Today's Mortgage Rates in Michigan (September 2024)
Updated: October 8, 2024
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Today's 30-year mortgage rate in Michigan is 5.98%, sitting marginally beneath the current national average rate of 6.46% for similar loans. In Michigan, homebuyers have access to beneficial programs like the MI Home Loan and the Mortgage Credit Certificate (MCC) Federal Tax Credit to potentially soften their mortgage costs.
MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot of rates to analyze rate information for Michigan. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources.
Unless specifically noted otherwise, rates featured in content are annual percentage rates (APRs).
This data was last updated in September 2024.
In Michigan, the average APR for a 30-year fixed-rate mortgage is 5.98% in September 2024 from 5.91% the previous month. If you took out a loan for $250,000 with a 20% down payment, the current mortgage rate increase could mean an additional cost of around $3,555 in total interest over the life of your loan, not including extra expenses like property taxes or HOA fees.
Understanding the current mortgage rate in Michigan can help you budget because rates may vary, swayed by economic shifts and Federal Reserve actions. You'll see the trend of rate changes on our line chart, outlining the ebbs and flows over recent months, shaping your payment plans.
Staying up-to-date with today's mortgage interest rates in Michigan benefits both homebuyers and existing homeowners looking to refinance, against the ever-changing backdrop of the housing market:
First-time homebuyers
First-time homebuyers in Michigan can compare current mortgage rates to gauge competitiveness and make informed decisions.
Homeowners with mortgages
Knowing current mortgage rates, homeowners in Michigan might explore mortgage refinancing to potentially lower their payments.
Purchase rates and refinance rates are different — in Michigan, the current mortgage rate for a 30-year fixed loan if you're buying a home is 5.98%, while it's a higher 6.40% if you're refinancing. Keep this in mind as you weigh your options for a mortgage or refinancing in the state.
A 30-year fixed-rate mortgage in Michigan often has a higher rate than a 15-year fixed-rate mortgage. The longer loan term means more risk for the lender — more time allows for changes in interest rates and the possibility of non-payment. Different mortgage loan types in Michigan can influence the rate you get.
You'll want to use a mortgage calculator to see how different rates affect your monthly payments. It’s a tool that can help you understand your payment schedule over the life of your loan. Plus, comparing rates with a mortgage calculator aids in making a decision that aligns with your finances.
| 5.25% | 5.48% |
The interest rate is the cost each year to borrow money for a mortgage. In Michigan, you're looking at an average mortgage interest rate of 5.90% for a 30-year fixed-rate mortgage.
The annual percentage rate, or APR, is the interest rate with all the extra fees included, like mortgage points and other charges. For this same type of mortgage in Michigan, the average APR is slightly higher at 5.98%, giving you a clearer picture of the yearly expense related to your loan.
For a solid credit score of 740 or more in Michigan, you're looking at an average APR of 6.62% for a 30-year fixed mortgage with a down payment ranging from 5% to 20%. If your score is under 680, that average APR jumps to 6.97%.
Your credit score can shape the mortgage rates you're eligible for in Michigan. To see rates tailored to your credit score and down payment, check out the interactive table below:
| 10-year Fixed | 5.80% |
| 15-year Fixed | 5.40% |
| 20-year Fixed | 6.08% |
| 30-year Fixed | 6.26% |
| 5-year ARM | 7.59% |
| 7-year ARM | 7.53% |
In September 2024, 30-year fixed-rate VA loans have the lowest average APR for 30-year fixed-rate mortgages in Michigan at 5.89%. Knowing your mortgage options can help you make a better decision for your financial future. Explore the table below with the different mortgage loan types available in Michigan.
Mortgage Type | Definition | Impact on Rates | 30-Year Rates in Michigan |
|---|---|---|---|
Conventional Loans | Conventional loans in Michigan are standard home financing without government backing. | Credit profile and down payment size can influence the rates you receive on a conventional loan. | 5.98% |
FHA Loans | FHA loans in Michigan offer lower down payments and are backed by the Federal Housing Administration. | Lower credit scores can be accepted for FHA loans, possibly leading to higher interest rates. | 6.62% |
VA Loans | VA loans in Michigan are for veterans, offering favorable terms with no down payment, backed by the Department of Veterans Affairs. | VA loans often have competitive rates due to government backing and no required down payment. | 5.89% |
USDA Loans | USDA loans in Michigan are for rural homebuyers and are guaranteed by the USDA. | The high loan amounts of jumbo loans may result in higher interest rates due to increased lender risk. | currently unavailable |
Jumbo Loans | Jumbo loans in Michigan are used for expensive properties that exceed the limits of conventional loans. | Jumbo loans may have higher rates because they pose a greater risk to lenders due to their size. | 6.30% |
Mortgage rates in Michigan are split into two categories: fixed and adjustable.
As of September 2024, the average APR in Michigan is 5.98% for a 30-year fixed-rate mortgage and 7.34% for a seven-year adjustable-rate mortgage.
First Midwest Bank, Better and U.S. Bank stand out as solid options for securing a mortgage in Michigan. These lenders are accessible in Michigan and have been selected based on their Better Business Business Bureau accreditation and their homeowner assistance programs. Remember, our list is not exhaustive and other lenders may fit your needs.
Your mortgage rate in Michigan can vary based on the lender you choose as each offers distinct mortgage options and loan terms. To find the best possible deal, compare rates from several lenders — a step that could save you money over the life of your loan.
First Midwest Bank services the Michigan area with both online and in-person options, catering to a range of needs with products like conventional and FHA loans. For the more community-oriented options, such as Community Experts and Heroes, a 720 credit score is the standard, and the advantage is significant with down payments as low as 0% for Community Experts and 1% for Community Heroes.
First Midwest Bank has customer service hours from Monday to Friday, 8 am to 7 pm ET, and Saturday from 8 am to 1 pm ET through phone or in-person channels. First Midwest Bank steps up to assist homeowners too, offering programs like Home Manager and Down payment Assistance Programs that open doors to home ownership for many.
Pros
Cons
U.S. Bank serves Michigan residents with a variety of mortgage options including conventional, FHA, VA, jumbo loans, investment property and construction loans. For those keen on ARMs or jumbo loans, the minimum credit score requirement stands at 660, while an FHA loan will require a minimum score of 640. Down payments start low with 3% for conventional loans and 3.5% for FHA. VA loans are an option for eligible veterans and service members wanting to buy a home with no down payment.
You can reach its customer service team Monday to Friday from 7 am to 8 pm CT and on Saturdays from 8 am to 2 pm CT, through video calls, phone conversations or in-person meetings. U.S. Bank offers homeowners assistance programs including forbearance, repayment plans, loan modification and payment deferral. Additionally, it stands as the top HELOC lender for bad credit in most states.
Pros
Cons
Better is a mortgage lender that serves Michigan borrowers exclusively online, offering several mortgage options including fixed- and adjustable-rate mortgages. For a fixed-rate mortgage, the minimum credit score required is 620 while the minimum for an FHA loan is lower at 580. Expect to pay as little as 3% down if applying for non-FHA loans and your credit score exceeds 580, and a minimum of 3.5% if opting for FHA loans.
You can receive support from Better through phone or email with customer service hours running from Monday to Friday between 8 am and 9 pm ET, and over the weekends from 9 am to 9 pm ET. If you're exploring ways to reduce the costs associated with buying a home, the Better Real Estate discount may offer valuable savings. Better maintains a strong presence in the lending space and is known for its streamlined, tech-driven approach to the mortgage process, making it a competitive choice for modern borrowers.
Pros
Cons
Owning your own home includes hidden costs that might surprise you. In Michigan, you can get assistance from the Michigan State Housing Development Authority. They offer mortgage programs to support you in managing home-related finances.
Program | Content |
|---|---|
MI Home Loan | The MI Home Loan simplifies the path to homeownership across Michigan. Geared towards first-time buyers and some repeat buyers, it features income limits and a maximum home sale price of $224,500. It also offers a down payment assistance up to $10,000 for those who attend a Housing Education class and have a credit score of at least 640. |
Mortgage Credit Certificate (MCC) Federal Tax Credit | The Mortgage Credit Certificate (MCC) Federal Tax Credit benefits Michigan residents eyeing homeownership. Primarily for first-time buyers, it grants a yearly federal tax credit valued at 20% of your mortgage interest. This program also imposes income and sales price ceilings, influenced by family size and purchase location. |
Many borrowers have questions about today's mortgage rates in Michigan. We've addressed commonly asked questions to help you understand the current rates and make informed decisions during your home-buying process.
Current average APRs in Michigan vary based on loan type and other factors. For instance, a 30-year fixed conforming loan is averaged at 5.98%, whereas a 7-year ARM jumbo loan has an average APR of 7.46% as of September 2024.
Michigan's current average APRs for a 5-year adjustable-rate mortgage and a 30-year fixed-rate mortgage are 7.55% and 5.98% respectively, as of September 2024. Comparatively, the national rates stand at 7.93% for the 5-year adjustable-rate mortgage and 6.46% for the 30-year fixed.
A higher credit score typically leads to low mortgage rates in Michigan. Lenders consider those with better credit scores as lower risk, which often results in more favorable mortgage terms.
Yes, there are several mortgage programs available in Michigan. For example, the MI Home Loan, Mortgage Credit Certificate (MCC) Federal Tax Credit and other assistance programs cater to first-time homebuyers and those meeting specific criteria.
To secure the best mortgage rate in Michigan, consider a larger down payment, improve your credit score and shop around to compare offers from multiple lenders.
The average refinance rates in Michigan for a 30-year fixed loan and a 15-year fixed loan are 6.40% and 5.73% respectively, as of September 2024.
Use a mortgage calculator for Michigan to estimate your payments, including principal, interest, taxes, and insurance.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
