Minnesota Refinance Rates & Programs 2026

Minnesota homeowners benefit from a strong housing market, especially in the Twin Cities. With moderate refinancing costs and no state mortgage tax, here's what you need to know about refinancing in the North Star State.

Current Minnesota Refinance Rates

As of March 2026:

| Loan Type | Average Rate | |-----------|--------------| | 30-Year Fixed | 6.22% | | 15-Year Fixed | 5.54% | | FHA 30-Year | 6.17% | | VA 30-Year | 5.50% |

Twin Cities metro may see lower rates. Use our refinance calculator.

Minnesota-Specific Refinance Programs

Minnesota Housing Finance Agency (Minnesota Housing)

Minnesota Housing programs:

• Start Up down payment assistance
• Step Up home improvement loans
• If you used assistance, check subordination before refinancing

Mortgage Credit Certificate: MCCs provide up to $2,000 annual tax credits.

USDA Refinancing

Rural Minnesota qualifies for USDA loans outside Twin Cities, Rochester, Duluth, and St. Cloud.

Cost of Refinancing in Minnesota

Moderate costs:

| Cost Item | Typical Amount | |-----------|---------------| | Lender origination fee | $0 - $2,200 | | Appraisal | $450 - $650 | | Title insurance | $700 - $1,200 | | Recording fees | $50 - $100 | | Minnesota mortgage tax | 0.23% | | Total typical closing costs | $4,000 - $7,000 |

Minnesota Mortgage Registry Tax: Minnesota charges 0.23% of the new loan amount as mortgage registry tax.

Example: $400,000 loan = $920 tax

This is much lower than states like Delaware but still adds cost.

Use our break-even calculator.

When to Refinance in Minnesota

Refinance if rates dropped 0.75%-1.0%, you want to eliminate PMI, or consolidate debt. See our cash-out guide.

Types of Refinance Available

Conventional, FHA Streamline, VA IRRRL, USDA Streamlined, Cash-Out all available.

Minnesota Refinance FAQ

1. How long does refinancing take? 30-40 days.

2. Can I avoid Minnesota's mortgage tax? No, but 0.23% is low compared to other states with mortgage taxes.

3. Will property taxes change? No. Minnesota property taxes vary widely by county.

4. What credit score needed? 580 FHA, 620 conventional, 740+ best rates.

5. Can I keep my Minnesota Housing MCC? Yes, with participating lender.

Bottom Line

Minnesota's 0.23% mortgage tax and moderate costs mean you need rates to drop 0.75%-1.0% to justify refinancing.

Get quote: See rates here.

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About the Author: Bill McCoy, licensed mortgage broker, 15 years experience.