What are average mortgage rates in Michigan in 2026?

Mortgage rates in Michigan generally track national averages. As of 2026, expect 30-year fixed rates from 5.5% to 7.5% for good credit borrowers. Use CalcDeck's Michigan mortgage calculator to model your payment at current rates.

How much are closing costs in Michigan?

Closing costs in Michigan typically range from 2% to 5% of purchase price, including lender fees, title insurance, and prepaid items. Use CalcDeck's Michigan mortgage calculator to include closing costs in your calculation.

What are property tax rates in Michigan?

Property tax rates in Michigan range from 0.3% to 2.5% of assessed value. CalcDeck's Michigan calculator includes property tax in your PITI payment.

What first-time homebuyer programs exist in Michigan?

Michigan offers down payment assistance, favorable-rate mortgages, and tax credits through state agencies. Use CalcDeck's Michigan calculator to see how programs affect your payment.

How do I use the CalcDeck Michigan mortgage calculator?

Enter home price, down payment, interest rate, and loan term. Adjust property tax and insurance to match Michigan averages. Get instant monthly payment, total interest, and amortization schedule.

Michigan Mortgage Calculator

Median home prices, property taxes, and monthly payment estimates for Michigan homeowners.

Michigan at a Glance

Median Home Price: $237,000
Property Tax Rate: 1.30%
Median Household Income: $68,017
Annual Property Tax: $3,081

Sources: Zillow ZHVI (2024), Tax Foundation (2023), US Census ACS (2023)

Monthly Mortgage Payment in Michigan

Based on the Michigan median home price of $237,000 at 6.7% interest (30-year fixed):

Payment Breakdown	20% Down	5% Down
Loan Amount	$189,600	$225,150
Principal and Interest	$1,223	$1,453
Property Tax (MI)	$257	$257
Homeowners Insurance	$125	$125
PMI	$0	$94
Total Monthly	$1,605	$1,928

How Much House Can You Afford in Michigan?

Using the 28/36 rule (housing costs under 28% of gross income):

With 20% down, you need ~$68,794/year to afford Michigan's median home
With 5% down, you need ~$82,646/year
Michigan's median household income is $68,017

Michigan insight: Michigan's property tax rate of 1.30% is near the national average.

Michigan Housing Market Overview

Michigan's housing market is recovering from decades of stagnation in Detroit while Grand Rapids and Ann Arbor boom. The statewide median of $237,000 reflects Detroit at $85,000, Grand Rapids $285,000, and Ann Arbor $415,000. Inventory sits at 3.0 months—more balanced than coastal states. The median household income of $68,017 yields a price-to-income ratio of 3.5, very affordable. The effective property tax rate of 1.30% costs about $3,081/year on a median home, though Detroit's effective rate exceeds 2.5% due to low values and high levies. Auto industry investment (EV battery plants in Marshall and Lansing) is driving growth in southern Michigan. Lakeshore properties in Traverse City and Holland command premiums.

First-Time Homebuyer Programs in Michigan

The Michigan State Housing Development Authority (MSHDA) offers the MI Home Loan program, providing 30-year fixed-rate FHA, RD, or conventional mortgages with down payment assistance up to $10,000. The MI Home Loan Flex program offers similar terms but is available statewide with more flexible credit requirements. MSHDA also offers the Down Payment Assistance program, providing up to $10,000 in grants for eligible buyers in targeted census tracts. The Mortgage Credit Certificate (MCC) provides a 20% federal tax credit on mortgage interest. City programs include Detroit's Home Repair Program (up to $25,000 for renovation) and Grand Rapids' First Time Homebuyer Program ($5,000 grants). Income limits: Wayne County caps at $76,000 for a two-person household; rural counties cap at $68,000.

Tips for Homebuyers in Michigan

1) Michigan's 1.30% property tax is moderate statewide, but Detroit properties can face effective rates over 2.5% due to low assessments—always verify actual tax bills. 2) Winterizing is essential—budget $200–$400/month for heating (natural gas) in January/February. 3) Buy in fall/winter (November–February) for the best deals; sellers are motivated before the holidays. 4) Basement flooding is common in Michigan; check sump pumps, drainage, and whether the basement has a history of water intrusion. 5) Lead water service lines are prevalent in Detroit, Flint, and older suburbs—check with the municipality and consider filtration. 6) Lake-effect snow loads require robust roofing in western Michigan; get a roof inspection in Allegan, Ottawa, and Muskegon counties.

Try the Mortgage Calculator with Your Numbers

Michigan Mortgage FAQ

What is the median home price in Michigan?

The median home price in Michigan is approximately $237,000 as of 2024 (Zillow ZHVI). Your actual price will vary by city and neighborhood.

What is the property tax rate in Michigan?

The effective property tax rate in Michigan is approximately 1.30% (Tax Foundation). On a $237,000 home, that is about $3,081/year in property taxes.

How much income do I need to buy a home in Michigan?

Using the 28/36 rule with 20% down at 6.7%, you would need about $68,794/year to afford the median Michigan home at $237,000. With 5% down (including PMI), about $82,646.

What will my monthly mortgage payment be in Michigan?

On Michigan's median home price of $237,000 with 20% down at 6.7%, your total monthly payment (P and I plus tax plus insurance) is approximately $1,605. With 5% down including PMI, about $1,928.

Data sources: Zillow ZHVI typical home values (2024), Tax Foundation effective property tax rates (2023), US Census Bureau ACS median household income (2023). Mortgage rate assumption: 6.7% APR 30-year fixed. This is an estimate — use our calculator for personalized numbers.