Michigan Mortgage and Refinance Rates
On Wednesday, November 29, 2023, the national average 30-year fixed mortgage APR is 7.71%. The national average 30-year fixed refinance APR is 7.73%, according to Bankrate's latest survey of the nation's largest mortgage lenders.
On Wednesday, November 29, 2023, the national average 30-year fixed mortgage APR is 7.71%. The national average 30-year fixed refinance APR is 7.73%, according to Bankrate's latest survey of the nation's largest mortgage lenders.
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Michigan Mortgage and Refinance Rates
Current mortgage rates in Michigan
As of Wednesday, November 29, 2023, current interest rates in Michigan are 7.65% for a 30-year fixed mortgage and 6.97% for a 15-year fixed mortgage. The state of Michigan offers mortgage options and first-time homebuyer assistance programs to help make becoming a homeowner more affordable.
Refinance rates in Michigan
Michigan homeowners who’ve seen their equity rise in recent years might be interested in refinancing their mortgage as a way to tap those funds. Check out Bankrate’s guide to cash-out refinancing to learn more.
How to find the best mortgage rate in Michigan for you
When shopping for a mortgage, compare at least three loan offers — research shows this exercise can save you thousands of dollars over the life of a loan.
Bankrate can help you find the best mortgage deal. Here are some basic steps to securing a loan on favorable terms:
Step 1: Strengthen your credit score
Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your standing if needed. This means pulling your credit score and credit reports. You’re entitled to a free credit report from each of the three main reporting bureaus (Experian, Equifax and TransUnion), which you can get through AnnualCreditReport.com.
Step 2: Determine your budget
To find the right mortgage, you’ll need a good handle on how much house you can afford. That’s because a lender could qualify you for more mortgage than you need, or one that would max out your budget and leave no room for unexpected expenses.
Step 3: Know your mortgage options
There are a few different types of mortgages. Many lenders offer conventional loans that require as little as 3 percent down. FHA loans also have a low down payment threshold, while VA loans (for veterans) and USDA loans (for borrowers in rural areas) have no down payment requirement. If you’re in the market for a jumbo loan, check Pennsylvania’s county-by-county loan limits.
Step 4: Compare rates and terms from several lenders
Don’t settle on the first lender you talk to — rate-shop with at least three different banks or mortgage companies. You can look to your bank or other banks, credit unions, online lenders and local independents to ensure you’re getting the best deal on rates, fees and terms.
Step 5: Get preapproved for a mortgage
As you comparison-shop, keep in mind that getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.
Lender compare
Compare mortgage lenders side by side
Mortgage rates and fees can vary widely across lenders. To help you find the right one for your needs, use this tool to compare lenders based on a variety of factors. Bankrate has reviewed and partners with these lenders, and the two lenders shown first have the highest combined Bankrate Score and customer ratings. You can use the drop downs to explore beyond these lenders and find the best option for you.
Garden State Home Loans
NMLS: 473163
|
State License: MB-473163
5.0
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Homefinity
NMLS: 2289
|
State License: 4965
5.0
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Mortgage options in Michigan
If you’re looking to get a mortgage in Michigan, explore these options:
- Michigan conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 43 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
- Michigan FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
- Michigan VA loans: If you’re a veteran or active-duty member of the military with full entitlement, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which starts at 2.15 percent for homebuyers obtaining a VA loan for the first time.
First-time homebuyer programs in Michigan
The Michigan State Housing Development Authority (MSHDA) connects first-time homebuyers, or those who haven’t owned a home in the past three years, with lenders participating in certain lower-cost mortgage programs. This includes the MI Home Loan, available to both first-time homebuyers throughout the state and repeat buyers in targeted areas.
The MI Home Loan program includes down payment assistance up to $10,000. To qualify, you’ll need a minimum credit score of 640 (or 660 if buying a multiple-section manufactured home), and your household’s income can’t exceed these limits. This program is only available to borrowers purchasing a home priced $224,500 or lower.