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Our Minneapolis, Minnesota mortgage calculator helps potential homebuyers determine their monthly mortgage payments and total loan cost. By inputting the purchase price of the home, down payment amount, interest rate, loan term, and property tax rate, you can see exactly what your monthly mortgage payment will be, in addition to the total interest paid and total loan cost. Here’s our complete guide on how to use the calculator.
Key Points
• A Minneapolis mortgage calculator estimates monthly payments, total interest paid, and total cost of the loan.
• The calculator can help you estimate the impact of different down payments, interest rates, and loan terms on your monthly payments and overall loan cost.
• The loan term, typically 15 or 30 years, significantly impacts your monthly payments and total interest paid, with shorter terms leading to higher payments but less interest over time.
• The 28/36 rule, a guideline for mortgage affordability, suggests that your mortgage payment should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%.
• Down payment assistance programs in Minneapolis can help first-time homebuyers and those with limited savings reduce the initial financial burden and secure better loan terms.
Minneapolis Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price you have agreed to with the home seller. This figure directly affects your down payment, home loan amount, and monthly mortgage payments.
• Down payment: The down payment is the amount the homebuyer pays upfront, often expressed as a percentage of the total purchase price. Most buyers put down between 3% and 20%, with a 20% down payment typically avoiding the need for private mortgage insurance (PMI).
• Loan term: The loan term is the length of time you have to repay the mortgage. A shorter term, such as 15 years, can result in higher monthly payments but significantly less interest paid over the life of the loan. A longer term, like 30 years, offers lower monthly payments but higher total interest costs.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. Interest rates can vary based on market trends, borrower qualifications, and the type of mortgage loan. A higher credit score and a larger down payment can often secure a lower interest rate, reducing your monthly payments and the total interest paid over the life of the loan.
• Annual property tax: The annual property tax is a component of your monthly mortgage payment. In Minneapolis, property taxes are typically around 1.15% of the home’s assessed value.
• Total monthly payment: The total monthly payment includes the principal and interest you will pay each month. This calculator also includes property tax. Other costs that may be rolled into a housing payment include homeowners insurance, private mortgage insurance, and homeowners association (HOA) fees.
• Total interest paid: The total interest paid is the amount of interest you will pay over the life of the loan. This figure can be substantial, especially for 30-year loan terms. A lower interest rate or a shorter loan term can significantly reduce the total interest, making homeownership more affordable in the long run.
• Total loan cost: The total loan cost is the all-in amount you will pay for the loan, including principal and interest. This figure helps homebuyers understand the true cost of homeownership.
How to Use the Minneapolis, MN Mortgage Calculator
Using the Minneapolis mortgage calculator is straightforward and can provide valuable insights into your home-buying budget. Here’s a step-by-step guide on how to use it:
Step 1: Enter Your Home Price
Enter the amount you will pay the seller for the property, which will directly impact your home loan amount and monthly payment.
Step 2: Select a Down Payment Amount
The down payment is the portion you pay upfront for the home. A down payment calculator can help you decide on your number.
Step 3: Choose a Loan Term
Select the duration over which you will repay your mortgage. Most consumers choose a mortgage with either a 30-year or a 15-year term.
Step 4: Enter an Interest Rate
Input the interest rate you think you might qualify for to the second or third decimal point. A lower interest rate can significantly reduce your monthly payments and total loan cost. If you’re looking at large loan amounts (over $800K), you’ll want to look at rates for jumbo loans.
Step 5: Add Your Annual Property Tax Rate
Property taxes are what you will pay each year to the local government. Enter the property tax percentage, not the dollar amount. The Hennepin County (Minneapolis) property tax rate is 1.15% of the home’s assessed value.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator has many benefits, including helping you assess affordability before house hunting. It estimates monthly payments based on loan amount, interest rate, and term. You can compare scenarios like interest rate changes and the impact of different down payments to help you realistically decide what you can afford.
Mortgage calculators are also particularly useful for first-time homebuyers who may not be aware of all that goes into a mortgage payment and how that payment is determined. Keep in mind, though, that the calculator is designed for fixed-rate mortgages. If you choose a loan with a variable rate, your payment will not remain the same throughout the life of the loan.
By using a mortgage payment calculator, you can set realistic savings goals, plan your budget effectively, and ensure that your home purchase is financially feasible.
Deciding How Much House You Can Afford in Minneapolis
In 2025, Minneapolis’ median home sale price was $353,000. Lenders advise keeping housing costs (mortgage, taxes, insurance, fees) below 28% of gross monthly income. Affording a $353,000 home requires approximately $80,000 in annual income with a 20% down payment, or $70,600, assuming a 7.00%, 30-year mortgage. The monthly mortgage would be $1,879.
Total debt should be within 36% of income, allowing for $530 in other monthly debts (student loans, auto loans, and credit cards). Use a home affordability calculator for a rough estimate based on income and debt obligations.
It can be useful to go through the mortgage preapproval process with a potential lender to get a clear picture of how much of a loan you can afford.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Components of a Mortgage Payment
The main components of a mortgage payment include the principal and interest. Our Minneapolis mortgage calculator also factors in property tax, which is typically a percentage of the home’s assessed value.
Other components of a mortgage payment may include:
• Homeowners insurance: Protection against damage to your home and personal property.
• Private mortgage insurance (PMI): Required if your down payment is less than 20% of the home’s value.
• HOA fees: Monthly or annual fees paid to a homeowners association for maintenance and management of common areas and amenities in a community.
If you’re considering an FHA loan, you may want to use an FHA mortgage calculator, which allows for that kind of loan’s mortgage insurance premiums.
Likewise, a VA mortgage calculator can be helpful if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.
Cost of Living in Minneapolis, MN
Minneapolis’ cost of living is just under 6% of the national average, with housing being nearly 18% below the national average. The only area that is above the national average, according to COLI 2024 Annual Average Data, is groceries.
Cost of living is benchmarked at 100. It measures the relative price of goods and services in different locations to help compare how expensive it is to live in one area versus another. In Minneapolis, the cost of living index is 93.6. Here’s how Minneapolis compares to the national average in other areas:
Minneapolis’ Cost-of-Living Stats
Overall Cost of Living
93.6
Groceries
102.6
Housing
82.8
Utilities
96.8
Transportation
96.2
Health Care
96.3
Miscellaneous Goods/Services
96.6
Overall, Minneapolis is an affordable area to live as a single adult or if you’re raising a family. There are plenty of areas and neighborhoods that should fit your lifestyle and budget.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
If you’re considering buying your first home in Minneapolis, there are several Minnesota down payment assistance programs available to help you cover the initial costs associated with homeownership. These programs can provide financial aid specifically designated for the down payment, closing costs, or potentially both. To qualify for these valuable resources, you typically must not have owned a primary residence within the past three years.
Reducing your mortgage payment can make homeownership more manageable over time. Here are several ways to lower your monthly mortgage costs:
• Drop private mortgage insurance (PMI) once you reach 20% equity in your home. This can be achieved through making regular mortgage payments over time or through home appreciation, which increases your equity. Once you achieve this level of equity, you can formally request to remove the PMI from your loan, which can significantly lower your monthly mortgage payment.
• If you receive a bonus or other windfall, consider mortgage recasting. This involves making a lump sum payment toward your mortgage principal, which your lender will then re-amortize with the same interest rate and term. The result is a new, smaller balance that translates to lower monthly payments and can help you save on interest over the life of the loan.
• Extend the term of your loan to reduce monthly payments. For instance, if you originally had a 15-year mortgage, refinancing your mortgage to a 30-year loan term can significantly lower your monthly payments. However, this strategy comes with a trade-off: you’ll pay more in interest over the life of the loan.
• Appeal your property taxes if you believe your assessment is too high. Start by reviewing your annual property tax assessment to identify any discrepancies. While rare, a successful appeal can reduce your property tax bill, lowering your overall monthly mortgage payment.
• Shop for a lower homeowners insurance rate. By comparing quotes from different insurers, you can potentially save hundreds of dollars each year. A lower homeowners insurance rate can make a noticeable difference in your overall monthly costs.
The Takeaway
A Minneapolis mortgage calculator can offer valuable insights into determining your home-buying budget. It helps you estimate your monthly payments, understand total costs involved, and see the impact of different down payments and loan terms on your overall financial picture. Simply enter in the purchase price, down payment amount, interest rate, loan term, and property tax rate to view your results.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
In 2025, the average mortgage in Minneapolis was $2,460. Mortgage payments for the same priced home can vary based on down payment and interest rate. Using a Minneapolis mortgage calculator can help you estimate your specific monthly payment.
How does my credit score affect my mortgage loan interest rate?
Your credit score plays a significant role in determining your interest rate for a mortgage loan. A higher credit score can secure a lower interest rate, reducing your monthly payments and the total cost of the loan. A lower credit score may result in a higher interest rate, making the mortgage more expensive. Lenders use your credit score to assess your risk, so building your score can lead to better loan terms and savings over the life of the mortgage.
What are principal and interest on a mortgage loan?
The principal is the amount you borrow to purchase the home, while the interest is the cost of borrowing that principal. In the early years of your mortgage, a larger portion of your payment goes toward interest, but over time, more of it pays down the principal. Understanding this breakdown can help you make informed decisions about prepayments and refinancing to optimize your financial strategy.
Should I choose a 30-year or 15-year mortgage term?
When choosing between a 30-year and 15-year mortgage, weigh your finances. A 30-year term offers lower payments but higher overall interest. A 15-year term has higher payments but saves on interest and builds equity faster. If you can afford it, a 15-year mortgage is better for long-term savings. If you need budget flexibility, a 30-year mortgage provides breathing room while achieving homeownership.
How much is a $600,000 mortgage payment for 30 years?
For a 30-year fixed mortgage at a 7.00% interest rate, the monthly payment on a $600,000 home loan would be approximately $3,992. For a $600,000 home with 20% down ($120,000), the payment would be $3,193, assuming other variables remain the same.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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