Estimate your monthly mortgage payment in Minnesota — principal & interest plus Minnesota property tax and homeowner’s insurance.
Buying a home in Minnesota: what to know
Minnesota’s typical home value was about $351,000 in August 2026 (Zillow ZHVI, up 0.8% year over year), and the state’s 1.02% median effective property tax rate sits right around the national middle. This calculator pre-fills the $351,000 median price, applies Minnesota’s 1.02% tax rate and the $1,774/year average homeowner’s insurance premium, and adds PMI for down payments under 20%. Minnesota Housing’s Start Up program (up to $18,000 in down payment and closing-cost help for first-time buyers) and Step Up (up to $14,000 for repeat buyers) are detailed below.
Minnesota mortgage facts
| Fact | Figure |
|---|---|
| 2026 conforming loan limit (1-unit) | $832,750 |
| Median home price | $350,752 |
| Median effective property tax rate | 1.02% |
| Average homeowner’s insurance | $1,774/year |
Data as of October 2026. Sources: FHFA (2026 conforming limits), Zillow ZHVI (August 2026), Tax Foundation (2026 (2024 ACS data)), NAIC via Insurance Information Institute (2022 (published May 2025)); rate: 7.40% (Freddie Mac PMMS, week ending October 15, 2026)
Minnesota first-time buyer programs
- Minnesota Housing Start Up — The state’s flagship first-time buyer program (no homeownership in the past three years): a fixed-rate first mortgage (FHA, VA, USDA, or conventional) paired with a down payment and closing-cost loan of up to $18,000. Income limits apply (up to about $152,200 depending on county), a minimum credit score and homebuyer education are required, and loans go through Minnesota Housing-approved lenders. Official site
- Minnesota Housing Step Up — For repeat buyers — or first-time buyers who exceed Start Up’s income limits: a similar fixed-rate first mortgage plus a down payment/closing-cost loan up to $14,000, with higher income caps (up to about $196,600). Step Up can also be used to refinance an existing Minnesota Housing mortgage, and the Monthly Payment Loan variant can cover closing costs. Official site
How to use this calculator
The $350,752 statewide median price is pre-filled — Twin Cities buyers should nudge it toward the Minneapolis metro ZHVI of about $390,000, while outstate buyers will usually go lower. Enter your down payment: 20% down avoids PMI, and anything less adds it until you hit 20% equity. Minnesota’s 1.02% property tax rate and $1,774/year average insurance are applied automatically; set the interest rate to your actual quote. Minnesota has no high-cost counties for 2026, so every loan up to $832,750 qualifies for conforming pricing statewide.
Worked example: a median Minnesota home
Take a median-priced Minnesota home at $350,752. With 20% down ($70,150.40), the loan amount is $280,601.60. At 7.40% (Freddie Mac PMMS, week ending October 15, 2026) on a 30-year fixed term, principal and interest come to $1,942.83/month. Add property tax of about $298.14/month (1.02% of $350,752, divided by 12) and insurance of about $147.83/month ($1,774 a year), for a total estimated payment of $2,388.80/month. Over 30 years, total interest would be about $418,816.77. Your rate, down payment, and county tax bill will move these numbers — use the calculator above with your own figures.
What is the conforming loan limit in Minnesota for 2026?
The 2026 FHFA conforming loan limit for a one-unit home is $832,750, per the FHFA’s November 2025 announcement — and it applies in every Minnesota county, from the Twin Cities to Duluth. Minnesota has no designated high-cost counties for 2026, so the baseline covers the entire state.
How much are property taxes in Minnesota?
The median effective property tax rate in Minnesota is about 1.02% (Tax Foundation, 2026 (2024 ACS data)). On a $350,752 home, that’s roughly $3,578 a year, or $298 a month — already included in the calculator above. Actual bills vary by county and city, and Minnesota’s homestead exclusion can lower the effective rate on modest-priced homes.
What is Minnesota’s homestead market value exclusion?
Minnesota reduces the taxable value of owner-occupied homes through the homestead market value exclusion — up to $38,000 excluded for homes valued at $76,000 or less, phasing down as value rises. It doesn’t appear as a line item on the calculator, but it’s baked into the state’s published effective rates and is one reason Minnesota’s burden lands near the national middle despite solid home values.
What is Minnesota Housing’s Start Up program?
Start Up is Minnesota Housing’s main first-time-buyer program: a competitive fixed-rate first mortgage plus a down payment and closing-cost loan of up to $18,000 (structured as either a monthly-payment loan or a deferred-payment loan). Buyers must not have owned a home in the past three years, meet income and purchase-price limits, complete an approved homebuyer education course, and work with a Minnesota Housing-approved lender.
How is Minnesota’s housing market doing in 2026?
Minnesota’s typical home value was $350,752 in August 2026 (Zillow ZHVI), up 0.8% year over year — modest, steady growth. The Minneapolis metro runs higher at about $390,000 (up 1.7% YoY). Inventory has improved but the market remains broadly balanced, with relatively affordable prices compared to the coasts supporting stable demand.