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Mortgage rates in Michigan

Interest rates on a 30-year $300,000 conventional mortgage start at around 3.500%

If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.625% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your Michigan home will depend on several factors, including your credit score, loan amount and lender.

Rates were last checked on January 10 and are from the Consumer Financial Protection Bureau (CFPB) website.

Your credit score affects the rate you’ll get

People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in Michigan by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).

Credit score $200,000 mortgage $300,000 mortgage $400,000 mortgage $500,000 mortgage
620-639 4.250% 4.250% 4.250% 4.250%
640-659 4.125% 4.125% 4.125% 4.063%
660-679 4.000% 4.000% 4.000% 4.000%
680-699 3.750% 3.750% 3.750% 3.750%
700-719 3.750% 3.750% 3.625% 3.625%
720-739 3.625% 3.625% 3.500% 3.500%
740-759 3.500% 3.500% 3.500% 3.500%
760-779 3.500% 3.500% 3.500% 3.500%
780-799 3.500% 3.500% 3.500% 3.500%
800+ 3.500% 3.500% 3.500% 3.500%

*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage

Interest rates vary by lender

Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.

Comparing lenders can help you find the best deal. Select See rates to provide the company with basic property and financial details for personalized rates.

Name Product Loan products offered State availability Min. credit score
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
AmeriSave
(NMLS #1168)
AmeriSave
Conventional, Jumbo, FHA, VA, USDA, Refinance
Not available in: NY
620
Great customer reviews and customized rate quotes in three minutes with no SSN needed.
SoFi
(NMLS #1121636)
SoFi
Conventional, Home equity, Refinance
Not available in: HI, MO, NM, NY
620
No hidden fees, multiple loan terms, and member discounts available.
Veterans United
(NMLS #1907)
Veterans United
Conventional, FHA, VA, USDA, Jumbo, Refinance
Available in all states
620
Veterans United stands out from other lenders for its focus on serving the military community.
Better
(NMLS #330511)
Better
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
620
Online preapproval in minutes and no origination fees with this direct lender.
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Compare up to 4 providers

Interest rates also vary by loan type

The type of loan you get can also affect how much you pay for your Michigan home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.

Loan type $200,000 mortgage $300,000 mortgage $400,000 mortgage $500,000 mortgage
15-year conventional 2.750% 2.625% 2.625% 2.625%
30-year conventional 3.750% 3.750% 3.625% 3.625%
15-year FHA 3.125% 2.875% Not eligible Not eligible
30-year FHA 3.500% 3.500% Not eligible Not eligible
15-year VA 3.250% 3.063% 3.000% 2.938%
30-year VA 3.500% 3.500% 3.500% 3.500%

*Based on a 10% down payment, fixed interest rate and 710 credit score

Research ahead of time to get the best rates

Give yourself a better shot at securing a more competitive mortgage rate by following these tips.

  1. Compare loan products. Look carefully at each lender’s mortgage programs. Different loan types may have different interest rates. Explore what loan options you qualify for.
  2. Flex your credit muscles. Lenders want to see borrowers with good to excellent credit profiles. Take some time to pay down existing debt before applying for a loan to improve your chance of a better rate.
  3. Keep closing costs in mind. Lenders may advertise a low rate, but quietly charge you higher closing costs. Closing costs in Michigan typically average between 1.44% to 2.89% of the final purchase price. Make sure you know the actual cost of your loan by weighing the closing costs.

Home values in Michigan are forecast to increase

Michigan’s home values are predicted to keep rising throughout 2022, according to Zillow, with the biggest increase coming to the port town of Muskegon at 14.5%. The size of the increase depends on the city and can vary wildly. For example, Detroit’s home values are forecast to rise by as much as 13.5%, while Mount Pleasant’s values may only increase by 6.7%.

And whether you plan to buy in springtime when there are more houses listed for sale or during the winter when you can sometimes find a good deal, prepare for a bidding war. Competition for housing in Michigan has been fierce, with most people paying over listing price to take advantage of lower interest rates.

4 fast facts about the Michigan housing market

If you’re planning a move and Michigan’s on your “maybe” list, consider the following facts while you shop around for a mortgage:

  1. Michigan property taxes are fairly high, averaging 1.54% across the state and ranking 14th in the US.
  2. Michigan closing costs are generally lower, falling below the national average and averaging $4,210.71 after taxes.
  3. Check to see if the home you want to buy in Michigan gets its water from the city or from a private well, which could mean annual testing and maintenance and seller-funded inspections at the time of purchase.
  4. The cost of living in Michigan is generally cheaper than the national average.

Bottom line

Mortgage rates in Michigan vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.

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