Mortgage Calculator in Michigan

Calculate your monthly mortgage payment in Michigan using the 2026 median home price of $250K and current local rates. Adjust the inputs below to match your situation.

Michigan Housing Market at a Glance (2026)

$250K

Median Home Price

6.85%

Avg Mortgage Rate

1.54%

Property Tax Rate

10%

Typical Down Payment

Buying a Home in Michigan: Costs to Know

Average closing costs2.5% of purchase price

On a $250K home, closing costs ≈$6,250

Median household income$63,000/yr

State income tax (top rate)4.25%

First-Time Buyer Programs in Michigan

Michigan offers state-sponsored programs that can reduce your down payment or closing costs:

✓MI Home Loan
✓MSHDA Down Payment Assistance

How Mortgage Payments Work in Michigan

A standard mortgage payment in Michigan is calculated using the amortization formula:M = P[r(1+r)^n] / [(1+r)^n - 1]

Where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. On a $250K home in Michigan with a 10% down payment at 6.85% over 30 years, your principal and interest payment comes to approximately $1,474/month— not including property taxes or homeowner's insurance.

Michigan's property tax rate of 1.54% adds roughly $321/month to your total housing cost on a $250K home. This rate is above the national average of ~1.1%, so factor it carefully into your budget.

Michigan vs. National Average

Metric	Michigan	National Avg
Median Home Price	$250,000	$420,000
Property Tax Rate	1.54%	1.07%
Avg Mortgage Rate	6.85%	6.85%
Cost of Living Index	89	100

Frequently Asked Questions — Mortgage Calculator in Michigan

What is the average mortgage payment in Michigan?+

Based on the median home price of $250K in Michigan with a 10% down payment and 6.85% rate (30-year fixed), the estimated monthly principal and interest payment is approximately $1,474. Adding property taxes (~$321/mo) and homeowner's insurance, total PITI is typically $1,945–$2,045/month.

What is the property tax rate in Michigan?+

Michigan has an average effective property tax rate of 1.54%. On the median home price of $250K, that equals roughly $3,850 per year — or $321 added to your monthly mortgage payment. This is above the national average of ~1.1%, so budget carefully.

How much down payment do I need to buy a home in Michigan?+

The typical down payment in Michigan is 10% — about $25,000 on the median $250K home. Conventional loans require as little as 3% down; FHA loans allow 3.5%. First-time buyers may also qualify for assistance through programs like MI Home Loan.

What are closing costs in Michigan?+

Average closing costs in Michigan are approximately 2.5% of the purchase price — about $6,250 on the median $250K home. Closing costs include lender origination fees, title insurance, escrow, prepaid interest, and government recording fees.

What income do I need to afford the median home in Michigan?+

To afford the $250K median home in Michigan under the 28% housing-cost rule, you need a gross monthly income of at least $6,946 — roughly $83K/year. The median household income in Michigan is $63,000.

Data Sources & Methodology

State data sourced from the National Association of Realtors (median home prices), Tax Foundation (property tax rates, income tax), Freddie Mac PMMS (mortgage rates), ATTOM Data Solutions (closing costs), and U.S. Census Bureau ACS (household income). Last updated 2026.