Minnesota offers a balanced housing market with a statewide median home price near $358,000, a diverse economy anchored by Target, UnitedHealth Group, 3M, General Mills, and the Mayo Clinic, and strong quality of life indicators including top-ranked schools and healthcare. The Twin Cities metro — Minneapolis and St. Paul — drives most of the state's real estate activity. Minnesota's property tax rate of 1.12% is slightly above the national average, but the state's high household incomes generally support manageable debt-to-income ratios.
Calculate Your Monthly Payment
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Select a program to apply FHA/VA/USDA rules.
Funding fee is often financed into the loan.
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20.0% of home price
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Used to estimate potential Year‑2 escrow shock if taxes reset after purchase.
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Used for Conventional PMI estimates and FHA minimum down rules
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Extra payments reduce balance faster and can end PMI sooner.
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Principal & Interest • Tax • Insurance • PMI • HOA
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Note: This is an estimate. Tax timing, exemptions, and escrow rules vary by county and lender. Always verify with your county assessor and your lender’s escrow analysis.
Extra Payment Savings
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Disclaimer: Results shown are estimates for educational purposes only and do not constitute financial, tax, legal, or investment advice. Actual payments vary based on lender, credit score, loan type, and local assessments. Consult a licensed mortgage professional for your specific situation.
Minnesota Mortgage Calculator Guide
Buying a home in Minnesota requires understanding local costs. The median home price in the state sits around $358,000, which means your down payment and loan amount will heavily dictate your monthly expenses. Because Minnesota has an average property tax rate of 1.12%, factoring this into your monthly mortgage payment is essential for an accurate budget.
Beyond principal and interest, homeowners insurance in Minnesota averages $1,900 per year. Local weather risks and property age can push this number higher. By using our pre-loaded local averages, you get a realistic view of your true housing costs rather than just a basic principal calculation.
If you put down less than 20%, you will also need to pay Private Mortgage Insurance (PMI). Adjust the down payment field above to see exactly how your PMI drops off once you reach that 20% equity threshold in Minnesota.
Minnesota's average property tax rate of 1.12% is just above the national average of 1.07%. Minnesota uses a complex property tax system with different class rates for different property types — residential homesteads receive favorable treatment compared to non-homestead properties. The state offers a Property Tax Refund program that provides refunds to homeowners whose property taxes exceed a threshold percentage of their income, offering relief for qualifying households. On a $358,000 home, annual property taxes average approximately $4,010.
Frequently Asked Questions
Minnesota's average property tax rate is 1.12%, just above the national average of 1.07%. Residential homesteads receive favorable class rate treatment. The state's Property Tax Refund program provides refunds to qualifying households whose taxes exceed a threshold of their income. On a $358,000 home, annual taxes average approximately $4,010.
Minnesota's statewide median home price is approximately $358,000. Minneapolis averages around $340,000, St. Paul near $295,000, and Rochester approximately $320,000. The western Twin Cities suburbs trend higher. Rural Minnesota offers significantly more affordable options.
Minnesota Housing offers the Start Up program for first-time buyers with competitive 30-year fixed-rate mortgages and down payment assistance through the Monthly Payment Loan or Deferred Payment Loan programs. The Step Up program is available for repeat buyers. Income and purchase price limits apply, and buyers must complete a homebuyer education course.
Yes. Minneapolis-St. Paul offers a strong combination of employment diversity, cultural amenities, and relative affordability compared to coastal metros. The market is competitive — homes in desirable neighborhoods receive multiple offers — but prices remain substantially below comparable cities on the coasts. The state's Fortune 500 employer concentration provides solid economic stability.
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