Current Minnesota Mortgage and Refinance Rates
Mortgage interest rates currently average 6.06% for 30-year fixed loans and 5.22% for 15-year fixed loans.
Refinance rates in Minnesota
30-year FIXED
Current refinance rates are averaging:
6.48%
15-year FIXED
Current refinance rates are averaging:
6.06%
If you want to refinance your home loan in Minnesota, there are several options at your disposal, including:
- Rate-and-term refinances. As the name suggests, a rate-and-term refinance offers you the chance to secure a new interest rate, choose a new loan term or accomplish both. This can help you lower your monthly payment or pay off your mortgage faster, depending on the route you choose. However, be aware that refinance rates can be higher than purchase mortgage rates.
- Cash-out refinances. Cash-out refinances allow you to borrow more money than you owe by leveraging some of your existing home equity. Cash-out refinance rates are also typically higher than purchase rates, but this method can be a smart way to finance large expenses, like home improvements or educational expenses.
- Conventional refinances Conventional refinances aren’t insured by any particular government program. These loans typically have refinance rates that are higher than those for government-backed loans.
- FHA refinances. Offered by the Federal Housing Administration (FHA), FHA refinances are typically easier to qualify for than conventional refinances. They may also come with lower FHA refinance rates. However, in exchange, you may find that there are a few more hoops to jump through during the underwriting process, such as stricter appraisal guidelines.
- VA refinances. Eligible military borrowers may qualify for some of the lowest rates available through a VA refinance. In some cases, VA rates can be almost one percentage point lower than their conventional counterparts.
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast?
LendingTree’s mortgage rate forecast has rates currently remaining around 6.0% in early 2026. Even after three rate cuts by the Federal Reserve in late 2025, experts still predict rates will not fall below 6% in the near future.
How do I get the best mortgage rate for my Minnesota home loan?
There are quite a few different factors involved in determining mortgage rates and, unfortunately, not all of them are within your control as a borrower. However, there are some things you can do to make sure you receive the best mortgage rate possible, including:
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Improving your credit score
In general, the higher your credit score, the lower the interest rate you’ll receive. With that in mind, making an effort to boost your score before you apply for a loan can lead to savings. -
Lowering your debt-to-income (DTI) ratio
Your DTI ratio measures your total monthly income versus all of your recurring monthly debts. It helps lenders predict how well you’ll be able to keep up with your mortgage payments. You can improve your ratio in one of two ways: by increasing your income or by paying down your debts. -
Buying a single-family home
As a rule of thumb, single-family homebuyers receive lower mortgage rates than those who buy manufactured homes, multifamily homes, vacation homes or investment properties. -
Investing in mortgage points
Buying mortgage points typically allows you to reduce your rate by up to 0.25 percentage points. In this case, you’re shrinking your total interest charges by agreeing to pay an additional fee upfront. -
Shopping around for a home loan
Since interest rates are individually determined, getting loan estimates from multiple lenders can help lower your rate. LendingTree data shows that shopping around can save you thousands of dollars over the life of the loan.
Read more about our picks for the best mortgage lenders.
After you apply for a mortgage and get approved, the next step is to ask your lender about a rate lock. As you might be able to guess, a mortgage rate lock ensures that your interest rate stays the same until your scheduled closing date.
Minnesota home loan programs
Coming up with the funds to cover a down payment and closing costs can be a huge barrier for many Minnesotans. However, fortunately for MN first-time homebuyers and repeat buyers alike, the state offers several home loan programs to help with these costs.
Here are three worth considering:
Start Up Program
Minnesota Housing offers the Start Up program for first-time homebuyers. The program combines a 30-year fixed-rate home loan with down payment assistance (DPA) worth up to $18,000.
Who qualifies
Eligible borrowers must:
- Qualify as a first-time homebuyer by not having owned a home within the last three years
- Meet certain income and purchase price limits
- Complete a homebuyer education program
Step Up Program
Repeat homebuyers, as well as first-time homebuyers who don’t meet the income or purchase price limits set by the Start Up program, may benefit from Minnesota Housing’s Step Up program. This program also combines a 30-year or 15-year fixed-rate home loan with down payment assistance options worth up to $18,000.
Who qualifies
Eligible borrowers must:
- Meet certain income and purchase price limits
- Live in the house as your primary residence
- Complete a homebuyer education course
Monthly payment DPA loan
Minnesota Housing’s monthly payment DPA loan can be used in conjunction with either of the mortgage programs above. This loan is worth up to $18,000 for down payment and closing cost assistance and must be repaid with interest over the course of 10 years.
Who qualifies
Eligible borrowers must:
- Be enrolled in the Start Up or Step Up loan program
- Meet your program’s income limits
Learn about different types of MN mortgage loans
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Minnesota conventional loans
If you have a decent credit score, you may want to consider applying for a conventional loan. These loans are typically thought of as the most desirable mortgages, because they meet the minimum qualifying requirements set by Fannie Mae and Freddie Mac. -
Minnesota FHA loans
For their part, FHA requirements are often slightly more forgiving than the requirements for conventional loans. If you have a minimum 580 credit score, you only need to make a 3.5% down payment to qualify. That said, your score can be as low as 500, provided you can make a 10% down payment. -
Minnesota VA loans
Eligible military borrowers in Minnesota will likely want to shop for VA loans. As a rule, these loans don’t require a down payment or monthly mortgage insurance. However, individual lenders may set their own eligibility criteria. -
Minnesota streamline refinances
Those hoping to refinance an existing FHA or VA can do so through a streamlined application process. Both the FHA streamline refinance and VA interest rate reduction refinance loan (IRRRL) programs give eligible homeowners the opportunity to refinance their mortgages while meeting fewer requirements and completing less paperwork (however, you will need to refi to the same loan type you began with).