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Michigan Mortgage Calculator

The median home price in Michigan is $250,000. With a 20% down payment at the state's average 30-year fixed rate of 7.08%, your estimated all-in monthly payment (principal, interest, taxes, and insurance) is approximately $1,771. Michigan's property tax rate of 1.54% annually is above the U.S. national average of 1.07%.

A buyer earning Michigan's median household income of $67,000 would dedicate roughly 32% of gross monthly income to housing — moderately stretched by the standard 28% guideline.

Median Home Price

$250,000

Avg 30-yr Rate

7.08%

Property Tax Rate

1.54%/yr

Est. Monthly PITI

$1,771

Mortgage Calculator

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Total Monthly Payment

$1,770.53

Principal & Interest$1,341.37
Property Tax$320.83
Home Insurance$108.33
Total$1,770.53

Loan Amount

$200,000

Total Paid

$482,892

Total Interest

$282,892

How to Get a Mortgage in Michigan

  1. 1 Check your credit score. In Michigan, most conventional lenders require 620+; FHA allows 580+ with 3.5% down.
  2. 2 Save for your down payment. On a $250,000 Michigan home, 20% down is $50,000 — avoiding PMI and reducing your monthly payment.
  3. 3 Get pre-approved from 2–3 lenders. Rates in Michigan average 7.08%, but shopping lenders often saves 0.25–0.5%.
  4. 4 Account for closing costs — typically 2–5% of the loan amount, or $6,000–$10,000 on a median Michigan purchase.
  5. 5 Budget for ongoing costs: Michigan property taxes average 1.54%/yr ($3,850/yr on the median home), plus homeowner's insurance averaging $1.300/yr.

Monthly Cost Breakdown — Median Michigan Home

Principal & Interest (7.08%, 30yr, 20% down) $1,341
Property Tax (1.54%/yr) $321
Homeowner's Insurance $108
Total PITI $1,771

Excludes HOA fees, PMI (not required with 20% down), and utilities.

Michigan Mortgage FAQs

What is the average home price in Michigan?

The median home price in Michigan is $250,000 (2024 estimate). With a typical 20% down payment of $50,000, a buyer would finance $200,000 at a 30-year fixed rate.

What are property taxes like in Michigan?

Michigan has an average effective property tax rate of 1.54% of assessed home value. On a $250,000 home, that's approximately $3,850 per year ($321/month) — above the national average of 1.07%.

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

To keep housing costs at or below the recommended 28% of gross monthly income on a median-priced Michigan home, you'd need to earn roughly $75,880 per year. The state's median household income is $67,000, meaning the typical household allocates about 32% of gross income to housing — moderately stretched.

What is the average mortgage rate in Michigan?

The average 30-year fixed mortgage rate in Michigan is approximately 7.08% (2024 average). Rates vary by lender, credit score, loan-to-value ratio, and loan type. Borrowers with credit scores above 740 typically qualify for the best available rates.

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