Minnesota HELOC Rates and Rules 2026: The 0.23% Registry Tax

HELOC rates in Minnesota right now

Most HELOCs have a variable rate based on the prime rate plus a margin set by the lender. Your margin depends mostly on your credit and how much of your home's value you borrow.

In 2025, the median HELOC in Minnesota opened at 7.50%, and half opened between 6.75% and 8.63%, across 14,312 lines reported under federal HMDA data. The national median was 7.50%. Leaving out lines with a 3 to 12 month introductory rate, the Minnesota median was 7.75%. Home equity loans in Minnesota, which usually have a fixed rate, closed at a median of 7.63%. HELOC rates in every state.

Prime rate, unchanged since September 17, 2026 (Federal Reserve): 7.00%
Median Minnesota HELOC rate at opening, 2025 (HMDA): 7.50%
Average 30-year fixed mortgage rate, week of October 29, 2026 (Freddie Mac): 7.24%

The Federal Reserve raised rates on September 16, 2026, which moved prime to 7.00%. Its October 27 and 28 meeting is more recent than the prime rate data shown here, which runs through October 27, 2026. Its next meeting is December 8 and 9. With 30-year mortgage rates above 7%, a HELOC lets you borrow against your equity without refinancing a lower rate you already have.

How much can you borrow in Minnesota?

Minnesota law doesn't set a home equity borrowing cap. Each lender sets its own limit on all the loans on your home combined, your current mortgage plus the new line.

Budget for one Minnesota cost when the line opens: the mortgage registry tax of 0.23% of the full credit limit, or $230 on a $100,000 line.

Home value ×80% −what you owe now =a likely maximum line

Example

Home value (the Minnesota median for owner-occupied homes): $344,600
80% of value (a common lender limit, not a Minnesota law): $275,680
Current mortgage balance: $180,000
Maximum line of credit: $95,680

Example only. Lenders set their own limits and the final amount after an appraisal, and many approve less than the maximum based on credit and income.

Run your own numbers in our home equity calculator

Minnesota home prices rose every year from 2014 to 2025

On the FHFA House Price Index, Minnesota home prices rose 90.8% from 2014 to 2025, nearly doubling, and went up every single year, with the biggest jumps in 2021 (+12.9%) and 2022 (+8.6%). Prices kept climbing after that: up 3.5% in 2025 and 2.51% in the year to mid-2026, 28th of the 50 states and DC.

Source: FHFA House Price Index, Minnesota, purchase-only, through 2026 Q2.

Chart data as a table

Minnesota House Price Index, annual average (1991 = 100)
Year	Index (1991 = 100)
2014	224.41
2015	233.68
2016	247.36
2017	262.88
2018	279.00
2019	293.69
2020	313.54
2021	353.98
2022	384.51
2023	397.31
2024	413.67
2025	428.25

The Minnesota rules that affect a HELOC, in plain English

Minnesota has no special HELOC limits like a borrowing cap or a waiting period. These Minnesota laws (the Minnesota Statutes) still shape your HELOC.

Taxes when the line opens

0.23% mortgage registry tax.: Minnesota taxes the recording of a mortgage at 0.23% of the debt it secures, and the law makes the borrower liable for it. That is $230 on a $100,000 line.
Figured on the full credit limit.: For a HELOC, the tax is based on the maximum line stated in the mortgage, not on what you draw. If you raise the limit later, the increase is taxed.
A little more in Hennepin and Ramsey.: Hennepin and Ramsey counties add 0.01%, so a $100,000 line there costs $240 in registry tax.

Before you sign

Both spouses sign.: If you are married, a HELOC mortgage on your homestead isn't valid without both spouses' signatures, even if only one of you is on the title.
5% cap on financed lender fees.: Under Minnesota's mortgage originator law, lender fees rolled into the loan can't add up to more than 5% of the credit limit. The registry tax and recording fees don't count toward it.
Use a licensed lender.: Lenders that aren't banks, credit unions or other exempt financial institutions need a license from the Minnesota Commissioner of Commerce.
One recording covers every draw.: A recorded HELOC mortgage that states the maximum line covers all your later draws and repayments, from the day it was recorded.

If you can't pay

Counseling notice first.: Before a foreclosure on an owner-occupied home of 1 to 4 units starts, the lender has to tell you that foreclosure prevention counseling is available and pass your contact details to an approved counseling agency.
Six weeks of published notice.: In a foreclosure by advertisement, which happens outside court, the sale has to be published for six weeks, and a copy served on the occupant at least four weeks before the sale.
Time to redeem.: After the sheriff's sale you generally have six months to redeem the home by paying the sale price plus interest and costs. Some cases get 12 months, and some, such as abandoned homes, get less.
No deficiency after a six-month redemption.: After a foreclosure by advertisement with a six-month redemption period, the lender cannot get a deficiency judgment against you.

Property tax basics

Homestead market value exclusion.: Part of your homestead's value is left out before tax is figured: 40% of the value for homes worth $95,000 or less, then $38,000 minus 9% of the value above $95,000, reaching zero at $517,200.

Minnesota homeowners by the numbers

Median value of an owner-occupied Minnesota home: $344,600; U.S.: $360,600
Minnesota homeowners with no mortgage at all: 37.4%; U.S.: 40.3%
Minnesota households that own their home: 71.6%; U.S.: 65.3%
Median yearly property tax paid in Minnesota: $3,501; U.S.: $3,211

Source: U.S. Census Bureau, American Community Survey 2024 1-year estimates.

One request, multiple Minnesota lenders

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LenderMatch never pulls your credit. A lender you choose to work with may check it, with your permission.

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Frequently asked questions

Do I pay mortgage registry tax on a Minnesota HELOC?

Yes. Minnesota charges 0.23% of the credit limit when the HELOC mortgage is recorded, and the borrower is liable for it. A $100,000 line costs $230, or $240 in Hennepin and Ramsey counties.

Is the registry tax based on what I draw or on the whole line?

The whole line. The tax is figured on the maximum line stated in the mortgage, no matter how much you draw. Raising the limit later is taxed on the increase.

Does my spouse have to sign for a HELOC in Minnesota?

If you are married and the home is your homestead, yes. A mortgage on a homestead isn't valid without both spouses' signatures, even if only one spouse is on the title.

What fees can a Minnesota lender roll into my HELOC?

Under Minnesota's mortgage originator law, lender fees added to the loan can't exceed 5% of the credit limit. Registry tax and recording fees don't count toward that limit.

If my HELOC lender forecloses, can it come after me for the rest?

Not after a foreclosure by advertisement with a six-month redemption period. Minnesota law does not allow a deficiency judgment in that case.

How much have Minnesota home prices risen?

On the FHFA House Price Index, Minnesota prices rose 2.51% in the year to mid-2026 and 24.7% over 5 years. From 2014 to 2025 they rose 90.8%.

Does checking my options with LenderMatch affect my credit?

No. LenderMatch never pulls your credit. A lender you choose to work with may check it, with your permission.

HELOCs in Minnesota: how much you can borrow and the state rules that apply

See what Minnesota lenders could offer you