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Michigan Mortgage and Refinance Rates
Current mortgage rates in Michigan
As of Thursday, October 31, 2024, current interest rates in Michigan are 6.83% for a 30-year fixed mortgage and 6.14% for a 15-year fixed mortgage. Across the state, prices have risen since the COVID-19 pandemic, with housing inventories yet to consistently reach pre-pandemic supply.
The median home sale price in Michigan was $260,000 as of July 2024, according to ATTOM. That’s an increase of 4 percent versus the same time one year earlier. But home prices vary across the state. Detroit's median home price was $113,500, while the median home price in Ann Arbor was $609,000. Declining 30-year mortgage rates could spur more homebuying activity in the state, which might put more pressure on home prices and affect affordability.
Refinance rates in Michigan
As rates have begun a downward trend in the second half of the year, some Michigan homeowners have taken advantage of mortgage refinancing options. More than 5,600 homeowners in The Great Lakes State refinanced in June, according to ATTOM. If you’re one of the more than 20,000 people who took out a purchase loan in the fourth quarter of 2023 — when rates were higher than they are today — you may be in a good position to consider a refinance.
In addition, if you've had your home for a while, you may have a large amount of equity built up. You can use a cash-out refinance to leverage that equity to accomplish other goals, such as a home renovation project.
Michigan mortgage rate trends
Michigan mortgage rates have followed national trends, rising throughout 2022 to peak in the fall of 2023. Rates have moderated downward throughout the summer of 2024, and most experts predict rates to decline further into 2025, although there is no consensus on how low rates will go.
National mortgage rates by loan type
As you compare your options for the right mortgage to finance your home purchase, Bankrate’s data can help you look at how any lender offers you receive stack up against national averages.
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 6.88% | 6.93% |
| 15-Year Fixed Rate | 6.14% | 6.22% |
| 5-1 ARM | 6.14% | 6.94% |
| 30-Year Fixed Rate FHA | 7.00% | 7.04% |
| 30-Year Fixed Rate VA | 6.94% | 6.98% |
| 30-Year Fixed Rate Jumbo | 6.81% | 6.86% |
Rates as of Thursday, October 31, 2024 at 6:30 AM
Mortgage statistics for Michigan
Here’s a look at some data to help inform your search for the right home in Michigan and the right loan:
- Most affordable counties, June 2024: Gogebic, Iron, Lake, Ontonagon, Oscoda, Schoolcraft
- Median home sales price, June 2024: $260,000
- Median down payment, June 2024: $30,700
- Homeownership rate, Q4 2023: 74.1%
Sources: ATTOM, U.S. Census Bureau
Mortgage options in Michigan
If you’re looking to get a mortgage in Michigan, explore these options:
- Michigan conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum 620 credit score and a debt-to-income (DTI) ratio of no more than 43 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI), as well.
- Michigan FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
- Michigan VA loans: If you’re a veteran or active-duty member of the military with full entitlement, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which starts at 2.15 percent for homebuyers obtaining a VA loan for the first time.
- Michigan USDA loans: If you’re a low- to moderate-income buyer who is planning to look for property in a qualifying rural area, loans backed by the United States Department of Agriculture can be worth a look. Fewer lenders offer these loans, but if you can find one, you may be able to score significantly lower mortgage rates.
- Michigan jumbo loans: While Michigan median sales prices are lower than the national average, there are still plenty of high-end properties available in the state — particularly in lakefront areas. If you’re looking to buy a property that exceeds the conforming loan limit, you’ll need to compare jumbo mortgage lenders and be prepared to make a down payment of at least 10 percent.
First-time homebuyer programs in Michigan
The state of Michigan offers mortgage options and first-time homebuyer assistance programs to help make homeownership more affordable.
The Michigan State Housing Development Authority (MSHDA) connects first-time homebuyers, or those who haven’t owned a home in the past three years, with lenders participating in certain lower-cost mortgage programs. This includes the MI Home Loan, available to both first-time homebuyers throughout the state and repeat buyers in targeted areas.
The MI Home Loan program includes down payment assistance of up to $10,000. To qualify, you’ll need a minimum credit score of 640, and your household’s income can’t exceed certain limits. This program is only available to borrowers purchasing a home priced $224,500 or lower.
How to find the best mortgage rate in Michigan
- Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
- Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
- Step 3: Know your mortgage options - There are a few different types of mortgages, some of which are easier to qualify for than others.
- Step 4: Compare rates and terms from several lenders - Use Bankrate to get an estimate of different rates and fees from various mortgage lenders.
- Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.
Additional Michigan mortgage resources
- Michigan loan limits by county: Learn the FHA and conventional loan limits by county for Michigan.
- Michigan mortgage lenders: Compare these Michigan mortgage lenders.
- Mortgage calculator: Estimate your monthly payments based on principal and interest costs. Don’t forget to budget more for other homeownership costs, including property taxes and homeowners insurance.
- Best Michigan homeowners insurance companies: Shop homeowners insurance policies to get the right plan for you.
- How to buy a house in Michigan: Read up on what it takes to buy a house in The Great Lakes State.
- Michigan housing market: Here’s everything you need to know about the residential real estate scene.
- Best homeowners insurance companies in Michigan: Compare policies from providers around the state.
Meet our Bankrate experts
Written by: Jeff Ostrowski, Principal Reporter, Mortgages
I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.
Edited by: Laurie Richards, Editor, Home Lending
I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English.