Today's Mortgage Rates
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Minnesota home loans
Thinking of buying a home in the Land of 10,000 lakes? Then you'll want to take a close look at Minnesota mortgage rates to get the best deal possible.
Today's Minnesota mortgage rates are listed at the top of the page. But the rate a lender will offer you may be different. The rate you get will depend on the lender you choose and your characteristics as a borrower – your rate can vary depending on your credit score, down payment, loan type, whether you pay for discount points and more. The current mortgage rates you see listed for Minnesota and elsewhere are an average of what borrowers are paying.
You won't get the same mortgage interest rates from every lender – and the best lender for you may not have the best deal for someone else with a different borrower characteristics. One Minnesota lender may have the best rates on FHA loans, another may be a better option for someone with excellent credit and a large down payment, a third might be best for someone seeking a high-value jumbo loan, another may have the best rates and terms on home equity loans, etc.
Here's a look at different home loan options for Minnesota borrowers and how they affect the mortgage interest rates you might get.
Conforming loan mortgage rates
Conforming loans is the term used to refer to mortgages backed by Fannie Mae and Freddie Mac, which together account for the majority of home loans originated in Minnesota and the United States overall. They're called conforming loans because they must conform to the guidelines set by the two government-sponsored enterprises (GSEs), which include things like maximum loan amount, credit scores, mortgage rates, etc.
Conforming mortgages are offered through the vast majority of U.S. lenders. They offer low mortgage rates for Minnesota borrowers with good-to-excellent credit, though their rates get progressively higher for borrowers with lower credit scores. Down payments can be as little as 3 percent of the loan amount for borrowers with excellent credit, but a larger down payment can help you get a lower mortgage rate.
You can use the form at the top of the page to get personalized mortgage rate quotes from lenders licensed to do business in Minnesota.
Minnesota FHA loans
Another popular type of mortgage in Minnesota are FHA loans. These offer more lenient credit standards, allowing borrowers with weaker credit to get lower mortgage rates and make smaller down payments than they could with conforming loans. This makes them a popular choice for first-time homebuyers.
Mortgage rates on FHA loans in Minnesota are not closely tied to a borrower's credit score the way conforming loans are, making them a good deal for homebuyers with weaker credit. The FHA will allow home loans to borrowers with credit scores as low as 500, but most individual lenders have their own cutoff around 580-600, so you may have to look around to find a lender who will go lower than that.
While FHA loans offer attractive mortgage rates, that is somewhat offset by the cost of the upfront mortgage insurance premium borrowers must pay when they take out an FHA loan. That premium is 1.75 percent of the loan amount and can be financed as part of the loan. But for Minnesota borrowers with weaker credit scores, FHA mortgage rates can be attractive enough to offset that extra cost. There's also an annual mortgage insurance premium that is similar to the private mortgage insurance charged on conforming loans.
FHA loans offer the choice of either 30- or 15-year terms. Minnesota borrowers will find that 30-year mortgage rates loans are somewhat higher than 15-year mortgage rates, but offer lower monthly payments since you're taking longer to pay off the loan. While the monthly payments are higher, 15-year mortgages allow you to pay far less interest over the life of the loan since you're paying it off faster. Both 15- and 30-year FHA loans are available with either fixed or adjustable rates.
The form at the top of the page allows you to request mortgage rate quotes that are tailored to you personally from FHA lenders doing business in Minnesota.
VA home loans in Minnesota
Minnesota residents who are qualified veterans or members of the active duty military will likely want to look to VA loans as a mortgage option. VA loans have no maximum limit, but allow eligible individuals to borrow up to $453,100 with no down payment (2018 limit). Larger amounts are permitted with a down payment equal to 25 percent of the overage.
Mortgage rates on VA home loans in Minnesota are very competitive with those on conforming and FHA loans.
The VA itself has no minimum credit score requirement, but individual lenders set their own minimum scores for what they will accept for Minnesota VA home loans, with 620 being a common benchmark. Others may go lower, but you may have to search them out.
Jumbo loan rates
Jumbo loans are the name given to loans that exceed the lending limits on conforming mortgages. Because they cannot be guaranteed by Fannie Mae or Freddie Mac (or the FHA for that matter), they typically charge higher mortgage rates and require larger down payments than on conforming or FHA loans – 20 percent down is common. Higher credit scores are required as well, with many lenders demanding scores of at least 700 or above.
Home equity loan rates
Minnesota borrowers will find that home equity loan rates can be substantially lower than many other types of loans. That's because home equity loans are secured by your home equity, whereas unsecured loans like credit cards have nothing backing them other than your agreement to repay them.
Home equity loan rates do run higher than rates on a home loan used to buy or refinance a residence, because they are second liens. In the event of a default, they only get paid off after the primary mortgage has been fully paid. So the risk is higher for lenders, who charge higher rates as a result.
Home equity loans come in two types – a standard home equity loan and a home equity line of credit (HELOC). In a standard home equity loan, you borrow a sum of money and repay it according to a certain schedule. A HELOC sets up a line of credit you can borrow against as needed for 5-10 years before you have to begin paying it back.
Standard home equity loan rates for Minnesota borrowers can be either fixed or adjustable. HELOC rates are always adjustable during the draw period when you can borrow against it, but can often be converted to fixed rates once you enter the repayment phase.
For personalized home equity loan rates from Minnesota-licensed lenders, you can use the rate request form at the top of the page.