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Delaware vs Minnesota:
Mortgage & Housing Costs

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

MetricDelawareMinnesota
Median Home Price$355K$335K
Property Tax Rate0.56%1.12%
Avg Closing Costs$12K$5K
Closing Cost %3.3%1.4%
Transfer Tax4%0.33%
Homeowners Insurance$1,300/yr$2,100/yr
First-Time Buyer Program
DSHA Homeownership Loan
Up to 5% Preferred Plus
Minnesota Housing Start Up
Up to $18,000 deferred loan
Verdict

Minnesota wins 4 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 Delaware. 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.

Delaware
Home Price$355,000
Down Payment (10%)$35,500
Loan Amount$319,500
Monthly P&I$2,019
Monthly Property Tax$166
Monthly Insurance$108
Monthly PMI$133
Total PITI$2,427/mo
Annual property tax: $1,988
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 Delaware saves you approximately $92/month ($1,104/year) compared to Minnesota, based on median home prices with identical loan terms.

Which State Is Right for You?

Home prices in Delaware and Minnesota are relatively close, with only a 6% difference ($20K). At similar price points, your decision should focus on the other cost factors: property taxes, insurance, closing costs, and the overall quality of life each state offers. Small percentage differences in tax rates compound over decades of homeownership.

Delaware has a moderate property tax advantage at 0.56% versus Minnesota's 1.12%. While the rate gap of 0.56% may seem small, it translates to an annual difference of approximately $1,764 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $14K in savings.

Insurance costs favor Delaware at $1,300/year versus $2,100/year in Minnesota, a difference of $800 annually. While not the largest cost factor, this adds up to over $8K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.

Closing costs are a one-time but significant expense. Delaware averages $12K in closing costs (3.3% of purchase price) while Minnesota averages $5K (1.4%). Much of Delaware's higher costs come from its 4% transfer tax, which adds $14K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.

Both states offer down payment assistance for first-time buyers. Delaware's DSHA Homeownership Loan provides Up to 5% Preferred Plus, 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: Delaware and Minnesota are broadly similar in housing costs, with only $92/month separating them in total PITI payments. In cases like this, your decision should be driven by lifestyle preferences — job opportunities, climate, proximity to family, and quality of life — rather than pure cost savings. Either state offers a reasonable path to homeownership.

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