Interest Rate
Average home price

Planning to buy a home in Michigan? You’ll want to ensure that you are getting the best rates possible, and your final rate will depend on a wide variety of factors. These include your credit score, your ability to make a down payment, your current level of income, and your debt-to-income ratio.

Get the best mortgage rates in Michigan by checking your credit report for any errors prior to applying for a home loan, and make sure that all of your documentation is ready to submit to a professional mortgage lender so that you can be pre-approved for a loan.

Here’s a quick look at current Michigan mortgage rates:

Loan Program Mortgage Rate APR* 1 Day Change
Conventional 30 year fixed 6.384% 6.456% -0.05%
Conventional 20 year fixed 5.98% 6.048% -0.23%
Conventional 15 year fixed 5.707% 5.833% -0.1%
Conventional 5 year ARM 6.599% 7.689% -0.17%
VA 30 year fixed 5.739% 6.023% -0.03%
VA 15 year fixed 5.28% 5.767% -0.02%
VA 5 year ARM 6.062% 6.945% -0.06%

Data source: ©Zillow, Inc. Use is subject to the Terms of Use

Buying a Home in Michigan

Wondering if now is the time to purchase in Michigan? This could be the perfect time to find your home in the Great Lakes State. Here’s what you need to know before you move:

Where do you want to live? Michigan’s total populations is just under to 10 million, and one in nine people live in the top six biggest cities:

  • Detroit
  • Grand Rapids
  • Warren
  • Sterling Heights
  • Ann Arbor
  • Lansing (state capital)

Next you’ll need to decide how much home you can afford to buy. Michigan ranks 40th in US homes for sale at average price, and 22nd for homes over $1,000,000. Seeking preapproval from a qualified lender can help you figure out what your budget for a new home is.

First-time Homebuyers

First time home buyers are often able to qualify for assistance through programs administered by the Michigan State Housing Development Authority (MSHDA)

MSHDA offers two primary 30-year, fixed-rate mortgage programs that help ease the financial burden for first-time homebuyers, and can be paired with down payment assistance:

  • MI Home Loan (maximum of 2 acres)
  • MI Home Loan Flex (subpar credit allowed on one borrower)

To qualify for these first-time home buyer programs in Michigan, you’ll need:

  • 3% down payment
  • 640 – 660 minimum credit score
  • To meet MSHDA income limits
  • To complete homebuyer education course if you are using the program with down payment assistance

Refinancing in Michigan

You can refinance a home in Michigan to take advantage of favorable Michigan mortgage rates by doing any of the following:

  • Refinance to achieve a lower interest rate
  • Refinance to lengthen the term of your loan
  • Refinance to cash out your home equity
  • Refinance to remove any private mortgage insurance (PMI) mandate

You might be able to qualify for a streamlined refinance if you have a certain type of loan. Ask your lender for more information.


Buying a Home?

Each step-by-step guide is designed to shepherd you through a process from start to finish. Know what to expect and how to proceed, no matter where you are in your home buying journey.

1 The First Step in Buying a Home – Preapproval

What Is a Mortgage Preapproval? | How Much Will My Monthly Payment Be? | How Much Will My Down Payment Be? | How Long Does a Mortgage Preapproval Last? | What Is the Difference Between a Standard Preapproval and an Underwritten Preapproval?

Read More

3 How much money do I need?

How Can I Lower My Mortgage Payment? | How Can I Lower My Closing Costs? | When Do I Pay Out-Of-Pocket Costs? | What are Prepaid Items or Escrows? | What Will My Closing Costs Be?

Read More

4 The Basics of Mortgage

What Documents Need to be Updated During the Home Loan Process? | What Contingencies Do I Need? | How Important is the Closing Date? | Steps in the Loan Process | Understanding Common Mortgage Terms

Read More

5 Finding a Real Estate Agent

What Are the Top 6 Questions to Ask a Real Estate Agent? | Should I Use the Seller's Real Estate Agent? | Are Online Discount Realty Services a Good Idea? | How Much Does a Buyer's Real Estate Agent Cost? | Why Do I Need a Real Estate Agent to Buy a Home?

Read More
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