Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Minnesota and Texas. Updated for 2026.
Minnesota wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. However, Texas has a lower total cost when combining home price, closing costs, and insurance. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Minnesota saves you approximately $142/month ($1,704/year) compared to Texas, based on median home prices with identical loan terms.
Home prices in Minnesota and Texas are relatively close, with only a 7% difference ($25K). 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.
Minnesota has a moderate property tax advantage at 1.12% versus Texas's 1.8%. While the rate gap of 0.68% may seem small, it translates to an annual difference of approximately $1,828 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $15K in savings.
Homeowners insurance is significantly cheaper in Minnesota ($2,100/year) compared to Texas ($3,800/year). That's an extra $1,700 per year — or $142/month — eating into your budget in Texas. Texas's high insurance costs are often driven by severe weather risks (hurricanes, tornadoes, or wildfires), which also affect availability of coverage.
Both states offer down payment assistance for first-time buyers. Minnesota's Minnesota Housing Start Up provides Up to $18,000 deferred loan, while Texas's TDHCA My First Texas Home offers Up to 5% DPA grant. 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.
The bottom line: Minnesota and Texas are broadly similar in housing costs, with only $142/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.