Market Overview: North Dakota Housing Mid-Range
North Dakota ranks as a mid-range housing market, with a median home price of $269,509. The state's effective property tax rate of 0.90% is lower than the national average of 1.00%, and annual homeowners insurance averaging $2,709 falls above the US median of $2,201.
These three factors — price level, tax burden, and insurance costs — combine to shape the true monthly cost of homeownership in North Dakota. Below we break down a realistic purchase scenario using state-specific data.
🏡 Purchase Example: Buying a $269,509 Home in North Dakota
Using the state's median home price of $269,509, a 20% down payment, and a 6.5% 30-year fixed rate, here is the complete picture of what it costs to buy in North Dakota:
| Cost Component | Amount |
|---|---|
| Home Price | $269,509 |
| Down Payment (20%) | $53,902 |
| Loan Amount | $215,607 |
| Estimated Closing Costs (3.5%) | $9,433 |
| Total Cash Needed at Closing | $63,335 |
Monthly Payment (20% Down)
| Item | Monthly |
|---|---|
| Principal & Interest | $1,363 |
| Property Taxes (0.90%) | $202 |
| Homeowners Insurance | $226 |
| PMI (not needed at 20% down) | $0 |
| Total Monthly Payment | $1,791 |
Annual income needed (28% DTI): $77,000/yr
PMI Scenario: What If You Put Only 10% Down?
With a 10% down payment ($26,951), you'd have a loan of $242,558 and would need to pay Private Mortgage Insurance (PMI) at roughly 0.7% of the loan annually:
| Item | 10% Down | 20% Down (savings) |
|---|---|---|
| Principal & Interest | $1,533 | $1,363 |
| Monthly PMI | $141 | $0 |
| Total PITI+PMI | $2,103 | $1,791 |
The lower down payment costs you an extra $312/month (P&I + PMI). You would need $91,000/yr to qualify under the 28% DTI rule. PMI can typically be canceled once you reach 20% equity.
First-year interest: In year one, $13,944 of your payments go to interest alone. Over the full 30-year term, you'll pay $274,995 in total interest.
💰 State-Specific Cost Notes for North Dakota
Property taxes in North Dakota are 0.90%, meaning about $2,426/year ($202/month) on the median-priced home.Homeowners insurance in North Dakota averages $2,709/year ($226/month).
Closing costs in a mid-range market like North Dakota typically run 2%–4% of the purchase price — roughly $9,433 on a $269,509 home. This includes loan origination, appraisal, title insurance, escrow fees, and prepaid taxes/insurance.
Monthly Payment on a $269,509 Home in North Dakota
With a standard 20% down payment ($215,607 loan) and a 6.5% interest rate on a 30-year fixed-rate mortgage, your estimated total monthly payment comes to $1,791.
Monthly Payment Breakdown (PITI)
| Component | Monthly Cost | Annual Cost |
|---|---|---|
| Principal & Interest | $1,363 | $16,356 |
| Property Taxes (0.90% est.) | $202 | $2,424 |
| Home Insurance | $226 | $2,712 |
| Total Monthly Payment | $1,791 | $21,492 |
Income Required in North Dakota
Using the standard 28% front-end DTI rule, you'd need a gross annual income of approximately $77,000 to comfortably afford the median-priced home in North Dakota with 20% down at 6.5%.
How Interest Shapes Your Payments
In your first year, approximately $13,944 goes toward interest alone. Over the full 30-year term, you'll pay a total of $274,995 in interest.
Amortization Schedule — First 10 Years
| Year | Principal Paid | Interest Paid | Balance Remaining |
|---|---|---|---|
| Year 1 | $2,410 | $13,944 | $213,197 |
| Year 2 | $2,571 | $13,782 | $210,626 |
| Year 3 | $2,743 | $13,610 | $207,882 |
| Year 4 | $2,927 | $13,426 | $204,955 |
| Year 5 | $3,123 | $13,230 | $201,832 |
| Year 6 | $3,332 | $13,021 | $198,499 |
| Year 7 | $3,556 | $12,798 | $194,944 |
| Year 8 | $3,794 | $12,560 | $191,150 |
| Year 9 | $4,048 | $12,306 | $187,102 |
| Year 10 | $4,319 | $12,034 | $182,783 |
* Full 30-year amortization available in our interactive calculator.
❓ Frequently Asked Questions — Buying a Home in North Dakota
How much income do I need to buy a house in North Dakota?
With the median home price in North Dakota at $269,509 and a 20% down payment, you need roughly $77,000/year based on the 28% front-end DTI rule (total monthly housing costs of $1,791). If you put down 10%, the income requirement rises to about $91,000/year due to the higher loan amount and PMI.
What's the minimum down payment in North Dakota?
While 20% down ($53,902) avoids PMI, many North Dakota buyers opt for lower down payments. FHA loans require as little as 3.5% ($9,433), and conventional loans can go as low as 3%–5% ($8,085–$13,475). However, a 10% down payment ($26,951) would cost you $2,103/month — about $312 more than 20% down — due to PMI and a larger principal.
What are property taxes like in North Dakota?
North Dakota's effective property tax rate is 0.90%, which is moderate the national average of 1.00. On a $269,509 home, you'd pay approximately $2,426/year in property taxes ($202/month).
How much is homeowners insurance in North Dakota?
The average annual premium in North Dakota is $2,709, which is roughly in line with the US median of $2,201. This is a relatively affordable insurance market for homeowners. This adds $226/month to your payment.
What are the total closing costs for a home in North Dakota?
On a $269,509 home in North Dakota, expect to pay about $9,433 in closing costs. Combined with a 20% down payment ($53,902), you'd need approximately $63,335 in cash at closing. First-time buyers in North Dakota may qualify for down payment assistance programs or reduced closing costs through local housing authorities — check your state housing agency for available grants and low-interest loan programs.
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Disclaimer: This is an estimate for informational purposes only. Actual mortgage payments depend on your credit score, exact interest rate, property taxes, insurance premiums, PMI, and other factors. Sources: Zillow Q1 2025 (median home prices), ATTOM 2025 (property tax rates), Quadrant Information Services Feb 2025 (insurance premiums). Consult a qualified mortgage professional for personalized advice. See our full Disclaimer.