Michigan Mortgage and Refinance Rates
As of Monday, September 27, 2021, current rates in Michigan are 3.03% for a 30-year fixed, 2.32% for a 15-year fixed, and 2.75% for a 5/1 adjustable-rate mortgage (ARM).
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money.
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.
- Credit score of at least 620
- Debt-to-income ratio (DTI) of no more than 45 percent
- Down payment of at least 10 percent of the loan amount
- Pay private mortgage insurance (PMI) if down payment is less than 20 percent
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.
Top 5 Bankrate mortgage lenders in Michigan
- Better.com – Best overall
- Interfirst Mortgage Company – Best for refinancing
- Fairway Independent Mortgage Corporation – Best non-bank lender
- Garden State Home Loans – Best for low-credit score borrowers
- Sage Mortgage – Best broker
Bankrate helps thousands of borrowers find mortgage and refinance lenders every day. To determine the top mortgage lenders, we analyzed proprietary data across more than 150 lenders to assess which on our platform received the most inquiries within a three-month period. We then assigned superlatives based on factors such as fees, products offered, convenience and other criteria. These top lenders are updated regularly.
Better.com – Best overall
The entire experience at Better.com aims to live up to its name of being a cut above the traditional homebuying process: faster, cheaper and simpler equals better. Save more than $3,000 due to the lender’s lack of fees, and get into your new home in record time thanks to a 21-day closing timeline.
Strengths: No lender fees; streamlined, tech-forward experience; mortgage rates listed online and frequently updated
Weaknesses: No VA or USDA loans; no home equity lines of credit (HELOCs)
Read Bankrate's Better.com mortgage review
Interfirst Mortgage Company – Best for refinancing
To get an idea of what borrowing from Interfirst Mortgage Company will be like, take a look at what others have to say: 4.6 stars out of five, according to more than 200 reviews with the Better Business Bureau. Many of those recent reviews are focused on how easy the lender made the refinancing process. It’s affordable, too: The lender doesn’t charge any fees.
Strengths: No lender fees; A+ rating from the Better Business Bureau; all-online application experience
Weaknesses: Website functionality is very limited, with no mortgage rates advertised; closing process is around 45 days, which can be longer than many other online-focused lending experiences
Read Bankrate's Interfirst Mortgage Company review
Fairway Independent Mortgage Corporation – Best non-bank lender
Sometimes, the numbers say it all: Fairway Independent Mortgage Corporation funded more than $65 billion in home loans in 2020. While you’ll have to contact a loan officer for information about the lender’s rates and fees, the majority of the experience at Fairway can be done via your screen. The FairwayNOW mobile app helps you get preapproved quickly, upload your documents and monitor the status of your application. If you’re looking for an in-person touch, you’re in luck: The lender also has branch locations in Bay City, Coldwater and Saline.
Strengths: Mobile app makes managing application easy; A+ rating from the Better Business Bureau; three locations in Michigan
Weaknesses: Doesn’t publicly advertise rates or list specific fees; have to contact a loan officer to start the process
Read Bankrate's Fairway Independent Mortgage Corporation review
Garden State Home Loans – Best for low-credit score borrowers
This lender is named for New Jersey, but borrowers in The Wolverine State can also take advantage of its competitive rates and quick turn times. Most closings happen within 30 days, and Garden State Home Loans will work with borrowers who have sub-par credit: A few programs require just a 580 credit score.
Strengths: Live chat feature on the lender’s website; instant online loan estimates; low overhead costs translate to low fees for borrowers
Weaknesses: Mortgage rates are not advertised online; website experience is not as sophisticated as that of some other lenders
Read Bankrate's Garden State Home Loans review
Sage Mortgage – Best broker
Sage Mortgage is new to the game — the broker was founded in 2020 — but it’s already gained the wisdom associated with its name by helping more than 3,500 borrowers close mortgages. It’s an especially solid choice if you’re looking to refinance. By working with multiple lenders, Sage can help you find the best terms on a new loan.
Strengths: Saves borrowers who are refinancing an average of $430 per month; convenient ability to text with loan officers; easy online application process
Weaknesses: Seems to specialize in refinancing rather than new purchases; only publishes starting 15-year rates online, so it’s hard to get an idea of other options
Read Bankrate's Sage Mortgage review
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.