Minnesota mortgages are your typical mortgage products, with the emphasis being placed on FHA styled loans. FHA backed loans are the majority of loans that are taken out in the state. Other than FHA mortgages, you will find standard fixed rate products, adjustable rate mortgages (ARM’s) and VA backed loans. The FHA programs offered in the state are: Fixed rate, ARM, Energy efficiency loans, graduate mortgages, condominium loams and Streamlined-K mortgages. The streamlined-K mortgage program allows the borrower to receive up to $35,000 in cash above the mortgage amount to make necessary renovations to a property. This program has specific guidelines, but is still easy to qualify for.
Minnesota Mortgage Rates
On average, Minnesota mortgage rates are lower than the national average. This is typical for a Mid West state. However, mortgage interest rates around the Twin Cities area is comparable to the national average or can be slightly higher. The difference in mortgage rates is due primarily to the median cost of homes in the area. Around the Twin Cities and Canadian border home prices are very high. Everywhere else in the state home prices are lower than the national average. Mortgage rates will also be factored by employment, down payment and credit status. Type of mortgage, mortgage insurance and lender will also be a determining cause of rate.
Minnesota Refinance Rates
Refinance rates in the state are very similar to the mortgage rates found around Minnesota and its adjoining neighbor states. Minnesota residents will find that refinancing will require all the same credentials as obtaining a loan. Many refinance through a FHA program which allows them to enjoy lower rates. Home equity will play a part in the refinancing as will the type of loan selected. Adjustable rate refinancing will have a much lower interest rate, but will not remain that way.
Minnesota Mortgage Lenders And Brokers
Minnesota has many lending houses within the state. These lenders comprise of private lenders, small banks, credit unions and large corporate banking institutions. Internet mortgages are also allowed in the state if they conform to Minnesota laws. Many lenders offer special programs for people with bad credit or first time home buyers. Some of these programs will actively compete with FHA backed rates and should be considered. Most of the main lenders are located in and around the Twin Cities area.