Current Minnesota Mortgage and Refinance Rates

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Current 30-year fixed mortgage rates are averaging: 7.28%

Current 15-year fixed mortgage rates are averaging: 6.77%

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners on the previous day 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.

Compare MN mortgage rates today

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Refinance rates in Minnesota

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 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.

Current 30-year fixed mortgage refinance rates are averaging: 7.45%

The current average rate for a 15-year fixed mortgage refinance is: 6.87%

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners on the previous day 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.

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

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 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.

2024 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

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Learn about different types of MN mortgage loans

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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