Closing Costs in Minnesota
The average closing cost in Minnesota is $12,802, which is 3.57% of the home price. Minnesota's transfer tax rate is 0.33%.
Minnesota's closing costs include a deed tax of $1.65 per $500 (0.33%) and a mortgage registration tax of $1.15 per $500 (0.23%) of the mortgage amount. Combined, these taxes add approximately 0.5% to the purchase price at closing. Minnesota does not require an attorney at closing — title companies manage the process. One unique feature is the state's Torrens (registered land) system, used for some properties, which provides absolute title certainty but requires special procedures for title work.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Avg Closing Costs
$12,802
As % of Price
3.57%
Transfer Tax
0.33%
Attorney Required
No
Closing Cost Breakdown for a $358,473 Home
| Item | Estimated Cost |
|---|---|
| Loan Origination Fee (1%) | $2,868 |
| Appraisal Fee | $500 |
| Credit Report | $50 |
| Title Search & Insurance | $1,792 |
| Transfer Tax | $1,183 |
| Recording Fees | $150 |
| Home Inspection | $400 |
| Survey | $350 |
| Attorney Fee (optional) | N/A |
| Prepaid Property Tax (2 months) | $591 |
| Prepaid Homeowners Insurance (1 year) | $1,075 |
| Prepaid Interest (15 days) | $766 |
| Estimated Total | $9,725 |
* Estimates based on average Minnesota home price of $358,473 with 20% down payment. Actual costs may vary. Transfer tax, attorney fees, and prepaid items are state-specific.
How to Reduce Closing Costs in Minnesota
Plan for Minnesota's Combined Deed and Mortgage Taxes
Minnesota charges both a deed tax (0.33% of sale price) and a mortgage registration tax (0.23% of mortgage amount). On a $350,000 home with a $280,000 mortgage, that's $1,155 + $644 = $1,799 in state taxes alone. First-time buyers under certain income limits may qualify for a first-time buyer deed tax exemption on the first $500,000.
Use Minnesota Housing Programs
Minnesota Housing Finance Agency offers Start Up loans for first-time buyers and Step Up loans for repeat buyers, both with competitive rates. Down payment assistance up to $18,000 is available through the monthly payment loan program.
Check Torrens vs. Abstract Title
Some Minnesota properties use the Torrens (registered land) system rather than the abstract system. If your property has Torrens title, the process for title examination and transfer is different — your title company will handle this, but expect slightly longer timelines.
Get a Heating System Evaluation
Minnesota winters are severe, and heating costs range from $1,500 to $4,000+ annually depending on the system and insulation. Have the furnace, boiler, or heating system professionally evaluated — replacing a furnace costs $4,000-8,000 and should be factored into your offer.
Legal Context for Minnesota Closings
Conveyance Document
Warranty, limited-warranty, quitclaim, trustee's and personal-representative's deeds (other deeds possible)
Security Instrument
Mortgage
Foreclosure Process
Non-Judicial
Attorney Required
No
Minnesota uses warranty, limited-warranty, quitclaim, trustee's and personal-representative's deeds (other deeds possible) for property transfers and mortgage as the security instrument. While an attorney is not required, you may still choose to hire one.
