Michigan Mortgage and Refinance Rates

Current mortgage rates in Michigan

As of Monday, May 13, 2024, current interest rates in Michigan are 7.00% for a 30-year fixed mortgage and 6.60% 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 $224,900 in Feb. 2024, according to ATTOM — a 7.1 percent increase year-over-year. Of course, the numbers vary greatly depending on locale: Detroit’s median sale price was $110,000 and nearby Ann Arbor’s median price was $482,500. On the west side of the state, Grand Rapids’ median sale price was $281,822. 

Refinance rates in Michigan

In recent years, mortgage rates in Michigan have increased tremendously, both for purchase loans and refinances. However, home prices have followed suit, increasing homeowners’ equity — up $21,000 on average in 2023. Michigan homeowners who’ve seen their equity rise in recent years might be interested in refinancing their mortgage to tap those funds.

Michigan mortgage rate trends

Michigan mortgage rates have followed national trends, rising throughout 2022 to peak in the fall of 2023. Since then, rates have moderated downward. Experts expect rates to decrease further in 2024 and 2025.

National mortgage rates by loan type

Mortgage statistics for Michigan

Michigan’s housing market has seen steady growth over the past few years. 

• Most affordable counties, Feb. 2024: Gogebic, Luce, Iron, Ontonagon, Oscoda
• Median home sales price, Feb. 2024: $224,900
• Median down payment, Feb. 2024: $19,950
• 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 credit score of 620 and a debt-to-income (DTI) ratio 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) premiums, 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.

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 up to $10,000. To qualify, you’ll need a minimum credit score of 640 (or 660 if buying a multiple-section manufactured home), and your household’s income can’t exceed these 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.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
• 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.
• 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.

Read more from Jeff Ostrowski

Edited by: Troy Segal, Senior Editor, Home Lending

I’ve been writing and editing stories in the personal finance sphere for two decades, for publications like Business Week and Investopedia, covering everything from entrepreneurs to taxes. Since coming to Bankrate, I’ve concentrated on real estate, mortgages, renovations and other financial aspects of homeownership — helping people understand how a home isn’t just a place to live, but an investment that’s important to building and bequeathing wealth. 

Read more from Troy Segal