If you want to refinance your home loan in Minnesota, there are several options at your disposal, including:
Current 30 year-fixed mortgage refinance rates are averaging: 7.15% Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
The current average rate for a 15-year fixed mortgage refinance is: 6.58% Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast for 2024?Borrowers in the North Star State will want to know that LendingTree’s mortgage rate forecast has rates currently trending downward. After hitting a peak well above 7% in October 2023, rates started to fall — ending the year more than a full percentage point lower — and that momentum has largely continued. Our 2024 housing market predictions hold that rates will likely continue to drop throughout the year, mainly due to anticipated rate cuts from the Federal Reserve.
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:
Read more about our picks for the best mortgage lenders.
When should I lock in my mortgage rate?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.
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:
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
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
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
→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).
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