Mortgage Rates in Prior Lake, Minnesota — March 2026
Updated March 2026 | Based on Prior Lake market data and regional lending conditions
Prior Lake is a growing city in Minnesota with a population of 27,590. The current 30-year fixed mortgage rate in Prior Lake is 6.82%, which is 0.17% above the national average. With a median home price of $295,000 and a 20% down payment of $59,000, homebuyers can expect a monthly principal and interest payment of approximately $1,542.
Current Mortgage Rates in Prior Lake, MN
Below are the current average mortgage rates available in the Prior Lake 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 | 6.82% | 6.65% | +0.17% |
| 15-Year Fixed | 6.04% | 5.89% | +0.15% |
| 5/1 ARM | 6.29% | 6.15% | +0.14% |
| FHA | 6.53% | 6.25% | +0.28% |
| VA | 6.28% | 6.05% | +0.23% |
| Jumbo | 7.07% | 6.85% | +0.22% |
Prior Lake Housing Market Overview
The Prior Lake housing market offers relatively affordable housing compared to many major cities. The median household income in Prior Lake is $62,000, and the cost of living index is 94.7 (national average = 100). Based on the 28% affordability rule, you would need an income of approximately $77,571 to comfortably afford the median-priced home in Prior Lake, which exceeds the current median household income.
Monthly Payment Breakdown for Prior Lake
Based on the median home price of $295,000 with 20% down ($59,000), here is what you can expect to pay monthly in Prior Lake:
15-Year vs. 30-Year Mortgage in Prior Lake
Choosing a 15-year mortgage in Prior Lake at 6.04% instead of a 30-year at 6.82% would save you $195,660 in total interest over the life of the loan. However, your monthly payment would be $1,997 instead of $1,542 — an increase of $455 per month.
Calculate Your Prior Lake 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 Prior Lake
What are the current mortgage rates in Prior Lake, MN?
As of March 2026, the average 30-year fixed mortgage rate in Prior Lake, Minnesota is 6.82%, while the 15-year fixed rate is 6.04%. FHA loans average 6.53% and VA loans 6.28%. These rates are 0.17% above the national average of 6.65%.
How much is a monthly mortgage payment in Prior Lake?
Based on the median home price of $295,000 with 20% down, the estimated monthly mortgage payment in Prior Lake is $1,542 for principal and interest. Including property taxes of $268/month, the total monthly housing cost is approximately $1,810.
What income do I need to buy a home in Prior Lake?
Using the 28% rule, you would need an annual income of approximately $77,571 to afford the median-priced home in Prior Lake at $295,000. The median household income in Prior Lake is $62,000. This means most households would need to either earn above the median or consider homes below $295,000.
Is Prior Lake a good place to buy a home in 2026?
Prior Lake offers a below-average cost of living with a cost of living index of 94.7 (national average = 100). The property tax rate in Minnesota is 1.09%, which is near the national average. Prior Lake has a population of 27,590 and offers a very affordable lifestyle.
Mortgage Rates in Other Minnesota Cities
Related Tools & Guides
Last updated: March 2026. Rates are approximate averages based on regional lending data for the Prior Lake, Minnesota area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.