Mortgage Rates in Albert Lea, Minnesota — March 2026
Updated March 2026 | Based on Albert Lea market data and regional lending conditions
Albert Lea is a growing city in Minnesota with a population of 18,016. The current 30-year fixed mortgage rate in Albert Lea is 6.64%, which is 0.01% below the national average. With a median home price of $252,000 and a 20% down payment of $50,400, homebuyers can expect a monthly principal and interest payment of approximately $1,293.
Current Mortgage Rates in Albert Lea, MN
Below are the current average mortgage rates available in the Albert Lea area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.64% | 6.65% | -0.01% |
| 15-Year Fixed | 5.9% | 5.89% | +0.01% |
| 5/1 ARM | 6.19% | 6.15% | +0.04% |
| FHA | 6.45% | 6.25% | +0.2% |
| VA | 6.2% | 6.05% | +0.15% |
| Jumbo | 6.89% | 6.85% | +0.04% |
Albert Lea Housing Market Overview
The Albert Lea housing market offers relatively affordable housing compared to many major cities. The median household income in Albert Lea is $68,600, and the cost of living index is 101.9 (national average = 100). Based on the 28% affordability rule, the median income in Albert Lea is sufficient to afford the median-priced home.
Monthly Payment Breakdown for Albert Lea
Based on the median home price of $252,000 with 20% down ($50,400), here is what you can expect to pay monthly in Albert Lea:
15-Year vs. 30-Year Mortgage in Albert Lea
Choosing a 15-year mortgage in Albert Lea at 5.9% instead of a 30-year at 6.64% would save you $161,280 in total interest over the life of the loan. However, your monthly payment would be $1,690 instead of $1,293 — an increase of $397 per month.
Calculate Your Albert Lea Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Albert Lea
What are the current mortgage rates in Albert Lea, MN?
As of March 2026, the average 30-year fixed mortgage rate in Albert Lea, Minnesota is 6.64%, while the 15-year fixed rate is 5.9%. FHA loans average 6.45% and VA loans 6.2%. These rates are 0.01% below the national average of 6.65%.
How much is a monthly mortgage payment in Albert Lea?
Based on the median home price of $252,000 with 20% down, the estimated monthly mortgage payment in Albert Lea is $1,293 for principal and interest. Including property taxes of $225/month, the total monthly housing cost is approximately $1,518.
What income do I need to buy a home in Albert Lea?
Using the 28% rule, you would need an annual income of approximately $65,057 to afford the median-priced home in Albert Lea at $252,000. The median household income in Albert Lea is $68,600. The median income is currently sufficient to meet this threshold.
Is Albert Lea a good place to buy a home in 2026?
Albert Lea has a moderate cost of living with a cost of living index of 101.9 (national average = 100). The property tax rate in Minnesota is 1.07%, which is near the national average. Albert Lea has a population of 18,016 and offers a balanced lifestyle.
Mortgage Rates in Other Minnesota Cities
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Last updated: March 2026. Rates are approximate averages based on regional lending data for the Albert Lea, Minnesota area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.