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Minnesota Mortgage Calculator (2026)

Calculate your monthly mortgage payment in Minnesota including principal, interest, and Minnesota's average property tax rate of 1.12%.

Minnesota Property Tax Note: Minnesota's average property tax rate of 1.12% is near the national average. Minnesota has a complex property tax system with classification rates varying by property type. The homestead credit refund provides relief for lower and middle-income homeowners who pay disproportionate property taxes. Minneapolis and St. Paul metro area housing is moderately priced compared to coastal cities.

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Minnesota average: 1.12%

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Minnesota Monthly Payment

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Median Minnesota home ($335,000) — 20% down — 7% rate — 30yr

ComponentMonthlyAnnual
Principal & Interest$1,783.01$21,396
Property Tax (1.12%)$312.67$3,752
Homeowners Insurance$150.00$1,800
Total PITI$2,245.68$26,948

Total interest over 30yr: $373,884. PMI not included.

Minnesota Mortgage Math: Property Tax, Insurance, and PITI

Your Minnesota mortgage payment has four components — the PITI breakdown: Principal, Interest, Taxes, and Insurance. Principal and interest are determined by your loan amount, rate, and term. Property tax and homeowners insurance are usually escrowed monthly. In Minnesota, the average effective property tax rate is 1.12% — near the US average of 1.10%.

On the median Minnesota home ($335,000), the property tax line alone runs roughly $3,752 annually — about $313 per month before factoring in any local supplemental levies. Homeowners insurance typically adds $1,200–$2,400/year depending on coverage and risk profile, with hurricane/wildfire-prone areas paying more.

Minnesota Home Prices in National Context

The median home price in Minnesota is $335,000, 20.1% below the US median of $419,200. Relative to Minnesota's median household income of $77,706, the median home costs about 4.3× annual income — a useful affordability benchmark. Home-price-to-income ratios above 5× typically signal a stretched market; below 3× indicates affordability headroom.

Minnesota's average property tax rate of 1.12% is near the national average. Minnesota has a complex property tax system with classification rates varying by property type. The homestead credit refund provides relief for lower and middle-income homeowners who pay disproportionate property taxes. Minneapolis and St. Paul metro area housing is moderately priced compared to coastal cities. Local variation within Minnesota can be substantial — coastal/metro counties typically run well above the state median, while inland and rural counties can sit far below. Use the calculator above with your specific target price, and verify the property tax line by looking up the assessed value and millage rate for your target county.

Affordability Math: How Much Home Can You Actually Carry?

Conventional underwriting caps total housing costs at 28% of gross monthly income (the "front-end" ratio) and total debt at 36%–43% (the "back-end" ratio). On the Minnesota median household income of $77,706, that's a maximum housing budget of about $1,813 per month. With Minnesota's higher-than-average property taxes, that budget supports a mortgage in the range of $194,265–$271,971 at current 30-year fixed rates.

The 20% down payment is a useful benchmark — it eliminates private mortgage insurance (PMI) and signals creditworthiness — but isn't required. FHA loans accept 3.5% down with a credit score of 580+; VA loans (eligible veterans) and USDA loans (rural areas) can offer 0% down. Each path has tradeoffs in upfront fees, ongoing insurance, and rate competitiveness; run the math both ways before committing.

Closing Costs and Ongoing Ownership Costs in Minnesota

Beyond the down payment, budget 2%–5% of the loan amount for closing costs: lender origination fees, title insurance, appraisal, recording fees, prepaid taxes and insurance, and (in some states) transfer taxes. On a $268,000 loan, that's roughly $8,040–$13,400 due at closing. Some sellers will credit closing costs in soft markets — always ask.

Plan for ongoing maintenance reserves of 1%–2% of home value annually — about $5,025/year on the Minnesota median home. HOA dues (if applicable), utilities, and major capital expenses (roof, HVAC, hot water heater) accumulate. The all-in cost of homeownership in Minnesota typically runs 1.3×–1.5× the mortgage payment alone once tax, insurance, maintenance, and major repairs are included over a typical holding period.