Closing Costs in Minnesota (2026)

Buyers in Minnesota typically pay 2% to 5% of the purchase price in closing costs — roughly $7,418 to $18,545 on a median-priced home around $370,900. Our itemized estimate, including lender fees, title work, government fees, and prepaid taxes and insurance, comes to about $13,436 (3.6% of the price) with 20% down at 6.75%.

The effective property tax rate in Minnesota is approximately 1.11% of home value per year. On a median-priced home of $370,900, that works out to about $4,117 per year, or $343 per month. Several months of taxes are usually collected up front at closing to fund your escrow account.

Yes. The statewide transfer/recordation tax is about 0.33% of the sale price. At that rate on a $370,900 home, the tax is roughly $1,224 — and in this state the buyer does not customarily pay it, so it is not included in our buyer-side estimate. Everything is negotiable in the purchase contract.

The 2026 conforming loan limit in Minnesota is $832,750 for a one-unit home — the national baseline. No counties in this state are designated high-cost for 2026. On a median-priced $370,900 home with 20% down, the loan is $296,720, so a typical purchase stays conforming. FHA limits also vary by county (2026 floor about $541,288).

With 20% down on a $370,900 home, plan for about $87,616 in total: $74,180 for the down payment plus roughly $13,436 in closing costs and prepaid items. A smaller down payment reduces the cash needed but adds PMI to your monthly payment.

On a median-priced $370,900 home with 20% down and a 30-year loan at 6.75%, the total monthly payment is about $2,563 — $1,925 in principal and interest, $343 in property taxes, and $296 in homeowners insurance.