Michigan Mortgage Calculator 2026

Calculate your monthly mortgage payment for a home in Michigan (MI). The median home price in Michigan is $217,600, with an effective property tax rate of 1.28% (ranked #15 nationally). Use our free calculator to compare FHA, VA, USDA, and conventional loan options with real Michigan data.

Michigan Property Tax Information

Michigan has an effective property tax rate of 1.28%, ranking #15 among all 50 states. The median annual property tax is $2,795 ($233/month). Source: Tax Foundation 2025.

Michigan Loan Limits 2026

FHA loan limit in Michigan: $524,225 (floor) to $524,225 (ceiling for high-cost areas). Conforming loan limit: $806,500 (baseline) to $806,500 (ceiling).

Estimated Monthly Payment in Michigan

For a median-priced home of $217,600 with 20% down ($43,520), at 6.5% interest over 30 years: estimated monthly principal and interest is $1,100, plus $233 in property taxes and approximately $125 in homeowner's insurance, for a total estimated payment of approximately $1,458/month.

Michigan Closing Costs

Average closing costs in Michigan are $4,138 (1.08% of purchase price), ranked #20 nationally. Michigan charges a transfer tax on real estate transactions. Source: Bankrate/LodeStar 2025.

Michigan Housing Market 2026

Home prices in Michigan have increased 5.2% year-over-year. Average days on market: 32. Inventory level: moderate. Currently considered a buyer's market.

Down Payment Assistance Programs in Michigan

Michigan offers 3 down payment assistance programs through Michigan State Housing Development Authority (MSHDA):

  • MI 10K DPA (second mortgage): 0% interest, deferred second mortgage for first-time buyers. - Up to $10,000
  • First-Generation DPA (second mortgage): For first-generation homebuyers. Deferred, 0% interest loan. - Up to $25,000
  • MI Home Loan (forgivable loan): Competitive rates with forgivable DPA option. - Up to Up to 4% of loan amount

Contact MSHDA: https://www.michigan.gov/mshda | Phone: 517-335-9662

Did You Know About Michigan?

  • Michigan offers $25,000 DPA for first-generation buyers
  • Property tax assessed at 50% of market value
  • Prop A caps annual increases at inflation or 5%
  • Detroit area offers some of the most affordable housing

Frequently Asked Questions About Buying a Home in Michigan

What is the average property tax rate in Michigan?

The effective property tax rate in Michigan is 1.28%, with a median annual tax of $2,795. This ranks #15 among all states.

What are the FHA loan limits in Michigan for 2026?

The FHA loan floor in Michigan is $524,225 and the ceiling is $524,225 for high-cost areas. The conforming loan limit baseline is $806,500.

How much are closing costs in Michigan?

Average closing costs in Michigan are $4,138, which is approximately 1.08% of the purchase price.

Are there first-time homebuyer programs in Michigan?

Yes, Michigan offers 3 down payment assistance programs through Michigan State Housing Development Authority, including grants, forgivable loans, and second mortgages.

Is Michigan a good place to buy a home in 2026?

With a median home price of $217,600 and moderate inventory, Michigan is currently a buyer's market. Home prices have increased 5.2% over the past year.

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Data last updated: 2025-11. This information is for educational purposes only and should not be considered financial advice.