Mortgage Rates in New Ulm, MinnesotaMarch 2026

Updated March 2026 | Based on New Ulm market data and regional lending conditions

30-Year Fixed
6.73%
15-Year Fixed
5.97%
Median Home Price
$274,000
Est. Monthly Payment
$1,656

New Ulm is a growing city in Minnesota with a population of 13,522. The current 30-year fixed mortgage rate in New Ulm is 6.73%, which is 0.08% above the national average. With a median home price of $274,000 and a 20% down payment of $54,800, homebuyers can expect a monthly principal and interest payment of approximately $1,419.

Current Mortgage Rates in New Ulm, MN

Below are the current average mortgage rates available in the New Ulm 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 TypeRateNational AvgDifference
30-Year Fixed6.73%6.65%+0.08%
15-Year Fixed5.97%5.89%+0.08%
5/1 ARM6.24%6.15%+0.09%
FHA6.49%6.25%+0.24%
VA6.24%6.05%+0.19%
Jumbo6.98%6.85%+0.13%

New Ulm Housing Market Overview

The New Ulm housing market offers relatively affordable housing compared to many major cities. The median household income in New Ulm is $63,700, and the cost of living index is 93.6 (national average = 100). Based on the 28% affordability rule, you would need an income of approximately $70,971 to comfortably afford the median-priced home in New Ulm, which exceeds the current median household income.

Population
13,522
Median Income
$63,700
Property Tax Rate
1.04%
Cost of Living
93.6
Down Payment (20%)
$54,800
Income Needed
$70,971

Monthly Payment Breakdown for New Ulm

Based on the median home price of $274,000 with 20% down ($54,800), here is what you can expect to pay monthly in New Ulm:

Principal & Interest (30-yr at 6.73%)$1,419
Property Tax$237
Estimated Insurance$69
Total Estimated Monthly$1,725

15-Year vs. 30-Year Mortgage in New Ulm

Choosing a 15-year mortgage in New Ulm at 5.97% instead of a 30-year at 6.73% would save you $178,560 in total interest over the life of the loan. However, your monthly payment would be $1,846 instead of $1,419 — an increase of $427 per month.

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Frequently Asked Questions About Mortgages in New Ulm

What are the current mortgage rates in New Ulm, MN?

As of March 2026, the average 30-year fixed mortgage rate in New Ulm, Minnesota is 6.73%, while the 15-year fixed rate is 5.97%. FHA loans average 6.49% and VA loans 6.24%. These rates are 0.08% above the national average of 6.65%.

How much is a monthly mortgage payment in New Ulm?

Based on the median home price of $274,000 with 20% down, the estimated monthly mortgage payment in New Ulm is $1,419 for principal and interest. Including property taxes of $237/month, the total monthly housing cost is approximately $1,656.

What income do I need to buy a home in New Ulm?

Using the 28% rule, you would need an annual income of approximately $70,971 to afford the median-priced home in New Ulm at $274,000. The median household income in New Ulm is $63,700. This means most households would need to either earn above the median or consider homes below $274,000.

Is New Ulm a good place to buy a home in 2026?

New Ulm offers a below-average cost of living with a cost of living index of 93.6 (national average = 100). The property tax rate in Minnesota is 1.04%, which is near the national average. New Ulm has a population of 13,522 and offers a very affordable lifestyle.

Mortgage Rates in Other Minnesota Cities

Minneapolis, MN
6.69% | $325,000
Saint Paul, MN
6.69% | $285,000
Duluth, MN
6.69% | $225,000
Rochester, MN
6.69% | $295,000
Bloomington, MN
6.69% | $315,000

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Last updated: March 2026. Rates are approximate averages based on regional lending data for the New Ulm, Minnesota area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.