Minnesota Mortgage Calculator
Calculate your Minnesota mortgage payment with PMI, property tax, and closing costs.
Useful for home buyers in Minneapolis, St. Paul, Rochester, Duluth, Bloomington, and all of Minnesota.
Useful for home buyers in Minneapolis, St. Paul, Rochester, Duluth, Bloomington, and all of Minnesota.
Why use a Minnesota Mortgage Calculator?
Minnesota offers a homestead classification for owner-occupied properties that reduces property taxes. This calculator estimates your payment, PMI, property tax, and closing costs with homestead benefits.
Minnesota offers a homestead classification for owner-occupied properties that reduces property taxes. This calculator estimates your payment, PMI, property tax, and closing costs with homestead benefits.
Result
Enter your details to see the estimated payment here.
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Minnesota Property Tax: The average effective property tax rate is about 1.08%, but homestead properties receive a value exclusion that can reduce property taxes. Minnesota also has mortgage and deed taxes that total about 0.33% of the mortgage amount.
Average Home Prices in Major Minnesota Cities (2024)
| City | Detached | Semi-Detached | Townhouse | Condo |
|---|---|---|---|---|
| Minneapolis | $375,000 | $325,000 | $285,000 | $250,000 |
| St. Paul | $325,000 | $290,000 | $260,000 | $225,000 |
| Rochester | $310,000 | $275,000 | $240,000 | $200,000 |
| Duluth | $250,000 | $220,000 | $195,000 | $175,000 |
| Bloomington | $395,000 | $350,000 | $310,000 | $265,000 |
Note: Prices are approximate averages for 2024 and may vary by neighborhood and property features.
How Mortgage Rules Work in Minnesota
- Property Tax: Minnesota's average effective property tax rate is about 1.08%, with rates varying by county and city. Owner-occupied homes qualify for homestead classification, which provides tax benefits.
- Homestead Exclusion: For homestead properties valued under $413,800, a portion of the value is excluded from taxation (up to $30,400), reducing property taxes significantly for many homeowners.
- Mortgage Registry Tax: Minnesota charges a mortgage registry tax of 0.23% of the mortgage amount.
- Deed Tax: The state also charges a deed transfer tax of 0.33% of the purchase price.
- PMI (Private Mortgage Insurance): If your down payment is less than 20%, you must pay PMI, which is added to your monthly payment until you reach 20% equity.
Example: On a $350,000 home with 10% down in Minneapolis qualifying for the homestead exclusion, you pay PMI and property tax of approximately $3,420 annually. Mortgage and deed taxes would total about $1,190, and closing costs typically run 2-5% of the purchase price.
Frequently Asked Questions
A homestead classification in Minnesota is a tax benefit for properties that serve as the owner's primary residence. To qualify, you must own and occupy the property as your primary residence by December 31st of the tax year. Benefits include a homestead value exclusion (which reduces the taxable value of your home), lower tax rates, and eligibility for property tax refunds. You must apply for homestead status through your county assessor's office.
The Minnesota Homestead Value Exclusion reduces the taxable value of eligible homestead properties. For homes valued under $413,800 (as of 2024), a portion of the value is excluded from taxation. The exclusion is 40% of the first $76,000 of market value (maximum exclusion of $30,400). This exclusion gradually phases out for homes valued between $76,000 and $413,800. Properties valued over $413,800 still receive a small exclusion. This system helps lower property taxes for most Minnesota homeowners.
Minnesota charges two specific taxes during real estate transactions: 1) Mortgage Registry Tax: 0.23% of the mortgage amount, paid when recording a new mortgage; and 2) Deed Tax: 0.33% of the purchase price ($3.30 per $1,000), paid when transferring property ownership. Hennepin and Ramsey counties charge an additional 0.0001% environmental tax. These taxes are typically paid at closing, with the deed tax usually paid by the seller and the mortgage registry tax by the buyer, though these can be negotiated in the purchase agreement.