Mortgage Calculator in Minnesota

Calculate your monthly mortgage payment in Minnesota using the 2026 median home price of $354K and current local rates. Adjust the inputs below. Formula shown, sources cited — no account required.

Minnesota's housing market sits in a middle band — not as affordable as its rural neighbors, not as expensive as coastal metros. The median home price of $354,000 reflects strong demand in the Twin Cities corridor and the scarcity of walkable, transit-served neighborhoods. Property taxes average 1.12%, adding about $3,965 per year on a median-priced home, and closing costs run a lean 1.8%, roughly $6,372 upfront. First-time buyers have two dedicated state programs to explore: the Start Up Program for those who have never owned a home, and the Step Up Program for repeat buyers who need to move up in price. Both are administered by Minnesota Housing and offer below-market rates and down payment assistance. A 10% down payment on a $354,000 home means saving $35,400, which is achievable for households at median income but typically requires two to three years of focused saving. The Twin Cities market — particularly Minneapolis, St. Paul, and suburban Hennepin County — leans competitive, with multiple offers common on well-priced homes. Use the mortgage calculator to model how today's 6.51% rates affect your monthly payment at Minnesota price levels.

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Minnesota's average mortgage rate of 6.51% and median home price of $354K produce a monthly P&I of approximately $2,016 before taxes and insurance.

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Minnesota Housing Market at a Glance (2026)

$354K

Median Home Price

6.51%

Avg Mortgage Rate

1.12%

Property Tax Rate

10%

Typical Down Payment

Buying a Home in Minnesota: Costs to Know

Average closing costs1.8% of purchase price

On a $354K home, closing costs â‰ˆ$6,372

Median household income$87,117/yr

State income tax (top rate)9.85%

First-Time Buyer Programs in Minnesota

Minnesota offers state-sponsored programs that can reduce your down payment or closing costs:

✓Start Up Program
✓Step Up Program

How Mortgage Payments Work in Minnesota

A standard mortgage payment in Minnesota is calculated using the amortization formula:M = P[r(1+r)^n] / [(1+r)^n - 1]

Where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. On a $354K home in Minnesota with a 10% down payment at 6.51% over 30 years, your principal and interest payment comes to approximately $2,016/month— not including property taxes or homeowner's insurance.

Minnesota's property tax rate of 1.12% adds roughly $330/month to your total housing cost on a $354K home. This rate is near the national average of ~1.1%.

Minnesota vs. National Average

Metric	Minnesota	National Avg
Median Home Price	$354,000	$420,000
Property Tax Rate	1.12%	1.07%
Avg Mortgage Rate	6.51%	6.85%
Cost of Living Index	93.6	100

Questions You Might Ask — Mortgage Calculator in Minnesota

What is the average mortgage payment in Minnesota?

Based on the median home price of $354K in Minnesota with a 10% down payment and 6.51% rate (30-year fixed), the estimated monthly principal and interest payment is approximately $2,016. Adding property taxes (~$330/mo) and homeowner's insurance, total PITI is typically $2,496–$2,596/month.

What is the property tax rate in Minnesota?

Minnesota has an average effective property tax rate of 1.12%. On the median home price of $354K, that equals roughly $3,965 per year — or $330 added to your monthly mortgage payment. This is near the national average of ~1.1%.

How much down payment do I need to buy a home in Minnesota?

The typical down payment in Minnesota is 10% — about $35,400 on the median $354K home. Conventional loans require as little as 3% down; FHA loans allow 3.5%. First-time buyers may also qualify for assistance through programs like Start Up Program.

What are closing costs in Minnesota?

Average closing costs in Minnesota are approximately 1.8% of the purchase price — about $6,372 on the median $354K home. Closing costs include lender origination fees, title insurance, escrow, prepaid interest, and government recording fees.

What income do I need to afford the median home in Minnesota?

To afford the $354K median home in Minnesota under the 28% housing-cost rule, you need a gross monthly income of at least $8,914 — roughly $107K/year. The median household income in Minnesota is $87,117.

Data Sources & Methodology

State data sourced from the National Association of Realtors (median home prices), Tax Foundation (property tax rates, income tax), Freddie Mac PMMS (mortgage rates), ATTOM Data Solutions (closing costs), and U.S. Census Bureau ACS (household income). Last updated 2026.