Michigan Home Equity Loan & HELOC Rates - October 2026
Brian McKay
Brian McKay
Founder & Data Architect- Automated Online Rate Data Aggregation
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Michigan home equity loan and HELOC rates range from 4.00% to 6.99%, verified by MonitorBankRates as of October 13, 2026. Current home equity loan rates in Michigan include Pittsburgh Federal Credit UnionPittsburgh Federal Credit Union6000 28th St SE, GRAND RAPIDS, MI, 49546A+5.0 ★Texas Ratio: 0.11% offering Home Equity Loans at 4.00%, Sunrise Family Credit UnionSunrise Family Credit Union190 N Powell Rd, Bay City, MI, 48658 9474A+5.0 ★Texas Ratio: 0.29% offering Home Equity (Fixed) Up to 95% LTV at 4.70%, St Francis X Federal Credit UnionSt Francis X Federal Credit Union1511 US Highway 131, Harbor Springs, MI, 49740 9617A+5.0 ★Texas Ratio: 0.43% offering Home Equity - Adjustable Rate 3/3 ARM at 4.75%, Farmers Insurance Federal Credit UnionFarmers Insurance Federal Credit Union5600 Beechtree Ln SE, Caledonia, MI, 49316A5.0 ★Texas Ratio: 12.30% offering Home Equity Loan at 4.99%, and 1166 Federal Credit Union1166 Federal Credit Union2900 Charlevoix Dr, Grand Rapids, MI, 49546A+5.0 ★Texas Ratio: 1.54% offering Home Equity Loans - 5 Years at 4.99%. Home equity and HELOC rates as of October 13, 2026 according to verified data from MonitorBankRates. Use the tabs below to compare home equity loans and HELOCs side by side. Rates are continually updated, we recommend checking back frequently.
Rates reflect actual verified offers from lenders actively serving Michigan borrowers. Your final approved rate will depend on your credit profile, the equity in your home, your combined loan-to-value ratio, and daily market movements. Last Updated and Verified: October 13, 2026
Compare Home Equity & HELOC Rates Today in Michigan
Michigan Home Equity Loan Rates
Credit Level: Gold; Standard and customary Home Equity loan fees will apply. (See schedule of fees and charges)
Credit Level: Silver; Standard and customary Home Equity loan fees will apply. (See schedule of fees and charges)
As Low As; Up to 95% LTV; APR based on $100,000 loan amount, credit score of 730, and estimated closing fees of $1,500
As Low As; Rates listed are as low as depending on credit score; Other terms and conditions may apply
No additional details available.
No additional details available.
Credit Level: Crystal; Standard and customary Home Equity loan fees will apply. (See schedule of fees and charges)
As Low As; Rates listed are as low as depending on credit score; Other terms and conditions may apply
Credit Score: 750+; 20% Down Payment; Maximum LTV 80% (75% Manufactured, 50% Investment); Rate is .50% higher for Manufactured Homes and 1.00% higher for Investment Properties
- Sep 29, 20265.03%▼ from 5.53%
- Sep 14, 20265.53%first recorded
over $50,000.00; Term: 15 Year Balloon @ 360 months; $0 Closing Costs; Restrictions apply
As Low As; Rates listed are as low as depending on credit score; Other terms and conditions may apply
As Low As; Rates listed are as low as depending on credit score; Other terms and conditions may apply
As Low As
Credit Score: 700-749; 20% Down Payment; Maximum LTV 80% (75% Manufactured, 50% Investment); Rate is .50% higher for Manufactured Homes and 1.00% higher for Investment Properties
- Sep 29, 20265.28%▼ from 5.53%
- Sep 14, 20265.53%first recorded
No additional details available.
As Low As; Maximum % Financed: Up to 80% CLTV; Eligibility: membership required with $5 minimum savings balance; minimum credit score of 730 required for advertised Rate/APR; subject to credit approval and collateral evaluation; rates based on a $50,000 loan amount
- Sep 29, 20265.49%▲ from 5.17%
- Sep 18, 20265.17%first recorded
We have lower our Home Equity Rates by a 0.75%. All loans subject to approval. Normal Underwriting Guide Lines Apply
No additional details available.
As Low As; Rates listed are as low as depending on credit score; Other terms and conditions may apply
As Low As; Fixed Closed Home Equity; Max Loan to Value 90%; minimum amount $10,000, maximum $250,000; Michigan property only
Credit Score: 675-699; 20% Down Payment; Maximum LTV 80% (75% Manufactured, 50% Investment); Rate is .50% higher for Manufactured Homes and 1.00% higher for Investment Properties
As Low As; Rates listed are as low as depending on credit score; Other terms and conditions may apply
As Low As; Up to 95% LTV; APR based on $100,000 loan amount, credit score of 730, and estimated closing fees of $1,500
No additional details available.
As Low As
As Low As; Minimum loan balance $10,000 up to 80% LTV
We have lower our Home Equity Rates by a 0.75%. All loans subject to approval. Normal Underwriting Guide Lines Apply
No additional details available.
Additional APR listed for this product: 6.75%.
As Low As; Fixed; Max Loan Amount: $200,000; Rate may vary based upon term & LTV. Other rates & terms available.
As Low As; Up to 90% financing; Fixed rate
No additional details available.
Term: terms up to 180 months; As Low As; Closed end/fixed rate; Loans from $10,000-$250,000; terms up to 180 months based on loan amount; $200 processing fee applies; rates may vary based on term, credit history, collateral, lien position and LTV; rates tied to market index (or prime rate); rates will not exceed 20% APR
- Sep 18, 20265.75%▲ from 5.50%
- Sep 16, 20265.50%first recorded
APR as low as; Loan Amount: $10,000 - $100,000; Max combined loan to value (CLTV) is 90%; NEW MONEY ONLY
Fixed rate for the term of the loan; assumes $50,000 loan amount; loan to value no higher than 80%; APR excludes processing fee; limited to MI properties only; property insurance required
Credit Score: 674-; 20% Down Payment; Maximum LTV 80% (75% Manufactured, 50% Investment); Rate is .50% higher for Manufactured Homes and 1.00% higher for Investment Properties
- Sep 29, 20265.78%▲ from 5.53%
- Sep 14, 20265.53%first recorded
As low as*
As Low As
No additional details available.
As Low As; Fixed rate; Loan to Value: Up to 80%
Featured Rates; Effective Date: September 1, 2026; APR* = Annual Percentage Rate
As Low As; Rates effective 10/1/2026
We have lower our Home Equity Rates by a 0.75%. All loans subject to approval. Normal Underwriting Guide Lines Apply
No additional details available.
Additional APR listed for this product: 7.00%.
As Low As; 65% CLTV 2nd Lien or 80% LTV 1st Lien; This financing option is only available on single unit, owner-occupied, primary residences located in the state of Michigan; Rates are not risk-based; all members will get the same low rate based on the loan to value of their home and LOC's lien position.; Maximum loan amount for up to 3 year term is $20,000.; Minimum amount to borrow is $5,000; maximum amount is $300,000.; Approval is based on overall creditworthiness factors and satisfactory collateral. All loans, terms and conditions are subject to Credit Union qualifications & may vary based on creditworthiness. Restrictions may apply.
No additional details available.
- Sep 22, 20266.00%▲ from 5.75%
- Sep 18, 20265.75%first recorded
Home Equity
As Low As
As Low As; Effective Date: Monday, October 12th, 2026
up to $50,000.00; Term: 5 Year Balloon @ 180 months; $0 Closing Costs; Restrictions apply
Fixed; $100,000.00 maximum - 1st Lien / $75,000 Max - 2nd Lien. Higher rates apply for combined loan to value ratios exceeding 80%. Call for additional terms and rates.
As Low As; Max Term 120 Months; For qualified borrowers; Direct deposit discounted rate does not apply to Home Equity loans
As Low As; Effective Date: Tuesday, October 13th, 2026; Rates reflect .25% loyalty discount.
- Oct 5, 20266.00%▲ from 5.75%
- Sep 21, 20265.75%first recorded
As Low As; Up to 90% financing; Fixed rate
As Low As; LTV: Under 80%
APR as low as; Loan Amount: $50,000-100,000; Max combined loan to value (CLTV) is 90%; NEW MONEY ONLY
Fixed rate for the term of the loan; assumes $50,000 loan amount; loan to value no higher than 80%; APR excludes processing fee; limited to MI properties only; property insurance required
Rates effective as of August 19, 2025
Rates effective as of August 19, 2025
Michigan HELOC Rates
Loan Amount: $10,000.00 - $350,000.00
- Oct 2, 20265.49%▲ from 5.24%
- Sep 29, 20265.24%first recorded
Fixed rate
Credit score 740+; fixed APR for the life of the loan (unique to Integra First); credit limit up to 80% of home value; 1st lien position; 1% increase may apply when Integra First is 2nd lien
As Low As; APR*; Variable rate product that may change; maximum APR 18.00%; Home must be borrower's primary residence in Allegan, Kent, Mason, Montcalm, Muskegon, Newaygo, Oceana, or Ottawa counties, Michigan
- Sep 26, 20265.50%▲ from 5.25%
- Sep 14, 20265.25%first recorded
Loan Amount: $10,000.00 - $350,000.00; As Low As
As Low As; Loan payments based on $9 or $12 per thousand . Example, $10,000 loan, Payment examples do not include taxes and insurance, if applicable, actual payment obligation will be greater. Minimum Line of Credit amount $10,000 Maximum Line of Credit amount $200,000 The annual percentage rate can change quarterly. The maximum ANNUAL PERCENTAGE RATE that can apply is 18.00%. The ANNUAL PERCENTAGE RATE will never increase more than two (2) percent points in one year. Under no circumstances will the rate ever be less than 4.50% per annum. Index based off of prime. Margins are -0.25% for loan amounts $49,999.99 or less and -0.75% for $50,000 to $200,000. Properties only located in the State of Michigan. Property insurance is required.
As Low As; Rates apply to first lien position and require acceptable collateral
- Oct 2, 20266.00%▲ from 5.75%
- Sep 14, 20265.75%first recorded
As Low As; Variable rate; minimum rate 5.50% APR, maximum rate 14.00% APR; primary residences in the State of Michigan only
- Sep 18, 20266.00%▲ from 5.75%
- Sep 14, 20265.75%first recorded
Introductory annual percentage rate ("APR") as low as 5.24% for the first year. Thereafter the APR varies, with a maximum APR of 18%. As of 10/01/2026, this variable Hybrid Home Equity Line of Credit APR would have been 6.24% APR for 70% LTV. Intro rate of 5.24% is for well-qualified borrowers at a maximum loan to value ratio ("LTV") of 70%. New loans only. Additional introductory rates and variable rate may be available for higher LTVs. Contact the credit union for details. Consult your tax advisor regarding deductibility of interest. Benefits of a loan for debt consolidation depend on individual circumstances. Speak with a representative on whether it is the right fit for you. Please contact credit union for additional information regarding Hybrid rate locks. Loan approval and APR based on creditworthiness, payment method, length of loan term, ability to repay, and amount of loan, in addition to other conditions listed in the account agreement. Rates, terms and conditions are subject to change or expire without notice. Home Equity products are available in FL, Illinois, Kansas and Missouri only*. For states with a mortgage tax, the cost of the mortgage tax will be paid by the member and may be paid in cash or taken from the proceeds of the HELOC. *FL and Illinois properties - maximum LTV 90%/maximum loan amount $250,000. Loan to Value = LTV. Home value may be based on full appraisal at the member's expense. Property must be a single family home and owner occupied. Property insurance will be required.
- Oct 2, 20266.24%▲ from 5.24%
- Sep 29, 20265.24%first recorded
Term: Variable Based on Prime; As Low As; Rate: Variable Based on Prime
Loan-to-Value: Up to 80% LTV; Fixed APR means the rate will not change while the plan is open; minimum line of credit $10,000; closing costs $99.00; effective Tuesday, October 13th, 2026
As Low As; Rates apply to first lien position and require acceptable collateral
- Oct 2, 20266.25%▲ from 6.00%
- Sep 14, 20266.00%first recorded
As Low As; Rate: Prime* -.50%; LTV: Less or equal to 95.00% CLTV; Prime Rate as of 12-11-2025: 6.75% APR; 3.00% APR Floor; Appraisal may be required
As Low As; Open end/variable rate; Loans from $10,000-$250,000; 10-year draw period; $200 processing fee applies; rates may vary based on term, credit history, collateral, lien position and LTV; rates tied to market index (or prime rate); rates will not exceed 20% APR
- Sep 29, 20266.25%▲ from 6.00%
- Sep 16, 20266.00%first recorded
As Low As; Variable - 80% Loan-to-Value; Loan Amount: $5,000-$24,99.999; New money only
As Low As; Loan payments based on $9 or $12 per thousand . Example, $10,000 loan, Payment examples do not include taxes and insurance, if applicable, actual payment obligation will be greater. Minimum Line of Credit amount $10,000 Maximum Line of Credit amount $200,000 The annual percentage rate can change quarterly. The maximum ANNUAL PERCENTAGE RATE that can apply is 18.00%. The ANNUAL PERCENTAGE RATE will never increase more than two (2) percent points in one year. Under no circumstances will the rate ever be less than 4.50% per annum. Index based off of prime. Margins are -0.25% for loan amounts $49,999.99 or less and -0.75% for $50,000 to $200,000. Properties only located in the State of Michigan. Property insurance is required.
As Low As; The variable APR for Home Equity Line of Credit ranges from 4.25% - 8.75% APR. The interest rate is subject to change without notice and will not be lower than 3% APR and will not exceed 18% APR. Interest may be tax-deductible; please consult your tax advisor. Michigan owner-occupied properties only. Property insurance is required. Additional restrictions may apply.
- Oct 2, 20266.50%▼ from 6.75%
- Sep 14, 20266.75%first recorded
As Low As; *
- Sep 22, 20266.50%▲ from 6.25%
- Sep 14, 20266.25%first recorded
Rates are adjustable and subject to change. **Annual Percentage Rate. Rates are as low as and may vary based on creditworthiness, loan-to-value, and other factors.
- Sep 18, 20266.50%▲ from 6.25%
- Sep 14, 20266.25%first recorded
Variable rate loan. Your rate will depend on your credit score and loan to value ratio and is based on the Prime Interest rate plus or minus a margin. Margins vary between minus .50% and plus 5.00% APR. Your overall rate (Prime plus or minus the margin) will never exceed 25.00% APR. Current variable rates based on Prime plus or minus a margin (margin identified at time of application, is defined as the number of percentage points the lender subtracts or adds to the index rate to determine the annual percentage rate to be charged). Current APRs range from 6.50% to 11.00%.
Up To 80% of Home's Value
- Sep 18, 20266.50%▲ from 6.25%
- Sep 14, 20266.25%first recorded
Term: Variable Based on Prime; Rate: Prime + Margin; As Low As
- Oct 10, 20266.50%▲ from 6.25%
- Sep 14, 20266.25%first recorded
As Low As; Type: Monthly adjustable rate; Loan to Value: Up to 80%
As Low As; Rates apply to first lien position and require acceptable collateral
- Oct 13, 20266.50%▲ from 6.25%
- Sep 14, 20266.25%first recorded
As Low As; Term: Line of Credit; Rates apply to first lien position and require acceptable collateral
Term: 10 year draw, 20 year amortization; As Low As; Home Equity Loans; Variable rate based on prime rate plus margin; APR = Annual Percentage Rate; For full HELOC disclosure click here
- Oct 2, 20266.50%▲ from 6.25%
- Sep 14, 20266.25%first recorded
As Low As; Variable - 80% Loan-to-Value; Loan Amount: > $25,000; New money only
80% LTV
- Oct 9, 20266.50%▲ from 6.25%
- Sep 21, 20266.25%first recorded
No additional details available.
Introductory annual percentage rate ("APR") as low as 5.74% for the first year. Thereafter the APR varies, with a maximum APR of 18%. As of 10/01/2026, this variable Hybrid Home Equity Line of Credit APR would have been 6.74% APR for 80% LTV. Intro rate of 5.74% is for well-qualified borrowers at a maximum loan to value ratio ("LTV") of 80%. New loans only. Additional introductory rates and variable rate may be available for higher LTVs. Contact the credit union for details. Consult your tax advisor regarding deductibility of interest. Benefits of a loan for debt consolidation depend on individual circumstances. Speak with a representative on whether it is the right fit for you. Please contact credit union for additional information regarding Hybrid rate locks. Loan approval and APR based on creditworthiness, payment method, length of loan term, ability to repay, and amount of loan, in addition to other conditions listed in the account agreement. Rates, terms and conditions are subject to change or expire without notice. Home Equity products are available in FL, Illinois, Kansas and Missouri only*. For states with a mortgage tax, the cost of the mortgage tax will be paid by the member and may be paid in cash or taken from the proceeds of the HELOC. *FL and Illinois properties - maximum LTV 90%/maximum loan amount $250,000. Loan to Value = LTV. Home value may be based on full appraisal at the member's expense. Property must be a single family home and owner occupied. Property insurance will be required.
- Oct 2, 20266.74%▲ from 5.74%
- Sep 29, 20265.74%first recorded
Amount: $500,000+
As low as*
Term: 240-Month (10-year draw, 10-year repayment); As Low As
Home Equity
Variable Rate as of 10/01/2026. The HELOC Annual Percentage Rate (APR) may vary monthly, based on the Wall Street Journal Prime Rate minus 0.250% (the margin) in effect on the 25th of the previous month. The APR will not exceed 18.00% and will not fall below 3.250%. The HELOC has a 10-year draw period during which the minimum monthly payment is interest-only; making interest-only payments may result in a significantly higher monthly payment once the loan enters the repayment period. After the draw period ends, the loan enters a 20-year repayment period, during which the outstanding balance is amortized and payments will include both interest and principal. All loans are subject to credit approval, including evaluation of creditworthiness, qualifications, and acceptable collateral. Eligible properties must be developed, non-agricultural, and non-income-producing residential homes located in Michigan. The maximum Combined Loan-to-Value (CLTV) is 90%. Additional restrictions may apply. Membership Required.
- Oct 1, 20266.75%▲ from 6.50%
- Sep 27, 20266.50%first recorded
As Low As; Variable Rate Line of Credit; Primary rate adjusted quarterly, Current Rate 6.75%; Maximum combined LTV up to 95%
As Low As; Variable - 80% Loan-to-Value; Loan Amount: > $50,000; New money only
- Sep 18, 20266.75%▼ from 7.00%
- Sep 14, 20267.00%first recorded
As Low As; Up to 70% Loan to Value; Variable; Rate Type: Variable
Introductory rate valid for 12 months from the open date after which the rate will default to the standard variable rate. Combined loan-to-value may not exceed 80%. Lien must not exceed second position. Property must be a single-family, owner-occupied principal residence located in the state of Michigan. Certain programs may allow for a second home property to be used as security. Modular/manufactured homes may be allowed. Homeowners insurance policy required, and if applicable, flood insurance. The credit union waives all third-party fees. A recoupment fee of up to $395 will be assessed if you close your account within 24 months of the open date. Maximum APR is 18%. Other conditions and restrictions may apply. Contact the credit union for complete details. Rates accurate as of 10/9/2026. Product may be changed or discontinued at any time. Minimum loan amount is $5,000 and maximum is $300,000. 60% CLTV or 80% LTV First Lien
- Oct 2, 20266.75%▲ from 6.50%
- Sep 14, 20266.50%first recorded
As Low As; APR is based on Prime plus a margin, adjusted quarterly; APR will never exceed 18.000%
- Oct 2, 20266.75%▲ from 6.50%
- Sep 14, 20266.50%first recorded
Credit Limit: $100,000 - $249,999; CLTV: <=50%
Loan to Value up to 80.00%; Maximum APR 18.00%; Annual Percentage Rate designated as APR. Rates, terms, and conditions are subject to change and may vary based on creditworthiness, qualifications, and collateral conditions. All loans subject to approval, not all applicants will qualify. Rate shown is the best rate offered for all Home Equity Loan Products, with a loan amount under $400,000 and credit score of 740 or higher. 90% loan to value financing available to credit scrores of 660 and higher. The minimum line of credit is $5,000 and the minimum draw amount is $100. Fees charged for the closing of a Home Equity Line of Credit start at $275 and could be as high as $1,500. A home equity is secured by a first or second mortgage lien on your primary residence only. Flood and/or property hazard insurance may be required. Other restrictions may apply. See Credit Union for complete details. Credit Union reserves the right to end the promotion at any time and without notice.
- Sep 27, 20266.77%▲ from 6.52%
- Sep 18, 20266.52%first recorded
Loan Amount: $10,000.00 - $250,000.00
- Oct 2, 20266.99%▲ from 6.74%
- Sep 29, 20266.74%first recorded
Banks and Credit Unions: If you need to update your rate data or request removal from MonitorBankRates.com, please contact us here.
Michigan Home Equity Snapshot
Local housing and income figures that shape how much equity Michigan homeowners can borrow against. Source: U.S. Census Bureau & FHFA.
Equity and borrowable estimates are illustrative, based on a typical owner who has paid the original mortgage down to roughly 65% of current value and an 85% combined loan-to-value ceiling. Your actual figures depend on your remaining mortgage balance, credit profile, and lender underwriting.
How Much Can You Borrow in Michigan?
Your borrowing limit on a home equity loan or HELOC is set by your combined loan-to-value ratio (CLTV), the total of your first mortgage plus the new loan, divided by your home's appraised value. Most lenders cap CLTV at 80 to 85%. Using the statewide median home value of $231,600, here is roughly what an 85% CLTV ceiling allows at three stages of mortgage payoff:
| Mortgage Stage | Still Owed | Equity Held | Est. You Could Borrow |
|---|---|---|---|
| Earlier in repayment | $162,120 | $69,480 | $34,740 |
| Roughly halfway through | $127,380 | $104,220 | $69,480 |
| Well into repayment | $92,640 | $138,960 | $104,220 |
The further along you are in paying down your first mortgage, the more equity sits available to borrow against. Lenders will also weigh your credit score, debt-to-income ratio, and income , the statewide median household income is $72,875, before issuing a final offer.
Illustrative estimates only, based on an 85% CLTV ceiling and the Census median home value for this area. Actual limits vary by lender (some allow up to 90% CLTV), by your home's appraised value, and by your credit profile. This is not a loan offer or a guarantee of approval.
Michigan Home Equity Rate Trends
Compare local Michigan home equity quotes against the statewide average
Daily HELOC and home equity loan averages tracked across our database of verified rate quotes, updated every evening.
Michigan HELOC rates rose 0.069 points over the past 7 days to 6.990%.
Michigan home equity loan rates fell 0.002 points over the past 7 days to 6.870%.
Michigan Home Equity Rate Forecast, Next 12 Months
Where are Michigan HELOC and home equity loan rates headed through October 2027?
HELOC trajectory based on prime rate path (prime = fed funds + 3.0%). Home equity loan trajectory based on Fed funds futures and 10-year Treasury path. Not financial advice.
What Forecast Rates Mean for Michigan Borrowers
Monthly cost on $50,000 borrowed. HELOC shown as interest-only payment (typical during 10-year draw period). Home equity loan shown as fully amortizing principal & interest on a 15-year term.
| Scenario | HELOC Rate | HELOC Mo. Interest | HE Loan Rate | HE Loan Mo. P&I |
|---|---|---|---|---|
| Today (MI avg) | 6.990% | $291 | 6.870% | $446 |
| 6-Month Forecast | 6.990% | $291 | 6.870% | $446 |
| 12-Month Forecast | 6.740% (6.49, 6.94%) | $281 (-$10) | 6.470% (6.12, 6.77%) | $435 (-$11) |
Green (−) = lower monthly cost vs today. Red (+) = higher monthly cost. HELOC cost reflects variable-rate exposure: when prime drops, HELOC costs drop within one billing cycle. Locking a fixed home equity loan now insulates against further rate increases but forfeits the savings if rates fall.
How Home Equity Lending Works in Michigan
Michigan Equity Math
According to the U.S. Census Bureau, the median owner-occupied home value in Michigan is approximately $231,600. A homeowner who owes 60% of their original mortgage on a median-valued home would have roughly $92,640 in available equity. At a typical 85% CLTV limit, that means they could potentially borrow up to $57,900 via a HELOC or home equity loan, depending on credit profile and lender underwriting standards.
Home Equity Loan vs HELOC, Quick Comparison
| Feature | Home Equity Loan | HELOC |
|---|---|---|
| Rate Type | Fixed for life of loan | Variable (prime + margin) |
| Payout | Lump sum at closing | Draw as needed, up to limit |
| Term | 5-30 years | 10-yr draw + 20-yr repay (typical) |
| Payment | Fixed P&I from month one | Interest-only during draw (usually) |
| Closing Costs | Typically 2-5% of loan | Often $0 (promos common) |
| Best For | Specific large expense, payment certainty | Ongoing access, flexible borrowing |
Want a deeper breakdown? Read our full guide: Home Equity Loan vs HELOC, Key Differences, Pros and Cons
Michigan Home Equity Loan and HELOC Rules
Michigan does not add its own loan to value cap, fee cap, or waiting period for home equity loans and HELOCs, so the federal rules below set the baseline and individual lenders set their own limits, most commonly 80 to 90 percent combined loan to value. The state rules that still matter for a Michigan borrower cover prepayment penalties, how a foreclosure works, taxes at closing, and who handles the closing.
Prepayment penalties
On loans secured by a single family owner occupied dwelling, a prepayment penalty may not exceed 1 percent of the amount prepaid during the first three years and is prohibited after that (MCL 438.31c); federally backed loans are exempt.
Foreclosure process
Both (non-judicial typical). Foreclosure by advertisement requires four weekly published notices plus posting on the property, so the sheriff sale typically comes about 4 to 6 months after default, followed by a statutory redemption period of up to 6 months (or a year in some cases).
Deficiency after foreclosure
Allowed after either type of foreclosure; if the lender bought the property at the sale, the borrower can defend by showing the sale price was substantially below fair value.
Redemption after a sale
Six months after the sheriff sale for most home loans (12 months if less than two thirds of the original principal was still owed or the parcel exceeds 3 acres; 30 days if the home is abandoned), and the borrower keeps possession during redemption.
Taxes and recording costs
State real estate transfer tax of $3.75 per $500 (0.75 percent) plus a county transfer tax of $0.55 per $500 (0.11 percent), customarily paid by the seller. No mortgage recording tax.
Who handles the closing
No attorney is required at closing in Michigan; title or escrow companies usually handle it.
Other things to know
Purchasers at foreclosure sales may inspect the property during redemption and can ask a court to cut redemption short if the borrower damages the home (2014 amendments). Michigan recognizes tenancy by the entirety for married couples; the bankruptcy homestead exemption (MCL 600.5451) is modest, $51,150 for most filers and $76,725 for those 65 or older or disabled for cases filed on or after April 1, 2026, adjusted every three years.
Federal rules that apply to every home equity loan and HELOC
Home equity loans and HELOCs secured by your main home carry federal protections on top of anything your state adds. For a HELOC, the lender must give you the HELOC disclosure and the CFPB home equity brochure when you apply and cannot charge a nonrefundable fee until three business days later; the rate must follow a public index the lender does not control, and the lender can freeze or cut the line only for specific reasons such as a significant drop in the home's value or a material change in your finances. For both home equity loans and HELOCs you have until midnight of the third business day after closing to cancel for any reason and get your fees back. A loan is a high cost mortgage under HOEPA if its APR is more than 6.5 percentage points above the average prime offer rate for a first lien (8.5 points for a second lien) or if points and fees exceed 5 percent; high cost loans require counseling and cannot carry balloon payments or prepayment penalties. Since 2018, interest on a home equity loan or HELOC is deductible only if the money is used to buy, build, or substantially improve the home that secures it, and only within the $750,000 total acquisition debt cap. Flood insurance is required on any home equity loan or HELOC from a federally regulated lender if the home sits in a FEMA flood hazard area.
Sources
- Nolo: Michigan Foreclosure Process: Laws, Steps, and Homeowner Rights
- MCL 600.3240 Redemption of premises (Michigan Legislature)
- MCL 438.31c Prepayment penalties (Michigan Legislature)
- Mika Meyers: Amendment to the Michigan Foreclosure by Advertisement Statute
- National Law Review: Michigan Bankruptcy Exemptions Set to Rise Nearly 11% Effective April 1, 2026
- CFPB: Right of rescission
- Regulation Z section 1026.40 (HELOC rules)
- Regulation Z section 1026.32 (HOEPA)
- Federal Register: 2026 Regulation Z threshold adjustments
- IRS Publication 936, Home Mortgage Interest Deduction
- FHFA 2026 conforming loan limits
- CFPB: Servicemembers Civil Relief Act
- 12 CFR Part 339 (flood insurance)
Michigan Home Equity Loan Calculator
Estimate how much you could borrow against your home, and what the monthly payment on a fixed-rate home equity loan would look like. The home value below is prefilled with the local median from the U.S. Census Bureau — change it to your own home's value, and adjust any other field to see the numbers update.
1. How Much Can You Borrow?
2. Estimated Monthly Payment
Defaults to your estimated borrowing limit — edit to model a smaller loan.
Estimates only. Borrowing power assumes lenders allow up to the selected combined loan-to-value ratio; actual limits, rates, and approval depend on your credit profile, income, and the lender's underwriting. The payment figure is for a fixed-rate home equity loan with standard amortization — HELOC payments are typically interest-only during the draw period and vary with the prime rate, so they are not modeled here. This is not a loan offer.
Methodology & Data Sources
Independent, Free, and Unbiased Rate Comparisons: MonitorBankRates.com is an independent rate comparison service. Our Michigan home equity loan and HELOC rate tables are free for consumers to use, and we do not receive payment from any lender to be included or to be ranked in any particular order. Listings are based solely on the rates each lender publicly advertises on its own website.
A Note on Third-Party Rate Tools: Some pages on our site also feature rate comparison widgets and tools provided by third-party partners, including the iCanBuy home equity offers widget shown above. These tools may include sponsored listings or affiliate links, and we may receive compensation when users click through them. We clearly label these widgets so you can tell at a glance which rates come from our independent MonitorBankRates.com tables and which come from our advertising partners.
Direct-Sourced & Verified Home Equity Rate Data: We aggregate home equity loan and HELOC rates for Michigan directly from the official websites of local lenders, credit unions, and national institutions using our proprietary rate aggregation technology and a dedicated team of rate updaters. Every rate displayed is highly accurate and trustworthy.
Local, Regional, and National Coverage: Our systems constantly monitor the market to provide a complete picture of available home equity products in Michigan. We feature a comprehensive mix of licensed NMLS financial institutions, from neighborhood credit unions and competitive regional banks to large national lenders accepting applications from Michigan borrowers.
Local-First Sorting: Rate tables on city pages list institutions with physical branches in the city first, followed by statewide institutions, then national lenders, regardless of APR. This intentional ordering helps homeowners find lenders they can walk into for an in-person closing, since home equity products often involve appraisal, notarization, and other steps that benefit from a local relationship.
Daily Updates & Time-Stamped Accuracy: Our rate updaters verify and update home equity rates daily. Because HELOC rates move with the prime rate and the broader market, every product features its own “last updated” date for full transparency.
Proprietary Lender Health & Safety Grades: Beyond tracking rates, MonitorBankRates evaluates the financial stability of every listed institution. Our Health Grades (A+ to F) and Star Ratings are composite metrics calculated using objective regulatory data, including the Texas Ratio, ensuring you compare rates from secure, reliable lenders.
Home Equity Basics for Michigan Homeowners
Home equity is the share of a property the owner truly owns: the home's current market value minus the balance still owed on the mortgage. For a Michigan homeowner, it grows as the mortgage is paid down and as the property appreciates. Lenders let homeowners borrow against this equity, using the home as collateral, which is why home equity products generally carry lower rates than credit cards or unsecured personal loans.
Home Equity Loan vs. HELOC in Michigan
A home equity loan advances a lump sum at a fixed rate, repaid in equal installments over a set term, useful for a one-time expense with a known cost. For example, Pittsburgh Federal Credit Union is listing its Home Equity Loans at 4.00%. A home equity line of credit (HELOC) works more like a credit card: a revolving credit limit the borrower can draw from as needed during a draw period, usually at a variable rate. On the line-of-credit side, UNIFY Financial Federal Credit Union is listing its Home Equity Variable (70% LTV) at 5.49%. For Michigan borrowers, a loan offers payment certainty, while a HELOC offers flexibility for ongoing or uncertain costs.
How Much Michigan Homeowners Can Borrow
Most lenders allow borrowing up to a combined loan-to-value ratio of 80 to 85 percent, meaning the mortgage balance plus the new home equity debt cannot exceed that share of the home's value. For a Michigan homeowner, the exact amount available also depends on credit score, income, and the lender's policies. Because the borrowing limit is tied to current value, an appraisal is typically part of the approval process.
How Michigan Home Equity Rates Are Set
HELOC rates are usually variable and tied to the prime rate, so they move when the Federal Reserve changes short-term rates, while home equity loan rates are typically fixed and priced off longer-term benchmarks. On top of that market baseline, the rate a Michigan borrower receives reflects credit score, combined loan-to-value ratio, and loan amount, so stronger credit and more equity generally earn a lower rate. A borrower’s final rate is set once an application is underwritten.
Risks for Michigan Borrowers to Weigh
Because the home secures the debt, falling behind on payments can ultimately put the property at risk, so home equity borrowing is best reserved for purposes that preserve or build value, such as renovations or consolidating higher-rate debt. For Michigan borrowers, variable-rate HELOCs also carry the risk that payments rise if rates climb, and some lines shift from interest-only payments to full repayment after the draw period ends. Understanding the repayment structure before borrowing helps avoid payment shock later.
Frequently Asked Questions about Home Equity & HELOC Rates in Michigan
What is the difference between a home equity loan and a HELOC in Michigan?
How much equity do I need to qualify for a HELOC or home equity loan?
What credit score do I need for a home equity loan in Michigan?
Are HELOC interest payments tax-deductible?
What is the current prime rate and how does it affect my HELOC?
What is a HELOC draw period?
Can I use a home equity loan or HELOC for debt consolidation?
Are there closing costs on a home equity loan or HELOC?
Should I get a HELOC or a home equity loan?
Can I refinance my HELOC into a fixed-rate home equity loan in Michigan?
How do I compare home equity and HELOC lenders in Michigan?
How do I get home equity loan and HELOC quotes in Michigan?
How much equity could a homeowner in Michigan have?
What is a typical home equity loan amount in Michigan?
Can households in Michigan afford a home equity loan payment?
How do property taxes in Michigan affect home equity borrowing?
What percentage of homeowners in Michigan have a mortgage they could tap for equity?
Does Michigan have special rules for home equity loans and HELOCs?
Can I cancel a home equity loan or HELOC after closing in Michigan?
Can a Michigan lender charge a prepayment penalty on a home equity loan?
What are the best home equity rates in Michigan?
- Pittsburgh Federal Credit Union: 4.00% (Home Equity Loans)
- Sunrise Family Credit Union: 4.70% (Home Equity (Fixed) Up to 95% LTV)
- St Francis X Federal Credit Union: 4.75% (Home Equity - Adjustable Rate 3/3 ARM)
- Farmers Insurance Federal Credit Union: 4.99% (Home Equity Loan)
- 1166 Federal Credit Union: 4.99% (Home Equity Loans - 5 Years)
Michigan Rates & Resources
Home Equity & HELOC Rates by City in Michigan
