Michigan mortgage and refinance rates

Current mortgage rates in Michigan

As of Wednesday, October 29, 2025, current interest rates in Michigan are 6.00 percent for a 30-year fixed mortgage and 5.31 percent for a 15-year fixed mortgage.

Mortgage rates began the year over 7 percent, but due to economic uncertainty and concerns about inflation, they've been lower for the past few months. While mortgage rates change frequently and are difficult to predict, many experts believe they'll decrease modestly for the rest of the year and into 2026.

Refinance rates in Michigan

Michigan refinance rates, as well as those nationally, are higher than historic lows during the pandemic. However, that hasn’t stopped many Michigan homeowners from refinancing their loans, especially those who bought when rates were closer to 8 percent. In July 2025, there were 8,575 new mortgage refinance loans in the state, a 33 percent increase year over year, according to ATTOM, a real estate data provider. 

In addition, about a third of Michigan homeowners are “equity rich,” meaning they own at least 50 percent of their homes, according to ATTOM. If you've owned your home for awhile — or experienced a spike in home value — and you have a big expense coming up, you may be able to fund that cost using a cash-out refinance.

National mortgage rates by loan type

As you compare your options for the right mortgage to finance your home purchase, Daily Tech Finance’s data can help you see how any lender offers you receive stack up against national averages.

Michigan housing market statistics and trends

There's good news for first-time buyers in Michigan: The median sales price in the state is well below the national median, and after years of low supply, almost 9 percent more homes were on the market in September compared with a year ago. Almost 35 percent of homes had price drops in September, up from 31 percent of homes the previous year. 

• Median home sales price, August 2025: $285,000
• Median home value, August 2025: $277,400
• Median down payment, July 2025: $33,000
• Median days on market, September 2025: 31
• Percentage of homes sold above list price, September 2025: 30.3 percent
• Percentage of homes with price drops, September 2025: 34.6 percent
• Homeownership rate, Q2 2025: 72.6 percent

Sources: ATTOM, Redfin, U.S. Census Bureau

Mortgage options in Michigan

If you’re looking to get a mortgage in Michigan, explore these options:

• Michigan conventional mortgages: To qualify for a conventional mortgage, you’ll typically need a minimum 620 credit score and a debt-to-income (DTI) ratio of no more than 45 percent (with possible exceptions up to 50 percent). If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) as well. 
• Michigan FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to get a loan insured by the Federal Housing Administration (FHA). If you have a credit score of at least 580, you could qualify for a down payment as low as 3.5 percent.
• Michigan VA loans: If you’re a veteran or active-duty member of the military, or a surviving spouse, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t typically require a down payment or mortgage insurance, but you typically need to pay a funding fee, which ranges from 1.25 to 3.3 percent of the loan amount for home purchases.
• Michigan USDA loans: If you’re a low- to moderate-income buyer who's looking for property in a rural area, loans backed by the U.S. Department of Agriculture are worth a look. Fewer lenders offer these loans, but if you can find one, you may be able to score significantly lower mortgage rates.
• Michigan jumbo loans: While Michigan median sales prices are lower than the national average, there are still plenty of high-end properties available in the state — particularly in lakefront areas. If you’re looking to buy a property that exceeds the conforming loan limit, you’ll need to compare jumbo mortgage lenders and be prepared to make a down payment of at least 10 percent.

First-time homebuyer programs in Michigan

The state of Michigan offers mortgage options and first-time homebuyer assistance programs to help make homeownership more affordable, including the following:

• MI Home Loan program: The Michigan State Housing Development Authority connects first-time homebuyers, or those who haven’t owned a home in the past three years, with lenders participating in certain lower-cost mortgage programs. This includes the MI Home Loan, available to both first-time homebuyers throughout the state and repeat buyers in targeted areas. The program offers down payment assistance of up to $10,000. To qualify, you’ll need a minimum 640 credit score, and your household’s income can’t exceed certain limits.

How to find the best mortgage rate in Michigan

When shopping for a mortgage, be sure to compare several different lenders — research shows this exercise can save you thousands of dollars over the life of a loan. It’s also helpful to read lender reviews for your state.

Additional Michigan mortgage resources

• Michigan loan limits by county: Learn the FHA and conventional loan limits by county for Michigan.
• Michigan mortgage lenders: Compare these Michigan mortgage lenders.
• Mortgage calculator: Estimate your monthly payments for principal and interest costs. Don’t forget to budget more for other homeownership costs, including property taxes and homeowners insurance.
• Best Michigan homeowners insurance companies: Shop homeowners insurance policies to get the right plan for you.
• How to buy a house in Michigan: Read up on what it takes to buy a house in the Great Lakes State.
• Michigan housing market: Here’s everything you need to know about the residential real estate scene.