Buying a Home in Minnesota: What You Need to Know
If you're considering buying a home in Minnesota, understanding the true cost of homeownership is essential. Beyond your mortgage payment, Minnesota homeowners face property taxes, insurance costs, and closing fees that vary significantly from the national average. This calculator uses Minnesota-specific data to give you accurate monthly payment estimates.
Minnesota Property Taxes
Minnesota has an effective property tax rate of 0.99%, ranking #16 out of 50 states (where #1 is the highest). On a median-priced home of $354,000, you'd pay approximately $3,505 per year in property taxes, or about $292/month.
Minnesota's property tax rate is near the middle nationally. Property tax rates can vary by county, so check with your local tax assessor for exact rates in your area.
Minnesota Homeowners Insurance
The average annual homeowners insurance premium in Minnesota is $2,852 for $300,000 in dwelling coverage, or about $238/month.
Minnesota's insurance costs are moderate compared to national averages. You may be able to lower your premium by increasing your deductible, bundling with auto insurance, or installing security systems.
Minnesota Closing Costs
Closing costs in Minnesota average 0.91% of the home's purchase price. On a $354,000 home, that's approximately $3,221. Closing costs typically include:
- Loan origination fees
- Appraisal and inspection fees
- Title insurance and search
- Recording fees
- Prepaid property taxes and insurance
Minnesota Housing Market
The median home price in Minnesota is $354,000. This is close to the national median of approximately $410,000, offering a balanced housing market with options for various budgets.
More Minnesota Mortgage Tools
Use these additional calculators to plan your Minnesota home purchase: