Monthly Payment on a $250K Mortgage in Minnesota
Using Minnesota's 1.12% property tax rate and $2,100/yr homeowners insurance.
$250K Mortgage in Minnesota: Rate Comparison
Monthly PITI payment using Minnesota's 1.12% property tax and $2,100/yr insurance.
| Rate | 5% Down | 10% Down | 20% Down |
|---|---|---|---|
| 5.5% | $1,895 | $1,817 | $1,544 |
| 6.0% | $1,971 | $1,889 | $1,607 |
| 6.5% | $2,048 | $1,962 | $1,672 |
| 7.0% | $2,127 | $2,037 | $1,739 |
| 7.5% | $2,208 | $2,113 | $1,807 |
| 8.0% | $2,290 | $2,191 | $1,876 |
How This Compares to Minnesota's Median
A $250K home is 25% below Minnesota's median of $335K. You'll find homes at this price in cities like Duluth, Mankato, Owatonna, St. Cloud, Faribault, Winona.
Income Needed for a $250K Home in Minnesota
To afford this payment of $1,962/mo in Minnesota, you'd need a household income of approximately $84K/year (28% rule). That's the standard guideline lenders use to determine what you can comfortably spend on housing.
See what a $85K salary can afford →Closing Costs in Minnesota
Estimated closing costs in Minnesota: $4K (1.4% of purchase price). Minnesota also charges a 0.33% transfer tax, which may add $825 to your transaction costs.
What to Know About a $250K Mortgage in Minnesota
With 10% down ($25,000), your loan of $225,000 at 6.5% over 30 years produces a principal and interest payment of $1,422/mo. Adding Minnesota's 1.12% property tax ($233/mo) and $2,100/yr insurance ($175/mo) brings your total to $1,962/mo. Because you're putting less than 20% down, PMI adds $131/mo until you reach 20% equity.
Over the full 30-year term, you'll pay approximately $286,975 in total interest. Even a small rate reduction makes a big difference — dropping from 7.0% to 6.5% on this loan saves about $26,920 over the life of the loan.