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Minnesota vs Washington:
Mortgage & Housing Costs

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

MetricMinnesotaWashington
Median Home Price$335K$580K
Property Tax Rate1.12%0.98%
Avg Closing Costs$5K$8K
Closing Cost %1.4%1.4%
Transfer Tax0.33%1.78%
Homeowners Insurance$2,100/yr$1,600/yr
First-Time Buyer Program
Minnesota Housing Start Up
Up to $18,000 deferred loan
WSHFC Home Advantage
Up to $10,000 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 Washington. 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
Washington
Home Price$580,000
Down Payment (10%)$58,000
Loan Amount$522,000
Monthly P&I$3,299
Monthly Property Tax$474
Monthly Insurance$133
Monthly PMI$218
Total PITI$4,124/mo
Annual property tax: $5,684

Buying in Minnesota saves you approximately $1,605/month ($19,260/year) compared to Washington, based on median home prices with identical loan terms.

Which State Is Right for You?

Minnesota offers meaningfully lower home prices than Washington, with median prices running 42% less ($245K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Washington may find Minnesota far more accessible, particularly when combined with local down payment assistance programs.

Property tax rates are similar in both states (Minnesota: 1.12%, Washington: 0.98%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.

Closing costs are a one-time but significant expense. Washington averages $8K in closing costs (1.4% of purchase price) while Minnesota averages $5K (1.4%). Much of Washington's higher costs come from its 1.78% transfer tax, which adds $10K 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. Minnesota's Minnesota Housing Start Up provides Up to $18,000 deferred loan, while Washington's WSHFC Home Advantage offers Up to $10,000 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 homes cost $245K less than Washington on average. That translates to roughly $1,605 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.

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