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Minnesota Mortgage Rates

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Minnesota Mortgage Rates

Comparing Minnesota Mortgage Rates with National Rates

In order to help you see how Minnesota mortgage rates compare with National rates, check out the following rate table from the industry website mortgagenewsdaily.com. These rates represent national averages and are based on specific loan assumptions. 

Shopping for Best Mortgage Rates in Minnesota 

It is important to shop around for the best terms. Make sure that you compare rates, lender fees and learn about third party fees. When comparing mortgage offers check out the term (length), interest rate (fixed vs. variable), and if applicable the cost of mortgage insurance. Get more information about mortgage rates and mortgage fees. Also, FHA loans, which always require mortgage insurance, differ from conventional loans, which require Private Mortgage Insurance (PMI) if your loan to value ratio (LTV) is over 80%.  Make sure that you use all of your costs when comparing loans.

Qualifying for a Mortgage in Minnesota

In order to qualify for the best mortgage rates in Minnesota it is important to have an excellent credit score. Also, you want to make sure that your debt to income ratio (DTI) and your downpayment or equity position , your loan to value ratio (LTV) are sufficient to qualify. Read this Bills.com article about qualifying for a mortgage.

Mortgage Resources for Minnesota

Minnesota is the twenty second most populous US state. According to the US census, as of 2017, there is an estimated population of over 5.5 million residents, which represents 1.7% of the US population. According to Fortune, in 2017 18 of the top 500 companies in the US are located in Minnesota, including Target, Best Buy,General Mills, and US Bancorp.

Based on 2015 HMDA data, Minnesota as compared to National loan program distribution, had a higher percentage of conventional loans (74% vs 69%) and a smaller share of both FHA loans (17% vs 20%) and VA loans (6% vs 10%).

Here are some outside resources that can help you understand the Minnesota mortgage environment:

  1. FHA loan amounts in Minnesota: (note:set the table to Minnesota) There are 87 counties in the state of Minnesota of which none of the single family units meet the Highest loan limit, currently at $636,150. 83% of the counties are at the Standard loan limit, currently at $275,665. The remaining 17% are between those two limits.
  2. FHFA Conventional Loan Amounts: Check the pdf from FHFA for all states and search for Minnesota and your county or check out the FHFA conforming limit map. Since the FHFA has higher base limits than the FHA, currently at $424,100, all of the counties fit this category.
  3. Minnesota First Home Buyer Programs: The Minnesota Housing is the state’s housing finance agency that strives to provide affordable housing. They have a number of programs including, Start Up for First-Time Homebuyers, Step Up for Repeat Homebuyers or Refinancing, Mortgage Credit Certificate Program for First-Time Homebuyers, and Downpayment and Closing Cost Loans (monthly payment and deferred payment). Their website links to a non-profit organization, the Minnesota Homeownership Center, that provides information about all homeownership and down payment assistance.
  4. Many programs require a homebuyer education class. For more information regarding programs in Minnesota, check out the Hud’s website. 

Mortgage Trends and Statistics for Minnesota

Mortgage rates, loan amounts, LTV, (etc) vary based on areas. The FHFA provides a useful insight into differences in conventional loans. based on Metropolitan Areas.

Source of Data: FHFA Historical Table  - (TERMS ON CONVENTIONAL HOME MORTGAGES) Table V - Averages for Major Metropolitan Areas: Loans Closed

Check out some differences in One MSA area in Minnesota:

  • Mortgage Rates for Conventional Loans in One MSA in Minnesota
  • Mortgage Fees in One MSA in Minnesota
  • Loan Amount in Minnesota for One MSA
  • LTV over 90% in One MSA in Minnesota

 

Mortgage Rates for Conventional Loans in One MSA in Minnesota

 

Mortgage Fees in One MSA in Minnesota

 

Loan Amount in Minnesota for One MSA

 

LTV over 90% in One MSA in Minnesota for One MSA

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