Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Mortgage rates in Michigan
Rates that have recently started to trend above the national average.
The Wolverine State’s 30-year loans average 4.846%. And its rates are expected to come in at or above 4% in 2020.
Compare mortgage lenders and brokersCompare these lenders and lender marketplaces by the type of home loan you're searching for, state availability and minimum credit score (for a conventional loan). Select See rates to provide the company with basic property and financial details for personalized rates.
How much do Michigan rates vary by loan type?
In 2018, 30-year mortgage rates in Michigan range from 4.752% to 4.995%. Lenders consider various criteria when calculating your mortgage rate, such as the length of the loan. Mortgages that last 15 years usually have lower rates than their 30-year loans.
2018 average rates in Michigan by loan type
|Loan type||15-year average rate||30-year average rate|
Based on data from ffiec.cfpb.gov.
For example, a $145,000 conventional mortgage with a 30-year loan term might cost you about $760 in monthly loan payments, excluding taxes and fees specific to your home loan. But, if you chose a 15-year mortgage, your payments might cost $1,123 every month.
Even though the 15-year mortgage has higher monthly payments, you could save $71,664 in interest payments over the life of the loan.
Which way are rates trending in Michigan?
Average mortgage rates in Michigan will likely stay around the 4% mark in 2020.
Interest rates in Michigan historically came in below average from the rest of the country between 2011 and 2016. Average mortgage rates surpassed the national average in 2017 and 2018.
Since housing authorities are calling for US 30-year mortgage rates to average between 3.55% and 3.90%, Michigan rates should be slightly higher and average about 4% in the upcoming year.
Compare mortgage rates throughout Michigan
Where your home is located can play a part in your interest rate — affecting your monthly payment. Certain metropolitan areas have higher mortgage rates and loan amounts, and cost more to live in.
We examined the data from the Home Mortgage Disclosure Act and estimated what you might pay on the average 30-year mortgage in distinct metropolitan areas throughout Michigan.
|Metropolitan statistical area (MSA)||Average mortgage rate||Median loan amount||Estimated monthly cost|
|South Bend MSA (Cass County, MI)||4.852%||$145,000||$770|
Based on data from ffiec.cfpb.gov.
These estimated amounts do not account for any taxes or fees specific to your mortgage.
How to get the best mortgage rate in Michigan
Give yourself a better shot at securing a more competitive mortgage rate by following these tips.
- 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.
- 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.
- 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.
Historical mortgage interest rates in Michigan
Even though mortgage rates in Michigan have recently risen above the national average, each lender sets its own rates. One way to ensure you are getting the best rate possible is to compare home loans and lenders.
Frequently asked questions
More guides on Finder
How to choose a bank
How to choose a bank when you don’t know where to begin.
Unifimoney account review
Unifimoney lets you spend, save and invest, but it’s only free for high-income individuals.
Does a car loan affect your mortgage application?
Find out how to increase your borrowing power and get approved for a mortgage even if you have a car loan.
Upgrade Rewards Checking review
The free Upgrade Rewards Checking account offers 2% cashback, but you can’t deposit checks.
Group One Platinum Credit Card review
A store card you can only use at the Horizon Outlet online store.
Energy costs by state
Which states have the most expensive and cheapest energy cost?
What happens to my home loan if I die?
Learn about what will happen to your home loan when you die and how to avoid any nasty situations with some pre-planning.
Mortgage brokers versus banks
Check out our guide on the differences between mortgage brokers and bank loan officers. See which one will suit your needs.
Principal Platinum Card review
A store card you can use exclusively at the Horizon Outlet online store.
What influences a property’s value?
From supply and demand through to location, facilities and planned infrastructure projects, there are plenty of factors that can influence property value.
Ask an Expert