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Colorado vs Minnesota:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Colorado and Minnesota. Updated for 2026.

MetricColoradoMinnesota
Median Home Price$520K$335K
Property Tax Rate0.51%1.12%
Avg Closing Costs$7K$5K
Closing Cost %1.4%1.4%
Transfer Tax0.01%0.33%
Homeowners Insurance$3,200/yr$2,100/yr
First-Time Buyer Program
CHFA Down Payment Assistance
Up to $25,000 second mortgage
Minnesota Housing Start Up
Up to $18,000 deferred loan
Verdict

Minnesota wins 3 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $335K and lower overall costs, Minnesota offers meaningful savings compared to Colorado. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Colorado
Home Price$520,000
Down Payment (10%)$52,000
Loan Amount$468,000
Monthly P&I$2,958
Monthly Property Tax$221
Monthly Insurance$267
Monthly PMI$195
Total PITI$3,641/mo
Annual property tax: $2,652
Minnesota
Home Price$335,000
Down Payment (10%)$33,500
Loan Amount$301,500
Monthly P&I$1,906
Monthly Property Tax$313
Monthly Insurance$175
Monthly PMI$126
Total PITI$2,519/mo
Annual property tax: $3,752

Buying in Minnesota saves you approximately $1,122/month ($13,464/year) compared to Colorado, based on median home prices with identical loan terms.

Which State Is Right for You?

Minnesota offers meaningfully lower home prices than Colorado, with median prices running 36% less ($185K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Colorado may find Minnesota far more accessible, particularly when combined with local down payment assistance programs.

Colorado has a moderate property tax advantage at 0.51% versus Minnesota's 1.12%. While the rate gap of 0.61% may seem small, it translates to an annual difference of approximately $1,100 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $9K in savings.

Insurance costs favor Minnesota at $2,100/year versus $3,200/year in Colorado, a difference of $1,100 annually. While not the largest cost factor, this adds up to over $11K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.

Both states offer down payment assistance for first-time buyers. Colorado's CHFA Down Payment Assistance provides Up to $25,000 second mortgage, while Minnesota's Minnesota Housing Start Up offers Up to $18,000 deferred loan. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: Minnesota homes cost $185K less than Colorado on average. That translates to roughly $1,122 less per month in total housing costs if you choose Minnesota. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.

Compare Other States

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