Michigan Mortgage Calculator: Estimate Your Monthly Payment
Updated: January 18, 2024
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Before committing to homeownership in Michigan, make sure you know the current mortgage rates in the state. As of March 25, 2022, mortgage rates average 3.922% for a 15-year mortgage and 4.78% for a 30-year mortgage. You must also consider real estate taxes. Michigan is in the top half of states for the cost of property taxes at $3,343 a year. Its real estate tax rate is 1.54%.
You also have to consider many factors specific to you, including your financial situation, the down payment you have available and what loan term makes your monthly payment affordable, as well as fees, like homeowners association and insurance.
To obtain a personalized monthly mortgage payment estimate, use our Michigan mortgage calculator. You can adjust the above factors to uncover the mortgage that works for you, and directions are below on how and why to use the calculator.
We also include in this guide ways to lower your mortgage payment and what to do after estimating your payment to purchase a home.
Start Here: Plug In Your Mortgage Factors
MoneyGeek’s Michigan state mortgage calculator provides you with a comprehensive way to know how much your monthly mortgage payment may be. We also include definitions below of the 12 factors of a mortgage if you need a greater understanding.
Why and How to Use Our Mortgage Calculator
When buying a house in Michigan, you should understand how your financial situation affects your buying options. By using our Michigan mortgage calculator, you can have a good idea of how to plan and budget for a mortgage payment.
The Michigan mortgage calculator is easy to use. You just need to provide information based on your situation, and you receive a personalized estimate of your mortgage loan costs. For example, you need to know the home price, your down payment and the interest rate.
Here are the 12 key factors you need to evaluate when determining your potential mortgage in Michigan.
Home Price:
Enter the maximum amount you can afford or the loan amount you plan to borrow.
Down Payment:
Homebuyers in Michigan typically put 20% down. You can input a percentage of the purchase price or enter your down payment in dollars.
Interest Rate:
If you know the interest rate you qualify for, enter it here. If not, MoneyGeek has current lender rates to review.
Loan Terms:
Input the length of time you want to completely pay off the loan. Most mortgages are for 10, 15, 20 or 30 years.
Payments per Year:
If you wish to pay every month, that is equivalent to 12 payments per year.
Property Tax:
Enter the average annual tax for Michigan — $3,343.
HOA Fees:
These are dues paid to maintain amenities and common areas within a neighborhood. If your property has an HOA and you know the fee, enter it.
Principal & Interest:
The principal is the amount of the loan itself, while the interest is the fee you pay for getting the loan.
Monthly Payment:
This is the total you pay every month, including principal and interest, insurance, HOA fees and property taxes.
Principal Payment:
This component of your monthly mortgage payment lowers your overall balance.
Interest Payment:
This refers to the interest you pay on the loan to compensate the lender for it. This amount does not reduce your total loan balance.
Total Cost With Interest:
The total amount you pay to the lender for principal and interest over the loan term.
If your budget makes it necessary to find ways to reduce your monthly mortgage payment in Michigan, here are tips that might help.
- Buy a less expensive house. You pay a lower monthly payment for a lower value property.
- Find a lower interest rate. Shop around and watch the market. Be on the lookout for low-interest rates from lenders for money-saving opportunities.
- Extend your loan term. If you want a lower monthly payment, extending the term of your mortgage can help. A longer term spreads out the loan balance over more payments, which reduces your monthly costs.
- Look for cheap homeowners insurance companies. Shop around and compare quotes from different companies. Don’t be shy to ask for discounts. You can check out our list of cheap homeowners insurance companies to get started.
Next Steps: What To Do After You Have Estimated Your Mortgage Payments
By knowing a great deal about buying a house in Michigan and the current mortgage rates and types, the better you can explore your options. Here are MoneyGeek resources that can help in your home-buying journey.
- Shop & Compare Rates - Contact several mortgage lenders and compare their rates and fees to see which fits your needs. Explore our Michigan mortgage rates for more information.
- Not Ready To Buy? Not sure whether it’s time to buy a house or rent? Check out our rent vs. buy guide to help you decide.
- Learn More - Need more information to find the right type of mortgage for you? Read our guides to reverse mortgages, VA loans and FHA loans.
Frequently Asked Questions About Mortgages in Michigan
When issuing mortgage loans, lenders usually consider the debt-to-income (DTI) ratio. In Michigan, lenders consider your home loan affordable if the DTI is 36% or lower. But, consider what you’re comfortable paying to gauge your home mortgage affordability.
The average outstanding mortgage amount in Michigan is $132,467.
While not all mortgages in Michigan require a 20% down payment, it still makes sense to pay it if possible to avoid private mortgage insurance (PMI). You may be able to buy a home with as little as 5% down, or no down payment if you qualify for a USDA or VA loan.
Private mortgage insurance (PMI) is necessary in Michigan if you put less than 20% down or if you are refinancing your mortgage and your equity is less than 20%. Once you reach 20% equity in the home, you can remove PMI through a refinance.
Homeowners in Michigan pay $3,343 per year on average for property taxes.
In Michigan, the average is around $1,031 for a monthly mortgage payment, which is $128 less than the national average.
The median home price in Michigan is $154,500.