Mortgage lender closing cost rankings in Minnesota (2025)

Minnesota uses a mortgage instrument (not a deed of trust) and requires judicial foreclosure as the primary process, though a non-judicial foreclosure by advertisement is also available under state statute. The foreclosure by advertisement process includes a statutory redemption period of six months for most properties, extending to twelve months in some circumstances. Minnesota is an attorney-optional closing state — a licensed title company or closing agent may conduct the closing without an attorney present, though buyers may hire one independently. The state imposes a mortgage registry tax (MRT) on new mortgages at a rate of 0.23% of the debt secured, and a deed transfer tax (conservation fee and state deed tax) applies to conveyances; the deed tax rate is 0.33% of the net consideration above $3,000. Transfer taxes are customarily paid by the seller. Title insurance rates in Minnesota are filed and approved by the Department of Commerce under a file-and-use regulatory framework. Minnesota's Department of Commerce oversees mortgage lender licensing and consumer protection for residential lending. Prepayment penalties on residential mortgages are restricted under state law.

Conventional loans dominate Minnesota's purchase market, accounting for 81.9% of originations (42,257 loans) in the HMDA 2024 data — above the typical national mix. FHA loans represent 11.2% of volume (5,803 originations), serving buyers with lower down payments or credit scores. VA loans account for 6.1% (3,137 originations), a modest share consistent with Minnesota's relatively limited active-duty military concentration compared to states with large bases. USDA loans are a small but present segment at 0.8% (392 originations), reflecting rural and exurban communities in greater Minnesota that fall within eligible geographic boundaries.