Michigan Mortgage and Refinance Rates

As of Friday, July 30, 2021, current rates in Michigan are 3.00% for a 30-year fixed, 2.30% for a 15-year fixed, and 2.71% for a 5/1 adjustable-rate mortgage (ARM).

We’ll help you find Michigan mortgage and refinance rates well below the national average so you can apply and start saving on your home today.

About our Mortgage Rate Tables: The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our "Advertisers"). Other lenders' terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a "Next" button that can be used to click-through to the Advertiser's own website or a phone number for the Advertiser.

Availability of Advertised Terms: Each Advertiser is responsible for the accuracy and availability of its own advertised terms. Bankrate cannot guaranty the accuracy or availability of any loan term shown above. However, Bankrate attempts to verify the accuracy and availability of the advertised terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. Click here for rate criteria by loan product.

Loan Terms for Bankrate.com Customers: Advertisers may have different loan terms on their own website from those advertised through Bankrate.com. To receive the Bankrate.com rate, you must identify yourself to the Advertiser as a Bankrate.com customer. This will typically be done by phone so you should look for the Advertisers phone number when you click-through to their website. In addition, credit unions may require membership.

Loans Above $548,250 May Have Different Loan Terms: If you are seeking a loan for more than $548,250, lenders in certain locations may be able to provide terms that are different from those shown in the table above. You should confirm your terms with the lender for your requested loan amount.

Taxes and Insurance Excluded from Loan Terms: The loan terms (APR and Payment examples) shown above do not include amounts for taxes or insurance premiums. Your monthly payment amount will be greater if taxes and insurance premiums are included.

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Michigan mortgage overview

By Zach Wichter

The state of Michigan offers mortgage options and first-time homebuyer assistance programs to help make becoming a homeowner more affordable.

Michigan conventional mortgages: To qualify for a conventional mortgage, you generally must meet the following requirements.

Michigan FHA loans: If you don’t meet conventional loan requirements, you may qualify for an FHA loan. These are backed by the Federal Housing Administration, and the requirements include:

  • Credit score of at least 500
  • 10 percent down payment if credit score is between 500-579
  • 3.5 percent down payment if credit score is 580 or higher
  • DTI between 31 percent and 41 percent

Michigan VA loans: Insured by the Department of Veterans Affairs, VA loans are offered to qualifying veterans and active duty members of the armed forces. VA loans don’t require a down payment or PMI, and can be obtained through a VA-approved lender.

First-time homebuyer programs in Michigan

The Michigan State Housing Development Authority (MSHDA) provides first-time homebuyers, or those who haven’t owned a home in the past three years, options to help purchase a home.

MI Home Loan

The MI Home Loan, also known as the Michigan Down Payment loan, is available to both first-time homebuyers throughout the state and repeat buyers in targeted areas, provides down payment assistance up to $7,500. To qualify, borrowers are required to:

  • Apply through an eligible lender, found on the MSHDA website
  • Complete a homebuyer education course
  • Have a minimum credit of 640 (660 for multiple-section manufactured homes)
  • Meet household income limits, which vary based on household size and location, and the sales price limit ($224,500 as of June 2020)

Also offered by the MSHDA is the MI Home Loan Flex, another down payment assistance loan with similar requirements, but available to first-time homebuyers and repeat buyers throughout the state.

With the MI Home Loan Flex, borrowers “do not necessarily need” to have paid off collections or judgement against them to qualify, but their credit score does need to meet a minimum of 660.

Michigan Mortgage Credit Certificate (MCC)

The Michigan Mortgage Credit Certificate (MCC) allows first-time homebuyers throughout the state and repeat buyers in targeted areas to claim a federal tax credit for the interest on their mortgage. The credit is worth up to 20 percent of the interest paid yearly, and can be claimed each year for up to 30 years.

Michigan mortgage refinancing

With interest rates at record lows, Michigan borrowers may be interested in refinancing their mortgage into a new one with a lower rate. Use Bankrate’s mortgage refinance calculator to see how much you can save by lowering your rate.

Michigan mortgage resources