Updated: January 8, 2025
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The current mortgage refinance rates in Michigan are 6.09% for a 15-year fixed loan and 6.7% for a 30-year fixed loan, below the national averages of 6.12% and 7.08%, respectively.
We provide the latest insights and practical advice on refinancing your mortgage in Michigan, covering everything from today's rates by credit score to tips on when and how to refinance.
MoneyGeek used Zillow data for the rates on this page. Because mortgage rates shift daily, we use a snapshot 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 noted otherwise, featured rates are annual percentage rates (APRs).
This data was last updated in December 2024.
The current 30-year refinance rate in Michigan is 6.7%. The state's average mortgage debt was $155,835 as of September 2023, according to Experian.
If your existing rate is higher, refinancing your mortgage at 6.7% could lower your monthly payments and reduce the total interest over the life of the loan. Below are the current refinance rates in Michigan to help you explore your options.
| 15-Year Fixed | 5.97% | 6.09% |
| 30-Year Fixed | 6.62% | 6.70% |
In December 2024, the 15-year refinance rate in Michigan increased to 6.09% from 5.99% in November, while the 30-year refinance rate rose to 6.7% from 6.6%.
Data from 2024
Interest rates rise due to Federal Reserve policies and economic conditions. These also affect refinance rate trends in Michigan. Understanding these influences can help you anticipate rate changes.
Refinancing your mortgage in Michigan can reduce your interest rate or monthly payments. Understanding the steps will help you make informed decisions. Here's how to make refinancing work for you.
Credit scores influence the rates you qualify for; a higher score means better rates. If your score is low, consider paying down debt or disputing errors. Michigan's average credit score is 719, according to Experian.
Compare your mortgage terms to Michigan's 30-year (6.7%) and 15-year (6.09%) rates. If these rates are lower and you plan to stay in your home long-term, refinancing may be worthwhile.
Prepare documents like tax returns, pay stubs and bank statements. This expedites refinancing by providing lenders with essential information about your original mortgage.
Compare lenders for the best rates, fees and customer service. Look for transparency in terms, competitive rates and a good reputation to get the best refinancing deal.
Be aware of closing costs, appraisal fees and application fees. Michigan's average is $4,378, according to the National Association of Realtors.
Submit your application with the chosen lender and provide all required documents. Staying organized can streamline the process and speed up approval.
Secure your rate to avoid fluctuations before closing. A mortgage rate lock can help ensure your rate remains unchanged.
Finalize the loan by signing documents and paying any remaining fees. Before signing, ensure you understand all terms and conditions to make this step smoother.
Begin payments according to the new loan terms. Setting up automatic payments can help ensure timely payments, maintain your credit score and avoid late fees.
Continuously assess your mortgage terms against market rates. Staying informed can help you identify future refinancing opportunities and ensure you always have the best possible terms.
In Michigan, how soon you can refinance a mortgage depends on the loan type. Conventional loans allow immediate refinancing, but a cash-out refinance usually requires a six-month seasoning period. USDA loans typically require a 12-month waiting period before refinancing.
The average refinance rate in Michigan dropped to 6.05% in October, a good example of when to refinance, as lower rates can lead to savings. However, refinancing comes with additional closing costs, which may take years to recover. So, while you could refinance a mortgage within a year, it’s usually not worth it unless there's a drastic interest rate reduction.
Refinancing your mortgage can lower your monthly payments, but watch out for closing costs that might offset these savings. Knowing when to refinance a mortgage in Michigan ensures you maximize financial benefits. Explore the following scenarios where refinancing could be beneficial.
Refinancing when interest rates are lower can reduce monthly payments. To find the best rates, consult local banks and credit unions, which often offer competitive rates.
Refinancing when your property's value increases can boost home equity. Enhancing curb appeal with landscaping can raise value. With Michigan's average home value at $250,534, this can lead to better loan terms.
A better credit score can qualify you for lower rates. Paying bills on time and reducing debt can improve your score.
Refinancing to a shorter loan term can reduce the total interest and help you own a home sooner.
Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage provides stability. A fixed rate protects against market fluctuations, ensuring consistent payments.
Use MoneyGeek's free mortgage refinance calculator to determine whether refinancing is beneficial for your situation.
Make sure refinancing your existing home loan will save you money.
Total Savings:
By refinancing, you’ll pay $0
Your credit score affects the rates you qualify for. Michigan's current average refinance rate for a 30-year fixed-rate loan with a loan-to-value ratio of 80% or lower is 6.98% for credit scores between 680 and 740, compared to 6.7% for scores above 740. The table below shows average APRs for various credit scores and loan types.
| 6.15% | 6.33% |
Loan type also affects the rates you qualify for. Michigan's current average refinance rates are 6.7% for a 30-year fixed-rate loan and 8.06% for a 30-year FHA fixed-rate loan. The table below shows average APRs for various loan types.
| 6.06% | 6.25% |
Understanding refinance rates in Michigan can be tricky due to fluctuating rates and economic changes. To help you, we answer common questions about refinancing.
Refinancing can lower your interest rate, reduce monthly payments or switch you to a fixed-rate loan. Weigh the costs and your plans to stay in the home before deciding.
To secure the best refinance rate, improve your credit score, compare offers from multiple lenders and consider paying down your mortgage to reduce your loan-to-value ratio.
Refinancing offers benefits like interest savings, lower payments and the ability to switch loan types. Drawbacks include closing costs, extended loan terms and potential loss of equity.
Refinancing costs typically range from 2% to 5% of the loan amount and may include closing costs, appraisal fees and other charges.
Michigan's current average refinance rates are 6.09% for a 15-year fixed loan and 6.7% for a 30-year fixed loan. Rates in Detroit are likely to reflect these state averages, but the rate you qualify for may vary based on factors like your credit score and loan-to-value ratio.
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.
