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.
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
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
What to do when your mortgage forbearance period ends
The first Americans who put their mortgage into forbearance in 2020 may be just a few months away from the end of that relief. Here’s what you need to know if you’re one of them.
How President Biden’s administration can affect mortgage rates
Biden took office on Wednesday, but interest rates didn’t seem to take much note. Here’s the outlook for the year ahead.
Best debt consolidation loans of 2021
Compare 6 lenders to find one that’s a good fit for your needs.
Is the low-rate mortgage window closing?
Industry experts predict mortgage rates will move past 3% this year, but that doesn’t mean refinancing is off the table.
Should you refinance your FHA to a conventional loan?
Is it time to refinance your FHA to a conventional loan?
Electric vehicles in 2021: How new models, insurance rates and tax breaks affect their cost to own
See average EV insurance rates for 2021 based on Finder’s car model research, plus new models on the horizon.
How to apply for a Second Draw PPP loan
You only have until the end of March to get your next application in.
How to get rid of Private Mortgage Insurance (PMI)
Smart strategies that homeowners can use to get rid of Private Mortgage Insurance (PMI).
US mortgage statistics
We take a look at national home loan data & trends and speculate where the mortgage market is heading.
Consumers Credit Union CD review
You need to be a member to access this credit union’s high interest rate options.
Ask an Expert