Mortgage Rates in Melrose, Minnesota — March 2026
Updated March 2026 | Based on Melrose market data and regional lending conditions
Melrose is a smaller Minnesota community of 29,020 where the housing market reflects local economic conditions. The current 30-year fixed rate here is 6.77% (0.12% above the national average). The median home price of $415,000 translates to roughly $2,608/month with 20% down — requiring an income of about $111,771, which exceeds the local median of $74,500.
Current Mortgage Rates in Melrose, MN
Below are the current average mortgage rates available in the Melrose 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 | 6.77% | 6.65% | +0.12% |
| 15-Year Fixed | 6.01% | 5.89% | +0.12% |
| 5/1 ARM | 6.26% | 6.15% | +0.11% |
| FHA | 6.51% | 6.25% | +0.26% |
| VA | 6.26% | 6.05% | +0.21% |
| Jumbo | 7.02% | 6.85% | +0.17% |
Melrose Housing Market Overview
Housing in Melrose sits near the national average at $415,000. With a median household income of $74,500 and a cost of living index of 102.9, some buyers may need to look at lower price points or consider larger down payments.
Monthly Payment Breakdown for Melrose
Based on the median home price of $415,000 with 20% down ($83,000), here is what you can expect to pay monthly in Melrose:
15-Year vs. 30-Year Mortgage in Melrose
Choosing a 15-year mortgage in Melrose at 6.01% instead of a 30-year at 6.77% would save you $272,340 in total interest over the life of the loan. However, your monthly payment would be $2,803 instead of $2,158 — an increase of $645 per month.
Calculate Your Melrose 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 Melrose
What are the current mortgage rates in Melrose, MN?
As of March 2026, the average 30-year fixed mortgage rate in Melrose, Minnesota is 6.77%, while the 15-year fixed rate is 6.01%. FHA loans average 6.51% and VA loans 6.26%. These rates are 0.12% above the national average of 6.65%.
How much is a monthly mortgage payment in Melrose?
Based on the median home price of $415,000 with 20% down, the estimated monthly mortgage payment in Melrose is $2,158 for principal and interest. Including property taxes of $450/month, the total monthly housing cost is approximately $2,608.
What income do I need to buy a home in Melrose?
Using the 28% rule, you would need an annual income of approximately $111,771 to afford the median-priced home in Melrose at $415,000. The median household income in Melrose is $74,500. This means most households would need to either earn above the median or consider homes below $415,000.
Is Melrose a good place to buy a home in 2026?
Melrose has a moderate cost of living with a cost of living index of 102.9 (national average = 100). The property tax rate in Minnesota is 1.3%, which is near the national average. Melrose has a population of 29,020 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 Melrose, Minnesota area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.