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Mortgage rates in Michigan

Rates that have recently started to trend above the national average.


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Mortgage rates during the coronavirus

As mortgage rates fall to record lows in the wake of COVID-19, our partners are seeing an increase in demand for loans and refinancing. As they work through this influx of applications, you may see rates that are higher than expected — or no rates at all. We recommend comparing offers from multiple lenders to ensure you're getting the best deal possible.

Compare mortgage lenders in Michigan

The Wolverine State’s 30-year loans average 4.846%. And its rates are expected to come in at or above 4% in 2020.

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 type15-year average rate30-year average rate
USDANot available4.875%

Based on data from

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.

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 rateMedian loan amountEstimated monthly cost
Ann Arbor4.695%$235,000$1,220
Battle Creek4.923%$115,000$610
Bay City4.956%$85,000$450
Grand Rapids-Kentwood4.786%$175,000$920
Lansing-East Lansing4.810%$135,000$710
South Bend MSA (Cass County, MI)4.852%$145,000$770

Based on data from
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.

  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.

Historical mortgage interest rates in Michigan

Bottom line

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.

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