven't owned a home in the last three years, requiring just 3 percent down with options that skip mortgage insurance. Start-Up borrowers can add down payment and closing cost assistance as a 10-year loan at the same rate as the first mortgage, or a Deferred Payment Loan with nothing owed until they sell or refinance.
- What's the minimum down payment for a house in Minnesota?
- First-time homebuyers can put down as little as 3 percent on a conventional loan, and FHA borrowers need 3.5 percent with a 580 credit score. Eligible veterans and rural buyers can skip the down payment entirely through VA and USDA loans, while the Start-Up Program requires only 3 percent down with down payment assistance available on top.
Property tax in every state
Effective rate on owner-occupied value, highest bills first in each column.
- Alabama0.38%
- Alaska1.06%
- Arizona0.43%
- Arkansas0.52%
- California0.71%
- Colorado0.49%
- Connecticut1.66%
- Delaware0.47%
- District of Columbia0.63%
- Florida0.75%
- Georgia0.74%
- Hawaii0.27%
- Idaho0.43%
- Illinois1.92%
- Indiana0.74%
- Iowa1.29%
- Kansas1.25%
- Kentucky0.71%
- Louisiana0.53%
- Maine0.91%
- Maryland0.95%
- Massachusetts1.00%
- Michigan1.18%
- Mississippi0.65%
- Missouri0.79%
- Montana0.69%
- Nebraska1.42%
- Nevada0.47%
- New Hampshire1.46%
- New Jersey1.89%
- New Mexico0.63%
- New York1.45%
- North Carolina0.61%
- North Dakota0.96%
- Ohio1.22%
- Oklahoma0.75%
- Oregon0.78%
- Pennsylvania1.16%
- Rhode Island1.07%
- South Carolina0.45%
- South Dakota1.02%
- Tennessee0.45%
- Texas1.31%
- Utah0.49%
- Vermont1.42%
- Virginia0.71%
- Washington0.79%
- West Virginia0.52%
- Wisconsin1.25%
- Wyoming0.57%