Michigan Mortgage Rates - August 2026
Brian McKay
Brian McKay
Founder & Data Architect- Automated Online Rate Data Aggregation
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Current 30-year fixed mortgage rates in Michigan include Honor Credit UnionHonor Credit Union1010 Moore St, Allegan, MI, 49002A+5.0 ★Texas Ratio: 5.50% at 5.75%, Financial Plus Credit Union Flint, MIFinancial Plus Credit Union Flint, MI15125 Silver Pkwy, Bay City, MI, 48423 2529A+5.0 ★Texas Ratio: 3.02% at 5.75%, Ukrainian Selfreliance Michigan Federal Credit UnionUkrainian Selfreliance Michigan Federal Credit Union11838 Joseph Campau St, Hamtramck, MI, 48091 4073A+5.0 ★Texas Ratio: 0.10% at 6.00%, Wells FargoWells Fargo34100 Woodward Ave, Birmingham, MI, 48009A5.0 ★Texas Ratio: 7.44% at 6.00%, and Consumers Credit UnionConsumers Credit Union1037 Washington Ave, Battle Creek, MI, 48823A+5.0 ★Texas Ratio: 2.97% at 6.25%. Mortgage rates as of August 28, 2026 according to verified data from MonitorBankRates.
Use the tabs below to compare mortgage rates across all loan types in Michigan side-by-side. Michigan mortgage rates currently start as low as 5.75% from Honor Credit Union at 1010 Moore St, Allegan, MI, 49002. Rates are continually updated — we recommend checking back frequently.
Mortgage Rates reflect actual verified offers from lenders actively lending to Michigan borrowers. Your final approved rate will depend on your credit profile, loan-to-value ratio, and daily market movements. Last Updated and Verified: August 28, 2026
Compare Mortgage Rates Today in Michigan
Michigan 30 Year Fixed Mortgage Rates
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As low as; APY = Annual Percentage Yield
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3% Down Payment; Payments amortized 360 months
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As Low As; Rate based on $150K loan amount. Rates and fees may vary based on market conditions and are subject to change at any time. Rate based on a 30 day lock.
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Effective Date: August 25, 2026
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NMLS ID 411386
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Annual Percentage Rates calculated based on $3,200.00 in fees, other fees may apply. For loans with less than 20% down payment, borrower paid mortgage insurance may apply. All loans are subject to additional terms and conditions. Minimum credit score of 740 required for the advertised rates. Please consult a Loan Officer for complete details.
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Loan To Value (LTV): 97.00%; Maximum Limit: $400,000.00
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As Low As; APR is calculated based on a mortgage loan amount of $175,000.00; purchase or no cash-out refinance with 80% financing and 740 and higher credit score. No points.
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Rates listed include 0.125% autopay and paperless discount. Rates include a 0.125 percentage point reduction which requires a Citizens consumer checking account set up at time of loan origination with automatic monthly payment deduction.
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Michigan 15 Year Fixed Mortgage Rates
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NMLS ID 411386
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Effective Date: August 25, 2026
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Loan To Value (LTV): 95.00%; Maximum Limit: $400,000.00
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Annual Percentage Rates calculated based on $3,200.00 in fees, other fees may apply. For loans with less than 20% down payment, borrower paid mortgage insurance may apply. All loans are subject to additional terms and conditions. Minimum credit score of 740 required for the advertised rates. Please consult a Loan Officer for complete details.
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Rates listed include 0.125% autopay and paperless discount. Rates include a 0.125 percentage point reduction which requires a Citizens consumer checking account set up at time of loan origination with automatic monthly payment deduction.
As Low As; Rate based on $150K loan amount. Rates and fees may vary based on market conditions and are subject to change at any time. Rate based on a 30 day lock.
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As Low As; APR is calculated based on a mortgage loan amount of $175,000.00; purchase or no cash-out refinance with 80% financing and 740 and higher credit score. No points.
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5% Down Payment; Payments amortized 180 months
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As low as 7.500%
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Michigan 5/1 ARM Mortgage Rates
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Longer Amortization For A Lower Payment
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APR = Annual Percentage Rate. Rates can vary according to individual loan situations. Rates and lock periods are subject to change. The payment amount may be higher if escrows for property taxes, homeowner's insurance, or mortgage insurance are applicable. Adjustable Rate Mortgages (ARMs): 2/5 Cap; tied to 1-year T-Bill with 2.875% margin. Begin with a fixed rate and adjust upward or downward after the initial fixed term. ARM products contain two numbers. The first number refers to the number of years the interest rate at closing remains fixed. The second number is the number of years between interest rate changes after the initial fixed term expires.
Effective Date: August 25, 2026
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Michigan 30-Year Jumbo Mortgage Rates
Advertised rate of Jumbo 3/1 ARM and Jumbo 30-year fixed rate are based on a $1,000,000 loan amount. Payment Example (based on $1,000,000 loan amount): $1,000,000 financed for 360 months at an initial rate of 5.50% and 5.64% APR results in an initial monthly principal and interest payment of $5,677.89 for the first 36 months. After the initial 3 years, the fully indexed Annual Percentage Rate (APR), based on rates as of 03/01/2026, of 6.25% is in effect for the remaining 324 months and can change once every year for the remaining life of the loan. Payment example does not include amounts for taxes and insurance premiums. If applicable, actual payment obligation will be greater. Rates are variable and subject to change after 3 years and your payment may increase or decrease as rates change
Advertised rate of Jumbo 3/1 ARM and Jumbo 30-year fixed rate are based on a $1,000,000 loan amount. Payment example (based on $1,000,000 loan amount): $1,000,000 financed for 360 months at a fixed rate of 6.00% and 6.14% APR equals a monthly principal and interest payment of $5,995.51. Payment example does not include amounts for taxes and insurance premiums. If applicable, actual payment obligation will be greater.
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Michigan 15-Year Jumbo Mortgage Rates
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Michigan 5/1 Jumbo ARM Mortgage Rates
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Michigan FHA Loan Rates
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Michigan VA Loan Rates
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Banks and Credit Unions: If you need to update your rate data or request removal from MonitorBankRates.com, please contact us here.
Michigan Mortgage Rate Trends
Compare local Michigan mortgage rate quotes against the statewide average
Daily mortgage rate averages tracked across our database of verified mortgage rate quotes — updated every evening.
Michigan 30-year fixed rates rose 0.020 points over the past 7 days to 6.776%.
Michigan 15-year fixed rates fell 0.011 points over the past 7 days to 6.402%.
Michigan Mortgage Rate Forecast — Next 12 Months
Where are Michigan mortgage rates headed through August 2027?
Based on Fed funds rate futures, 10-year Treasury path, and historical mortgage spread model. Not financial advice.
What Forecast Rates Mean for Michigan Home Buyers
Monthly principal & interest payment on Michigan median home of $231,600 (20% down, 30-year fixed, state-level Census ACS median)
| Scenario | Rate | Mo. Payment | vs. Today | % of Income |
|---|---|---|---|---|
| Today (MI avg) | 6.776% | $1,205 | — | 19.8% |
| 6-Month Forecast | 6.776% (6.43–7.08%) | $1,205 | +$0/mo | 19.8% |
| 12-Month Forecast | 6.376% (6.03–6.68%) | $1,156 | -$49/mo | 19% |
Income column = annual mortgage payment as % of Michigan median household income ($72,875). Above 30% is generally considered cost-burdened.
MonitorBankRates Housing Affordability Index (MBR-HAI)
A daily-updated affordability score for Michigan — updated every night from live mortgage rates across our monitoring network combined with U.S. Census Bureau income, home value, and cost burden data.
What This Score Means for Michigan Home Buyers
With a score of 110.7, Michigan is 11.3 points more affordable than the national average of 99.4. Michigan ranks #17 out of 51 states for affordability — near the middle of the national affordability range.
The index reflects the current Michigan 30-year mortgage rate of 6.776% combined with Census median home values, household income, property taxes, and cost burden data. A 0.25% rate change shifts the score by approximately 0.8-1.0 points — meaning today’s rate environment directly impacts how affordable homeownership is relative to local incomes across Michigan.
Scores update each morning, computed from rate data captured the previous night. Computed from live mortgage rates across FDIC-insured banks and NCUA-chartered credit unions, combined with U.S. Census Bureau ACS 5-Year Estimates (2024) and CPS/HVS Q4 2025. Score of 100 = national average at 6.5% reference rate. Full methodology →
How Mortgage Rates Impact Home Affordability in Michigan
Michigan Housing Market Overview
According to the U.S. Census Bureau, the median owner-occupied home value in Michigan is approximately $231,600. The 2026 FHFA conforming loan limit for Michigan is $832,750.
Michigan Homeownership Rate
With a homeownership rate of 78.6% — well above the national average of 65.7% — Michigan has a strong ownership culture, making competitive mortgage rates especially important for buyers entering the market. The homeowner vacancy rate of 0.5% signals a tight market with limited available inventory — making it critical to secure the best possible rate quickly when a suitable property becomes available.
Monthly Payment Estimates for Michigan Buyers
Even a small difference in your interest rate can add up to tens of thousands of dollars over the life of a loan. The table below shows monthly principal and interest payments on a $190,000 mortgage — based on a 20% down payment on the Michigan median home value.
| Interest Rate | Loan Term | Monthly Payment | Total Interest Paid |
|---|---|---|---|
| 6.276% | 30-year fixed | $1,173 | $232,308 |
| 6.776% Current Avg | 30-year fixed | $1,236 | $254,824 |
| 7.276% | 30-year fixed | $1,299 | $277,815 |
| 6.402% | 15-year fixed | $1,645 | $106,079 |
A 0.500% rate increase on a $190,000 loan adds roughly $64 per month and over $22,992 in total interest over a 30-year term. That’s why comparing verified, current rates from multiple lenders — using the rate table above — is one of the most impactful financial decisions a Michigan buyer can make.
Data sources: U.S. Census Bureau; Federal Housing Finance Agency (FHFA). Monthly payments shown are principal & interest only — taxes, insurance, and PMI not included.
Michigan Income & Housing Affordability
At a price-to-income ratio of 3.2x, Michigan is a relatively affordable housing market compared to national averages. That ratio — median home value divided by median household income — is a standard benchmark used by housing economists to gauge how accessible homeownership is relative to local earnings. The national baseline is approximately 3.8x.
What This Means for Michigan Buyers
With a median household income of $72,875 per year in Michigan ($6,073/month) and a median home value of approximately $231,600, a buyer financing at 80% LTV at the current average rate would commit roughly 20.3% of gross monthly income to principal and interest alone. that falls within a manageable range relative to income, though taxes, insurance, HOA fees, and PMI will add to the true monthly cost of ownership.
Data sources: U.S. Census Bureau. Monthly payment estimate assumes 80% LTV at current average rate; principal and interest only.
Full Cost of Homeownership in Michigan
A mortgage payment is just the starting point. Property taxes, insurance, and utilities add hundreds of dollars per month to the true cost of owning a home across Michigan. Understanding the full picture before you buy is the difference between a home you can afford and one that stretches you thin.
Owner vs. Renter Costs
Across Michigan, the median homeowner with a mortgage pays approximately $1,099/month in total housing costs — covering the mortgage payment, property taxes, insurance, and utilities. The median renter pays $1,129/month including utilities. In this market, owning costs less per month than renting — a compelling financial case for buyers who can qualify for financing. Property taxes alone account for $243/month of the ownership cost, a figure that can vary dramatically by location and is often underestimated by first-time buyers.
Housing Cost Burden
The federal standard defines “cost burdened” as spending more than 30% of gross household income on housing. “Severely cost burdened” means spending 50% or more. Both thresholds leave little room for savings, emergencies, or other financial goals.
Across Michigan, 23.3% of homeowners with mortgages are cost burdened and 47.2% of renters are cost burdened. Renters face significantly higher burden rates than owners — a pattern that often reflects lower renter incomes rather than lower rental costs, and one that can make the path from renting to owning financially difficult even when mortgage payments might be affordable. The 23.3% owner burden rate is below the national average of 28.0%, suggesting this market offers relatively manageable ownership costs relative to local incomes.
Data sources: U.S. Census Bureau, American Community Survey 5-Year Estimates. Monthly owner costs include mortgage payment, taxes, insurance, and utilities. Property taxes reflect median annual taxes for mortgage holders. Rent reflects median gross rent including utilities. Cost burden figures reflect households spending 30%+ of gross income on housing.
Michigan Mortgage Payment Calculator
See your estimated monthly principal & interest payment at today’s Michigan rates. The home price is prefilled with the local median home value — adjust anything, or click a current rate on the right to apply that loan type’s rate and term instantly.
Principal & interest only — excludes property taxes, homeowners insurance, PMI, and HOA dues. See the Full Cost of Homeownership section above for those figures. Estimates are for informational purposes only.
Run the Numbers on Your Michigan Home Loan
Rates are only part of the equation. Use these calculators to translate current Michigan mortgage rates into real numbers for your specific situation — before you talk to a lender.
Enter your loan amount, interest rate, and term length to see your estimated monthly principal and interest payment. Adjust any variable to model different scenarios — a larger down payment, a shorter term, or a rate a quarter-point lower than what you were quoted.
CalculateTell us your gross income, monthly debt obligations, and how much you have for a down payment. We’ll show you the home price range you’re likely to qualify for at current Michigan rates — so you can shop with a realistic number in mind rather than discovering your ceiling after you’ve fallen in love with a property.
CalculateIf you already own a home, enter your current rate, remaining loan balance, and the rate you’ve been quoted to refinance. The calculator shows your new monthly payment, how much you’d save each month, and the break-even point — the number of months it takes for your savings to cover the closing costs of refinancing.
CalculateBuying isn’t always the better financial decision, and renting isn’t always throwing money away. This calculator weighs the full cost of each path — mortgage payments, taxes, insurance, and maintenance against rent increases and the opportunity cost of a down payment — to show which option builds more wealth over your intended time horizon in Michigan.
CalculateTypes of Mortgages Available in Michigan
Borrowers in Michigan have access to a wide range of mortgage programs. Rates, down payment requirements, and eligibility rules vary significantly across products — understanding the differences before you compare lenders can save thousands of dollars over the life of your loan.
Fixed-Rate Mortgage
A fixed-rate mortgage locks your interest rate in for the entire loan term — your principal and interest payment on day one is identical to payment 360. That predictability is valuable for long-term financial planning, especially in markets where housing costs represent a large share of household income.
Available in 10-, 15-, 20-, and 30-year terms. The 30-year minimizes monthly payments; the 15-year cuts total interest paid dramatically but requires a higher monthly commitment. The payment comparison table above shows exactly how those trade-offs look at today’s Michigan rate levels.
Adjustable-Rate Mortgage (ARM)
An ARM offers a fixed introductory rate for an initial period — commonly 5, 7, or 10 years — after which the rate adjusts periodically based on a market index. The starting rate is typically lower than a comparable fixed-rate loan, which reduces your monthly payment during the initial window.
ARMs work best when you have a defined exit timeline: if you plan to sell or refinance before the fixed period ends, you capture the lower rate without exposure to future adjustments. Rate caps govern how much the rate can move at each adjustment and in total, so read those terms closely before committing.
FHA Loan
Backed by the Federal Housing Administration, FHA loans are built for buyers who don’t yet meet conventional loan standards. You can qualify with a credit score of 580 and just 3.5% down — and some lenders will consider scores as low as 500 with a 10% down payment.
The cost of that lower barrier is mortgage insurance. FHA loans carry an upfront MIP of 1.75% of the loan amount (which can be rolled in) plus an annual MIP of 0.15%–0.75% depending on your term and LTV. For buyers who would otherwise wait years to save a larger down payment — given ongoing home price trends in Michigan — FHA is often the faster path to ownership.
VA Loan
Available to eligible active-duty service members, veterans, reservists, National Guard members, and qualifying surviving spouses, VA loans are among the most favorable mortgage programs available anywhere. No down payment is required, there is no monthly mortgage insurance, and rates are generally competitive with — and often better than — conventional loan rates.
A one-time funding fee applies — 2.15% of the loan for first-time VA borrowers with no down payment — which can be financed into the loan. In Michigan, where home prices require substantial savings for a conventional down payment, the zero-down VA benefit is an enormous advantage for those who qualify.
Jumbo Loan
Conforming loan limits in Michigan vary by county. The 2026 FHFA baseline is $832,750 for most counties, with higher limits in designated high-cost areas. Any mortgage exceeding the applicable county limit is a jumbo loan and falls outside Fannie Mae and Freddie Mac guidelines.
Jumbo underwriting is stricter: lenders typically require a credit score of 700 or higher, substantial cash reserves, thorough income documentation, and a down payment of at least 10–20%. Rates may run slightly above conforming levels, though the gap narrows in competitive lending environments.
Methodology & Data Sources
Independent, Free, and Unbiased Rate Comparisons: MonitorBankRates.com is an independent rate comparison service. Our Michigan mortgage 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. 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 Mortgage Rate Data: We aggregate mortgage and refinance rates for Michigan directly from the official websites of local lenders, credit unions, and national mortgage originators 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 loan products in Michigan. We feature a comprehensive mix of licensed NMLS financial institutions — from neighborhood credit unions and competitive regional banks to large national originators available to borrowers in MI.
Daily Updates & Time-Stamped Accuracy: Our rate updaters verify and update mortgage rates daily. Because rates and APRs can fluctuate rapidly based on bond markets and economic conditions, every loan 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.
How a Mortgage Works in Michigan
A mortgage is a loan used to buy a home in Michigan, secured by the property itself as collateral. The borrower repays the amount over a set term, most commonly 30 or 15 years, in monthly installments that cover both principal and interest. Because the loan is secured, the lender can foreclose on the home if payments are not made, which is part of why mortgage rates are lower than rates on unsecured debt.
Fixed-Rate vs. Adjustable-Rate Mortgages for Michigan Buyers
A fixed-rate mortgage keeps the same interest rate for the entire term, so a Michigan homeowner’s principal-and-interest payment never changes. For example, Honor Credit Union is listing a MSHDA 30 Year Fixed at 5.75%. An adjustable-rate mortgage (ARM) starts with a fixed period, often five, seven, or ten years, and then adjusts periodically based on a market index. ARMs usually open with a lower rate, but the payment can rise once the fixed period ends, so they tend to suit Michigan borrowers who expect to move or refinance before that point. On the adjustable-rate side, St Francis X Federal Credit Union is listing a 5/5 ARM (15-Year Term) at 5.00%.
How Michigan Mortgage Rates Are Set
Mortgage rates move with the broader bond market, particularly the yield on the 10-year Treasury, plus a spread that reflects lender costs and risk. On top of that national baseline, the rate a Michigan borrower is offered depends on individual factors: credit score, down payment size, loan amount, loan type, and the property itself. This is why the advertised rates above are a starting point, and a borrower’s final rate is set once an application is underwritten.
Points and Closing Costs in Michigan
The interest rate is not the only cost of buying a home in Michigan. Discount points are an optional upfront fee (one point equals one percent of the loan amount) paid to lower the rate over the life of the loan. Closing costs cover items such as origination fees, appraisal, title insurance, and recording, and typically run two to five percent of the loan. Comparing the annual percentage rate (APR) alongside the note rate helps Michigan shoppers account for these costs when weighing lenders.
When Michigan Homeowners Should Consider Refinancing
Refinancing replaces an existing mortgage with a new one, usually to secure a lower rate, change the term, or tap home equity. For Michigan homeowners, the general guideline is that refinancing makes sense when the savings from a lower rate recoup the closing costs within the time the borrower plans to stay in the home, known as the break-even point. Borrowers also refinance to switch from an adjustable rate to a fixed rate, or to remove mortgage insurance once enough equity has built up.
Frequently Asked Questions about Mortgage Rates in Michigan
How does my credit score affect my rate in Michigan?
What is a 30-Year Fixed Mortgage?
What are closing costs in Michigan?
Should I lock my mortgage rate?
What is an Adjustable-Rate Mortgage (ARM)?
What is a Jumbo Loan in Michigan?
Do I need 20% down to buy a house in Michigan?
What is the difference between Interest Rate and APR?
How do I find the best lender in Michigan?
What is the median home value in Michigan?
What is the homeownership rate in Michigan?
What is the conforming loan limit in Michigan?
What is the median monthly cost of homeownership in Michigan?
What are the median property taxes in Michigan?
What is the median rent in Michigan?
What percentage of homeowners are cost burdened in Michigan?
What percentage of renters are cost burdened in Michigan?
What are the best Mortgage rates in Michigan?
- Honor Credit Union: 5.75% (MSHDA 30 Year Fixed)
- Financial Plus Credit Union Flint, MI: 5.75% (30 Year Fixed - without DPA)
- Ukrainian Selfreliance Michigan Federal Credit Union: 6.00% (USMFCU 30 Year Fixed Mortgage)
- Wells Fargo: 6.00% (30-Year Fixed-Rate VA)
- Consumers Credit Union: 6.25% (30-Yr VA Loan)
Mortgage Rates by City in Michigan
