Updated: January 8, 2025
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Minnesota's current mortgage refinance rates are 6.25% for a 15-year fixed loan and 6.7% for a 30-year fixed loan. The national averages are 6.12% and 7.08%, respectively.
We provide the most up-to-date information on refinancing your mortgage in Minnesota. From understanding today's rates and trends to knowing when and how to refinance, we offer insights tailored to your needs, helping you make informed decisions.
MoneyGeek used Zillow data for the rates on this page. Because mortgage rates shift daily, we use a snapshot to analyze rate information for Minnesota. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless noted otherwise, featured rates are annual percentage rates (APRs).
This data was last updated in December 2024.
The current 30-year refinance rate in Minnesota is 6.7%. The state's average mortgage debt was $207,718 as of September 2023, according to Experian.
If your current rate is higher than 6.7%, refinancing your mortgage could lower your monthly payments and the total interest over the life of the loan. Below are the current refinance rates in Minnesota so you can explore your options.
| 15-Year Fixed | 6.14% | 6.25% |
| 30-Year Fixed | 6.63% | 6.70% |
In December 2024, Minnesota's 15-year refinance rate increased, while the 30-year refinance rate decreased compared to the previous month.
Data from 2024
Interest rates often rise due to the Federal Reserve's monetary policy, inflation and economic conditions. These also shape refinance rate trends in Minnesota. Understanding these influences can help you anticipate rate changes.
Refinancing your mortgage in Minnesota can reduce monthly payments or interest rates. Understanding the steps will help you make informed decisions. Here's how to make refinancing work for you.
Credit scores influence mortgage rates; higher scores often secure better rates. If your score is below Minnesota's average of 742, consider improving it by paying down debts or correcting errors.
Assess your current mortgage terms against market rates. Minnesota's 15-year fixed rate is 6.25%, and the 30-year is 6.7%. Refinancing may be wise if these rates are lower and you plan to stay in your home long-term.
Collect documents like tax returns, pay stubs and bank statements to streamline the process, making it easier for lenders to assess your financial health against your original mortgage.
Compare offers from different lenders to find favorable terms. Look for competitive interest rates, low fees and good customer service.
Be aware of closing costs like appraisal and title fees. Minnesota's average is $3,852, according to the National Association of Realtors.
Submit your application to your chosen lender with complete and accurate documents. A checklist of required paperwork can streamline the process and prevent delays.
Secure your rate through a mortgage rate lock to protect against market fluctuations. Locking early can prevent unexpected cost increases.
Finalize the refinancing by signing the necessary documents. Carefully review the terms to ensure they meet your expectations. Choose a convenient closing date to ensure a smooth process.
Begin payments on your new mortgage terms. Setting up automatic payments can help you stay on track, avoid late fees and maintain your credit score.
Review your mortgage terms and market conditions regularly. Fluctuating interest rates may present refinancing opportunities, and staying informed can help you take advantage of potential savings.
How soon you can refinance a mortgage in Minnesota depends on the loan type. Conventional loans allow immediate refinancing, but a cash-out refinance usually requires a six-month seasoning period. USDA loans typically require a 12-month waiting period before refinancing.
Minnesota's average refinance rate in October was 6.08%, lower than in previous months, which is a good example of when to refinance a mortgage. However, refinancing comes with additional closing costs, which can take years to recover. While you could refinance a mortgage within a year, it's usually not worth it unless there's a drastic interest rate reduction.
Refinancing your mortgage can reduce your monthly payments by lowering interest rates. But watch out for closing costs that might offset these savings. Knowing when to refinance a mortgage in Minnesota helps you spot opportunities for financial gain. Explore the following scenarios where refinancing makes sense.
Refinancing when interest rates are lower can reduce monthly payments and overall interest costs. To find the best rates, consult with local lenders and credit unions, which often offer competitive rates.
Refinancing when your property's value rises can increase home equity. Enhancing curb appeal or updating interiors can boost value. With Minnesota's average home value at $340,047, this can lead to better loan terms.
An improved credit score can qualify you for better refinancing rates. Paying bills on time and reducing debt can boost your score.
Refinancing to a shorter loan term can save interest and pay off your mortgage faster. It reduces total interest and builds equity quicker, making it a smart choice for those who can manage higher monthly payments.
Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage can provide financial stability. A fixed rate protects against future interest rate hikes for predictable monthly payments and easy long-term budgeting.
Use MoneyGeek's free mortgage refinance calculator to determine whether refinancing is beneficial for your situation.
Make sure refinancing your existing home loan will save you money.
Total Savings:
By refinancing, you’ll pay $0
Your credit score can impact the rates you qualify for. Minnesota's current average refinance rate for a 30-year fixed-rate loan with a loan-to-value ratio (LTV) of 80% or lower is 6.97% for credit scores between 680 and 740, compared to 6.7% for scores above 740. The table below shows average APRs for various credit scores and LTV ratios.
| 6.18% | 6.46% |
Loan type also affects the rates you qualify for. Minnesota's current average refinance rates are 6.7% for a 30-year fixed-rate loan and 8.07% for a 30-year FHA fixed-rate loan. The table below shows the average APRs for various loan types.
| 5.88% | 6.12% |
Understanding refinance rates in Minnesota can be tricky due to fluctuating rates and economic changes. To help you, we answer common questions about refinancing.
Refinancing can be a wise choice if it lowers your interest rate, reduces monthly payments or switches you from an adjustable-rate to a fixed-rate loan. Consider the costs, fees and how long you plan to stay in your home before deciding.
To secure the best mortgage refinance rate, shop around and compare offers from different lenders. Also, improve your credit score and consider paying down your mortgage to reduce your loan-to-value ratio.
Refinancing offers benefits like lower interest rates, reduced monthly payments and the option to switch loan types. However, it also has cons, such as closing costs, the potential for extending your loan term and the risk of not recouping costs if you move soon.
Refinancing a mortgage typically involves application fees, appraisal fees and closing costs, which can range from 2% to 5% of the loan amount.
Minnesota's current average refinance rates are 6.25% for a 15-year fixed loan and 6.7% for a 30-year fixed loan. Rates in Minneapolis are likely to reflect these state averages, but the rate you qualify for may vary based on factors such as your credit score and loan amount.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
