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Minnesota vs Montana:
Mortgage & Housing Costs

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

MetricMinnesotaMontana
Median Home Price$335K$430K
Property Tax Rate1.12%0.74%
Avg Closing Costs$5K$6K
Closing Cost %1.4%1.5%
Transfer Tax0.33%None
Homeowners Insurance$2,100/yr$2,100/yr
First-Time Buyer Program
Minnesota Housing Start Up
Up to $18,000 deferred loan
MBOH Regular Bond Program
Up to $15,000 DPA
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 Montana. 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.

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
Montana
Home Price$430,000
Down Payment (10%)$43,000
Loan Amount$387,000
Monthly P&I$2,446
Monthly Property Tax$265
Monthly Insurance$175
Monthly PMI$161
Total PITI$3,048/mo
Annual property tax: $3,182

Buying in Minnesota saves you approximately $529/month ($6,348/year) compared to Montana, based on median home prices with identical loan terms.

Which State Is Right for You?

Minnesota offers meaningfully lower home prices than Montana, with median prices running 22% less ($95K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Montana may find Minnesota far more accessible, particularly when combined with local down payment assistance programs.

Montana has a moderate property tax advantage at 0.74% versus Minnesota's 1.12%. While the rate gap of 0.38% may seem small, it translates to an annual difference of approximately $570 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $5K in savings.

Both states offer down payment assistance for first-time buyers. Minnesota's Minnesota Housing Start Up provides Up to $18,000 deferred loan, while Montana's MBOH Regular Bond Program offers Up to $15,000 DPA. 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 and Montana are broadly similar in housing costs, with only $529/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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